China’s medicine consumption in 1981 was valued at 8,300 million yuan, a 6.8% increase over 1980. The average annual per capita spending on Medicine rose from 7 yuan in 1979 to 8.37 yuan in 1981. This rise is attributed to the peasants’ increased income and a large demand for traditional Chinese medicines. Statistics showed that 60% of the country’s total sales for medicine in 1981 were in rural areas, a 14.5% increase over 1979.