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1、Investing in Chinas Healthcare SectorUnderstanding Chinas Rapidly Growing Healthcare MarketTapping into Chinas Healthcare Boom:Trends and OpportunitiesKey Considerations for Entering Chinas Healthcare MarketPg 04Pg 12Pg 18Issue 200 March 2023|www.china- From Dezan Shira&Associates China Briefing Iss
2、ue 200 March 20232IntroductionCreditsPublisher-Asia Briefing Media Ltd.Lead Editor-Melissa CyrillEditors-Qian Zhou,Arendse Huld,Giulia InteresseDesigner-Aparajita ZadooChina is a highly promising market for the global healthcare industry,boasting immense size,diversity,and growth potential.In 2021,t
3、he healthcare market generated RMB 10 trillion(approx.US$1.5 trillion)in total revenue,making it the worlds second largest.This figure is expected to continue to grow in the coming decades,propelled by a combination of government support and Chinas changing demographics.Facing a rapidly aging popula
4、tion and the surge in demand for superior healthcare and service,the government has made healthcare sector development a top priority.Numerous opportunities will arise for players in different parts of the supply chain,including drug R&D,equipment production,caregiving,and niche areas such as biotec
5、h,digital healthcare,MedTech,and AI healthcare.That said,Chinas healthcare market is also heavily regulated,with strict compliance requirements and intense competition.To succeed in this booming sector,foreign investors must grasp the evolving needs of Chinese consumers and the pertinent industry po
6、licies and regulatory developments.In this issue of China Briefing Magazine,we explore the opportunities and challenges present in Chinas healthcare sector.We begin by providing an overview of the healthcare market and outlining growth factors.Next,we investigate leading healthcare trends and delve
7、into niche sectors.Finally,we highlight key considerations for entering Chinas healthcare market and summarize critical success factors.We hope this magazine can help your business prepare to thrive in this rapidly expanding market.ALBERTO VETTORETTIPartnerDezan Shira&AssociatesWith kind regards,Alb
8、erto Vwww.india-www.vietnam-www.asiainvestmentresearch.orgwww.china-www.russia- China Briefing Issue 200 March 20233Asia Briefing Ltd.Unit 507,5/F,Chinachem Golden Plaza,77 Mody Road,Tsim Sha Tsui East Kowloon,Hong Kong.Annual SubscriptionChina Briefing Magazine is published four times a year.To sub
9、scribe,please visit please explore the clickable resources below.ContentsUnderstanding Chinas Rapidly Growing Healthcare MarketPg 04Tapping into Chinas Healthcare Boom:Trends and OpportunitiesPg 12Key Considerations for Entering Chinas Healthcare MarketPg 18ReferenceChina Briefing and related titles
10、 are produced by Asia Briefing Ltd.,a wholly owned subsidiary of Dezan Shira Group.Content is provided by Dezan Shira&Associates.No liability may be accepted for any of the contents of this publication.Readers are strongly advised to seek professional advice when actively looking to implement sugges
11、tions made within this publication.For queries regarding the content of this magazine,please contact:All materials and contents 2023 Asia Briefing Ltd.Like China Briefing on FacebookFollow China Briefing on TwitterConnect with Dezan Shira&Associates on LinkedinView Dezan Shira&Associates on Youtube
12、Follow UsScan the QR code to follow us on WeChat and gain access to the latest investor news and resourcesConnect with us for the latest news,events and insights across Asia.Legal,Tax,Accounting Newswww.china- and W S Advisory and CInvesting in Chinas Healthcare Sector China Briefing Issue 200 March
13、 20234Understanding Chinas Rapidly Growing Healthcare MarketChinas healthcare sector is among the largest and fastest-growing industries in the country.The surge in demand for superior healthcare and services is driving swift growth across various healthcare segments.Enhancing health outcomes in Chi
14、na has been a top priority of the government for several years.Currently,the government is tackling significant challenges,such as an aging population and unequal access to healthcare in various regions.Addressing these issues will require substantial investment in expanding and improving healthcare
15、 resources and capabilities,thereby presenting significant growth potential for both domestic and foreign firms.This chapter presents an overview of Chinas healthcare industry,examining recent healthcare indicators and core drivers of market growth.Arendse HuldAuthorChinas healthcare industry is exp
16、eriencing rapid growth,driven by rising incomes,increasing health awareness,and an ageing population.It is also a priority policy area for the government,which is eager to address healthcare gaps and meet rising demand.The industry thus presents a broad range of opportunities for businesses and inve
17、stors looking to provide innovative and high-quality products and services.Chapter 1Overview of Chinas healthcare marketChinas healthcare market has grown at a double-digit rate over the past decade.In 2021,total revenue for the healthcare market was estimated to be at around RMB 10 trillion(approx.
