The TCM products protection system is a socialist legal system with Chinese characteristics for the government intervention and management on economic activities in specific fields. In December 2022, the “Regulations on Protection of Traditional Chinese Medicinal Products (Revised Draft for Soliciting Opinions)” proposed the institutional design of the exclusive protection for TCM products, which conforms to the innovative laws of TCM, has historical inevitability and fairness for regulating the market rationally. Only by correctly understanding the innovative laws of TCM can the necessity and rationality of the system itself be correctly evaluated. Improving the quality of TCM products is an abandoning process. The rules on cultural inheritance and innovation should be followed, every progress must be affirmed and encouraged. The innovation capability of the TCM industry is the foundation of modern enterprise market competition. Market management requires targeted and effective market incentive policies. Confronting the legal needs of TCM enterprises for business environment and establishing an exclusive protection mechanism are conducive for enterprises to participate in domestic and international market competition. The content of this article only represents the author's viewpoint and does not represent the author's unit's viewpoint or position.