Nestled in the heart of the Jing Mountains, Baokang in Xiangyang, Hubei Province, is often described as boasting “mountainous area accounting for 80%, the water area for 10%, and the farmland area for 10%.” Its undulating terrain and dense forest cover have fostered the growth of a diverse array of authentic Chinese medicinal herbs. From seedling cultivation in the fields to product research and development for deep processing, and further to the integrated development of healthcare and cultural tourism, Baokang’s Chinese herbal medicine industry has advanced steadily in recent years. It has successfully linked “a single herb” into a “golden industrial chain” that enriches local communities and revitalizes rural areas.

In the midwinter season, the air becomes permeated with the aromatic scent of Chinese medicinal herbs, signaling the onset of the annual harvest season for traditional medicinal materials. At Xiangyang Xinhefeng Agricultural Co., Ltd.’s processing facility in Zhangwan Village, Maqiao Town, a steady flow of vehicles arrives and departs continuously. Workers are diligently engaged in sorting, removing impurities, and roasting the procured Cang Zhu, whose scientific name is Atractylodes lancea (Thunb.) DC., presenting a vibrant and bustling scene of seasonal abundance.

Wei Jinliang, a resident of Luojiashan Village in Maqiao Town, is an experienced cultivator of Chinese medicinal herbs. He has dedicated all 10 mu of his family’s primary farmland to the cultivation of Cang Zhu, employing a rotational farming approach by harvesting each mature batch in succession. Traditional Chinese medicinal herbs have thus become his family’s “green bank,” serving as a reliable source of increased income and a pathway to financial stability and prosperity.

“I’ve been growing Cang Zhu for more than ten years. It’s much better than planting corn—two mu can earn 30,000 to 40,000 yuan,” Wei said.

In 2022, Baokang successfully attracted investment to introduce Hubei Rural Investment (Baokang) Agricultural Development Co., Ltd., and integrated resources with the local Xiangyang Xinhefeng Agricultural Co., Ltd. With continuous advancements in technology, production output has increased steadily year on year. To date, the county has established 152 specialized villages dedicated to Chinese medicinal herb cultivation, fostered the development of 138 new agricultural business entities, and supported 45,000 households in cultivating 95,000 mu of Chinese medicinal herbs. The average annual income per mu reaches approximately 5,000 yuan. A total investment of 31.2 million yuan has been allocated to construct a modern agricultural industrial park for the processing of Chinese medicinal herbs, which provides 1,250 full-time job opportunities annually, generating an average per capita annual income of 15,000 yuan.

“In 2025, our village developed more than 800 mu of Chinese medicinal herbs such as Cang Zhu and Yinyanghuo (short-horned Epimedium Herb). Out of the village’s 345 households, 175 are engaged in Chinese herb cultivation. This initiative has enabled the village collective to generate an additional annual income of 800,000 yuan, while each participating farming household earns an average of more than 20,000 yuan annually,” said Hu Shunzhou, a village official from Hengxi Village, Maqiao Town.

In previous years, locally processed Chinese medicinal herbs from Baokang were mainly sold to a Japanese pharmaceutical company in Shenzhen, Guangdong Province. In recent years, however, Baokang has signed sales agreements with many domestic pharmaceutical enterprises. With stable sales channels now established, the market for Chinese medicinal herbs has shifted from a “buyer-dominated” model to one characterized by “holding inventory for more favorable pricing.”

“Our company purchases all raw Cang Zhu produced across the county, helping more than 8,000 herb-growing households achieve stable income growth. We expect to purchase over 2,000 tons of raw Cang Zhu annually and produce about 600 tons of finished Chinese medicinal products,” said Feng Zifa, Deputy General Manager of Xiangyang Xinhefeng Agricultural Co., Ltd.

Fertile land yields “gold,” and industries are “blossoming everywhere.” After years of development, 91% of households in Zhangmugou Village, Siping Town, now grow Chinese medicinal herbs, transforming it into a genuine specialized village for Chinese herbal medicine production.

Inside intelligent greenhouses, administrators need only operate a remote control to activate the automated irrigation system, which precisely delivers water, fertilizers, and agrochemicals directly to seedlings. All operational parameters are seamlessly integrated with mobile terminals, enabling round-the-clock precision management and ensuring “measurable environments, controllable production processes, and fully traceable product quality.”

At the village’s under-forest Chinese medicinal herb demonstration base, well-connected roads and orderly ridges provide an ideal environment for the flourishing growth of Cang Zhu, Baiji (Bletilla striata), Yinyanghuo, and Huang Jing (Polygonatum sibiricum). To date, Zhangmugou Village has developed 800 mu of Chinese medicinal herbs and has catalyzed the development of an additional 2,000 mu in neighboring villages.

“Through the Chinese medicinal herb industry, we have helped nearly 300 households increase income. This year’s annual output value is expected to exceed 6 million yuan,” said Chu Zongxin, Party Secretary of Zhangmugou Village.

The sustained and healthy development of the Chinese medicinal herb industry has most benefited residents. “I can earn three to four thousand yuan a month, take care of things at home, and still make money,” said Qu Dingyu, an employee of Xiangyang Xinhefeng Agricultural Co., Ltd.

In recent years, Baokang County has comprehensively strengthened and advanced the Chinese herbal medicine industry through policy guidance, enterprise leadership, and technological innovation. A chain leader system for the authentic Chinese herbal medicine industry chain has been established, with top county officials serving as principal coordinators, the agricultural department assuming primary responsibility, and a dedicated task force overseeing and promoting the development of the authentic Chinese herbal medicine industry chain. Annually, no less than 25 million yuan in fiscal funding is allocated to support the growth of the Chinese herbal medicine sector. Today, the Chinese herbal medicine industry has emerged as a key pillar and green industry, driving prosperity for residents in mountainous regions.