18、US$1.5 trillion),according to research from investment bank CEC Capital.Meanwhile,the“Healthy China 2030”initiative,one of the governments main blueprints for developing the healthcare industry,aims for the market to reach a value of RMB 16 trillion(approx.US$2.4 trillion)by 2030.Among some of China
19、s largest healthcare segments are pharmaceuticals(including biopharmaceuticals),medical devices and equipment,and healthcare services.PharmaceuticalsData from the National Medical Products Administration(NMPA)shows that the sale of seven major categories of pharmaceutical products western medicine,C
20、hina Briefing Issue 200 March 20235Chinese patent medicine,Chinese medicinal materials,medical equipment,chemical reagents,glass instruments,and others reached RMB 2.61 trillion(approx.US$404.5 billion)in 2021,a realized compound annual growth rate(CAGR)of 5.4 percent since 2017.Medical devices Chin
21、a is home to the second-largest medical device market in the world after the US,according to research from management consulting firm Roland Berger,as quoted by the Ministry of Commerce(MOFCOM).In 2022,the Chinese medical device market size reached RMB 958.2 billion(approx.US$142.4 billion),maintain
22、ing a seven-year CAGR of 17.5 percent.According to the report from Roland Berger,the industry is also becoming increasingly consolidated as it is growing.Chinese medical device companies above a designed size(those with a main annual business income of at least RMB 20 million(approx.US$3 million)acc
23、ounted for 60 percent of the industry in 2022.That year,there were also over 163 public medical device companies,almost double the number three years prior.Chinas medical device industry is broadly divided into four main sectors:equipment,such as instruments,utensils,and materials;high-value consuma
24、bles;low-value consumables;and in-vitro diagnostics.Of these,medical equipment accounted for 60 percent of the market in 2021,exceeding RMB 500 billion(approx.US$77.5 billion).According to a report from market research firm Frost&Sullivan,Chinas medical device industry accounted for around 23.2 perc
25、ent of the global market in 2020.Between 2020 and 2025,the industry is expected to grow at a CAGR of 10.9 percent,and then slow to a CAGR of 6.6 percent between 2025 and 2030.By 2030,the market is expected to be valued at RMB 1.7 trillion(US$278 billion).Chinas Healthcare Market at a Glance,2021Mark
26、et sizeHealthcare personnelHealthcare resourcesDemandHealthcare institutesExpenditureProjected growth rate Total revenue(est.)RMB 10 trillion(approx.US$1.5 trillion)Healthcare services(est.)RMB 8 trillion(approx.US$1.24 trillion)Total 13.99 millionPracticing doctors 4.3 millionRegistered nurses 5 mi
27、llionTotal beds 9.45 millionHospital beds 7.4 millionBeds per 1,000 people 6.7Hospital visits 3.9 billionHospital stays 201.6 millionTotal 1 millionHospitals36,570Note:Exchange rate is average rate of exchange in 2021.Source:China National Bureau of Statistics,Statista,2022 CEC Capital China Healthc
28、are Industry White PaperRMB 7.6 trillion(approx.US$1.2 trillion)Percent of GDP 6.5Per capita RMB 5,348(approx.US$829)Revenue CAGR(2023-2027)9.56 percent China Briefing Issue 200 March 20236The medical device market is currently dominated by foreign players,such as GE HealthCare,Siemens,and Phillips.
