This Act is enacted to foster the sustainable development of Chinese medicine and pharmacy and protect the health and wellbeing of all nationals.

The term "competent authority" as used in this Act shall mean the Ministry of Health and Welfare at the central government level, the municipal governments at municipality level, or the county/city governments at the county/county-administered city level.

The terms used in this Act are defined as follows:
1.“Chinese medicine”: refers to the medical practice based on the Chinese medical theory and applied in the traditional and modern development of health promotion and disease treatment.
2.“Chinese medicine products”: refers to Chinese medicine materials and Chinese medicine preparations based on the Chinese pharmacy theory and applied to the diagnosis, treatment, mitigation and prevention of the diseases.
3.“Chinese medicine and pharmacy”: refers to the Chinese medicine and the Chinese medicine products.

The government shall contribute to developing Chinese medicine and pharmacy, guaranteeing and substantiating the funding for development requirements.