2020 marks the successful conclusion of the “13th Five-Year Plan” and the beginning of the “14th Five-Year Plan”. The continuous deepening supply-side structural reform promotes the steady and long-term development of the domestic economy to move towards high-quality development. With the implementation of policies on the consistency evaluation of quality and efficacy of generic drugs，as well as volume-based procurement，the requirements for quality and cost control of generic drugs have increased，forcing companies to transform and upgrade. Some companies’ advantages in terms of quality，price and cost have gradually emerged，and their competitiveness in the international market is greatly improved. This paper reviews the development during the “13th Five-Year Plan” period，and analyzes the production and sales of China’s pharmaceutical industry in 2020. Domestic pharmaceutical companies are undergoing the industrial upgrading from “imitation-based” to “innovative development”，increasing R&D investment，comprehensively adjusting the existing product structure，and vigorously investing in innovative drugs and generic drugs with high-tech barriers in the therapeutic field. Innovative R&D will become the main driving force for pharmaceutical companies in the future.