29、However,according to research by Deloitte,the market share of foreign companies has gradually fallen from 80 percent to 70 percent in the decade leading up to 2019,and is expected to fall further over the next decade as domestic players strive to catch up with international competition.Healthcare in
30、stitutionsAt the end of 2021,there were over one million healthcare institutions in China,8,013 more than in 2020.Among these,there were 36,570 hospitals,an increase of 1,176 from 2020,of which 11,804 were public and 24,766 were private.This means there was an average of two hospitals for every 100,
31、000 residents.This number is expected to increase to three for every 100,000 residents in 2022 and 2023,according to data from Statista.Meanwhile,revenue from hospitals reached US$580 billion in 2021,an increase of 12.9 percent from the previous year.Revenue is expected to reach almost US$1 trillion
32、 by 2027,growing at a CAGR of 7.57 percent.In 2021,people visited hospitals and medical institutions an average of six times,according to data from Chinas National Health Commission(NHC).Most of these visits were made to public hospitals.There were a total of 3.27 billion visits to public hospitals
33、that year,accounting for around 84.2 percent of total visits.Meanwhile,there were 610 million visits to private hospitals,around 15.8 percent of the total.Signs that Chinas healthcare market will continue to growGrowing healthcare expenditureChinas healthcare spending has grown significantly over th
34、e last two decades across all sources.In 2021,total expenditure reached RMB 7.6 trillion(approx.US$1.2 trillion),more than doubling from 2015.Healthcare expenditure accounted for 6.5 percent of the annual GDP in 2021,a slight decrease from 2020,when total healthcare accounted for 7.1 percent of tota
35、l GDP.Healthcare(RMB trillion)Sales(RMB trillion)Growth rate(%y/y)Growth rate(%y/y)Source:CEC Capital,open-source reportsNote:Includes seven major categories of pharmaceutical products:Western medicine,Chinese patent medicine,Chinese medicinal materials,medical equipment,chemical reagents,glass inst
36、ruments,and others.Source:National Medical Products Administration2.612.332.1725.66.277.8Growth of Chinas Healthcare Market,2016 to 2021Growth in Sales of Pharmaceutical Products,2017 to 20202530508.7102.41 China Briefing Issue 200 March 20237Of
37、 this,the government spending decreased slightly by 5.6 percent year-on-year,while both social and personal expenditure increased by 12 percent and 5 percent year-on-year,respectively.The reason for the decrease in government expenditure and increase in social expenditure is not entirely clear but c
38、ould be due in part to the fact that 2021 saw less prevalence of COVID-19,meaning less spending on treatment and prevention as compared to 2020.Meanwhile,the COVID-19 pandemic also increased demand for commercial healthcare as peoples awareness of health issues grew,which could reflect the increase
39、in social spending.Total spending per capita in 2021 reached RMB 5,248(approx.US$813.4),up from RMB 5,111(approx.US$740)in 2020.There is still a lot of room for Chinas healthcare expenditure to grow,as it is still below that of many high-income nations.In South Korea,for instance,healthcare expendit
40、ure in 2021 accounted for 8.8 percent of GDP,while Germany and France stood at 12.8 and 12.4 percent,respectively.Healthcare expenditure per capita is also significantly below that of high-income countries;Germanys healthcare expenditure per capita in 2021 was US$7,383,while South Koreas was US$3,91
41、4.The government is expected to continue increasing healthcare budgets over the next decade as the aging and increasingly wealthy population puts more pressure on healthcare services and infrastructure.Meanwhile,social expenditure will also have a major role in Chinas future healthcare market.Accord
42、ing to Chief Macro Analyst at securities firm China Merchants Securities Xie Yaxuan,Chinas healthcare expenditure is likely to increasingly come from social and commercial sources,such as insurance expenditures,commercial health insurance premiums,social healthcare aid,and so on.According to Xies pr
43、edictions,commercial health insurance will reach a scale of between RMB 2 trillion(approx.US$297.2 billion)and RMB 3.4 trillion(approx.505.2 billion)by 2030.In 2021,it was around RMB 880.4 billion(approx.US$136.5 billion),according to data from the China Banking and Insurance Regulatory Commission(C
44、BIRC).This presents a significant growth opportunity for commercial health insurers.Healthcare resources still inadequate in certain areas The availability of healthcare resources in China has improved significantly over the last two decades.China has for long had shortages of key resources,such as
45、medical professionals,institutions,and pharmaceuticals.Today however at least in urban regions these have largely caught up with international levels.In 2021,there were almost 14 million people working in the healthcare industry,an addition of around 508,000 people from 2020.Of these,60.6 percent we
46、re working in hospitals,31.7 percent were working in primary healthcare facilities,village clinics,outpatient departments,and so on,and 6.9 percent were working in specialized public healthcare institutions.Breakdown of Healthcare Expenditure Sources,202144.9%27.4%27.7%GovernmentSocialPersonal(cash)
47、Source:National Bureau of Statistics China Briefing Issue 200 March 20238But among the healthcare professionals,4.3 million were practicing doctors(including assistant doctors)and just over 5 million were registered nurses.This means there were around 3.04 doctors and 3.56 nurses for every 1,000 peo
