Aiming at the structural contradictions and problems of supply side caused by the separation of Chinese and western medicine education and diagnosis, and the mismatch between financial costs in medical and health index, this paper, from Japan to restore Chinese prescription medicine and make them into mainstream case, illuminates the innovation and fusion of Chinese and western medicine is the key to optimize the structure of diagnosis and treatment, and convert the separation mode of Chinese and western medicine, the difficulty lies in the inheritance and innovation of traditional Chinese medicine to explore the “treasure” to highlight its effectiveness. This paper also takes the artemisinin and “Yunnan Baiyao” poverty alleviation project as the real case, demonstrates the necessity and feasibility of “double four modernizations” of traditional Chinese medicine, and puts forward appropriate policies in terms of talent training, diagnosis and treatment management, medical insurance, etc.