This chapter explores the intricate dynamics surrounding Traditional Medical Knowledge (TMK) in China, highlighting its historical, cultural, and legal complexities. TMK, deeply embedded in China's sociocultural fabric, represents a collective heritage of its diverse ethnic groups and unified national identity. This chapter underscores the communal and dynamic nature of TMK, emphasising its ability to adapt over time while maintaining its cultural and spiritual significance. By examining TMK's historical evolution, cultural diversity, and customary practices, this chapter reveals its critical role in shaping China's pharmaceutical advancements, particularly through the case study of Artemisia annua (Qinghao) and the development of artemisinin, a globally significant antimalarial drug. Through a detailed patent landscape analysis, this chapter identifies the growing appropriation of TMK by domestic entities, exposing tensions between traditional custodians and modern stakeholders. It critiques the lack of adequate recognition for TMK holders, particularly ethnic minority communities, and highlights the misappropriation risks under China's current legal framework. The analysis also reveals gaps in China's patent law, such as unclear disclosure requirements, and underscores the need for more robust policies that balance TMK protection with innovation. This chapter concludes with a call for a comprehensive and inclusive legal framework that respects China's unique historical and cultural context, supports the preservation of TMK, and ensures equitable benefit-sharing for its holders. By addressing these challenges, this framework can promote a sustainable model for the responsible use and dissemination of TMK, safeguarding its invaluable contributions for future generations.