48、ple.This has increased from just 1.8 practicing doctors and 1.7 registered nurses per 1,000 people in 2011,and also exceed the minimum recommended number of medical professionals per 1,000 people of 2.5 set by the World Health Organization(WHO).However,there is a clear discrepancy in the distributio
49、n of doctors and nurses across different areas of the country.In 2021,there were 3.7 practicing physicians for every 1,000 people in urban areas,versus just 2.4 in rural areas.For nurses,the difference was even bigger,standing at 4.6 and 2.6,respectively.This is a significant concern especially as t
50、he smaller cities and towns tend to have populations that are older than average,due to younger workers leaving for the larger cities.At the end of 2021,there were over 9.4 million beds across all types of medical institutions.This is almost double the number of 2011,when there were a total of 5.16
51、million beds.Among them,78.5 percent of beds were in hospitals,of which 70.2 percent were in public hospitals and 29.8 percent were in private hospitals.The urban-rural divide is also visible with the availability of beds in 2021,there were an average of 7.5 beds for every 1,000 people in urban area
52、s,but only 6 for every 1,000 people in rural areas.Redistributing healthcare resources or increasing the availability and capacity of rural healthcare institutions will therefore be an important focus for the government in coming years.Rural areas and smaller cities are also areas with high growth p
53、otential,both due to their relative shortages and their older populations.On the other hand,although Chinas medical resources have largely caught up with international levels,the availability of resources will have to continue to grow if it is to keep up with demand.This is because older populations
54、 generally have a greater need for medical 0000Medical personnel(1000)*Beds in medical institutions(1000)*20001920202021Increase in Medical Resources,2013 to 2021*Employees working in hospitals,primary medical and health institutions,professional public health instit
55、utions and other medical and health institutions,including health technicians,rural doctors and health workers,other technical personnel,management personnel and workers.*Fixed actual beds(non-makeshift beds)at the end of the year,excluding obstetric neonatal beds,waiting beds in delivery rooms,stoc
56、k beds,observation beds,temporary extra beds,and beds for patients accompanying family members.Source:National Bureau of Statistics9798079450949281347513985 China Briefing Issue 200 March 20239resources than younger ones.Shortages of medical res
57、ources are being experienced even in wealthy nations that have ageing populations,such as the US.In China,this is compounded by the fact that elderly care services are already in short supply.Traditionally,elderly people are looked after by their families,which has to some extent abated the demand f
58、or public services.However,as family sizes shrink and some couples even forego having children altogether this will no longer be viable for many people.The 14th Five-Year Plan for the Development of National Aging Undertakings and the Elderly Care Service System,released in 2021,states that there is
59、 a need to address various challenges with regard to elderly care services,including the low level of services available in rural areas,the insufficient supply of home and community elderly care and high-quality inclusive services,the shortage of professionals,especially nursing staff,and the lack o
60、f scientific and technological innovation and product support in the industry.Changing demographics spurring increase in healthcare demandChinas demographic structure has been changing in recent years,with the population aged 65 years or older growing from 9.1 percent of the population in 2011 to 14
61、.9 percent in 2022,and the fertility rate declining from 11.93 per thousand people to 6.77 per thousand people in 2022.The rising share of elderly people in Chinas population has far-reaching implications for Chinese society and will be an underlying driver for the growth of Chinas healthcare market
62、.Elderly citizens,with extended life expectancy,will require social support and healthcare coverage for longer,placing more pressure on the healthcare industry and driving demand for services.However,the aging population is not the sole factor at play in the growing demand for healthcare services.Ac
63、cording to the 14th Five-Year Plan for National Health released by the National Development and Reform Commission(NDRC)in mid-2022,the incidence of chronic disease is rising.Those suffering from them are also getting younger,increasing the need for long-term care.Besides,growing awareness of mental
64、health and psychological disorders is increasing demand for specialized healthcare services and pharmaceuticals.Moreover,rising incomes and improving living standards means people are placing higher expectations on standard of care and more emphasis on improving quality of life.The high-end medical
65、sector is experiencing rapid growth as premium healthcare insurance and services expand beyond high-net worth individuals to the growing middle class,and from the large coastal metropolises to smaller cities.The impact of COVID-19 on the development of the healthcare industryThe COVID-19 pandemic ha
66、d a significant impact on Chinas healthcare industry,highlighting critical gaps and prompting urgent action from the government to address them.One notable outcome of these efforts was an increase in the countrys critical care capacity.Government health officials were reporting a rise in ICU beds fr
67、om 57,160 in 2019 to 138,100 by the end of 2022.In addition,China has also seen growth in primary care facilities like fever clinics,which serve as a first line of defense and help alleviate pressure on hospitals.The pandemic also catalyzed the digital healthcare space,enabling existing platforms to
68、 rapidly expand their user base and motivating traditional healthcare institutions to offer online services to patients for the first time.China Briefing Issue 200 March 202310Key Healthcare Targets for China202014th FYP target(2025)Healthy China 2030 target(2030)Life expectancy77.93Increase by one
69、year79Infant mortality rate(%)5.45.25Mortality rate of children under 5(%)7.56.66Maternal mortality rate(per 10,000)16.914.512Premature mortality rate from major chronic diseases(%)161530%lower than in 2015(19.1)Scale of healthcare service industry(trillion RMB)8(approx.US$1.2 trillion)11.5(approx.U
70、S$1.7 trillion)16(approx.US$2.4 trillion)Personal health expenditure as share of total health expenditure(%)27.72725Source:Healthy China 2030,14th Five-Year Plan for National HealthAdditionally,the pandemic has raised health awareness among the population,leading to increased demand for various heal
71、thcare services and products,such as air purifiers,vitamins,probiotics,and health insurance covering critical illnesses and accidents.However,on the other hand,the COVID-19 response also required diverting significant resources towards infrastructure and frontline workers to prevent the spread of th
72、e virus,potentially affecting funding for other areas of the healthcare system.Overall,the COVID-19 pandemic has presented both challenges and opportunities for Chinas healthcare industry,leading to significant investments and innovations aimed at better serving the health needs of the population.Po
73、licies for expansion and development of the healthcare marketFaced with a huge and rapidly aging population,the Chinese government has sought to support the expansion of the healthcare market through a range of policy documents and development blueprints.Key among them is the“Healthy China 2030”init
74、iative.Released in 2016,this is the governments core agenda for the development of the healthcare industry and covers strategies for a broad range of development objectives from reducing infant mortality rates to improving air pollution.One of the core goals of the agenda was for the healthcare serv
75、ice industry to reach a value of RMB 16 trillion(approx.US$2.4 trillion)by 2030.China Briefing Issue 200 March 202311In mid-2022,the NDRC released the 14th Five-Year Plan for National Health,which builds upon the goals of Healthy China 2030 and sets a variety of health targets for 2025.In addition t
76、o policies that seek to expand healthcare infrastructure and raise quality of care,the Chinese government has also released several healthcare initiatives that focus on long-term disease prevention by improving overall health and well-being of the population.These include the 14th Five-Year Plan Spo
77、rts Development Plan,which aims to build and expand access to sport and fitness infrastructure to encourage exercise,and the 14th Five-Year Plan for the Protection and Development of Disabled People,which outlines measures for improving the quality of life for disabled people,including improving qua
78、lity of care.The healthcare industry has long been one of the governments highest priority areas for investment.The Catalogue of Industries Encouraged for Foreign Investment has continued to increase the number of items related to healthcare in recent years.The 2022 catalogue added several new medic
79、al fields,including R&D and production of drugs for rare diseases and special drugs for children,manufacturing of dental implant systems for implant repair in patients with bone loss,manufacturing of hearing aid and cochlear implants,postpartum maternal and child services in maternity centers,and re
80、habilitation institutes for autistic children,among others.Chinas healthcare industry outlookThe Chinese healthcare market boasts huge growth potential across a broad range of sectors,driven by a combination of government support and increasing demand due to changing demographics and rising incomes.
81、The Chinese government has been instrumental in driving the development of the healthcare industry by introducing incentive policies and national strategies for industrial growth.As China seeks to enhance its healthcare capacity,numerous opportunities will emerge for players in different parts of th
82、e supply chain,including drug R&D,equipment production,and caregiving.The modernizing and rapidly evolving industry will also create opportunities for innovative and disruptive companies in areas such as digital healthcare and medtech(medical technology).Both domestic and foreign companies can tap i
83、nto the vast and rapidly growing Chinese healthcare market.However,companies must navigate regulatory requirements,adopt new technologies,and deliver high-quality and effective healthcare services that meet the evolving needs of Chinese consumers while aligning with government targets.In summary,the
84、 Chinese healthcare market presents an abundance of opportunities,and with the right strategies,companies can position themselves to take advantage of the markets potential and contribute to the countrys healthcare development.WE HELP INVESTORS NAVIGATE THE HEALTHCARE INDUSTRY IN ASIADezan Shira&Ass
85、ociates has helped foreign investors successfully enter the healthcare market in China,ASEAN,and India.From pre-investment studies and strategy development to incorporation and post-establishment compliances,our professionals have tailed services to help global investors enter this emerging industry
86、 in Asia.EXPLORE MORE China Briefing Issue 200 March 202312Tapping into Chinas Healthcare Boom:Trends and OpportunitiesFueled by a blend of government aid,rising demand from the middle-class population,and swift developments in medical technology,Chinas healthcare sector is experiencing remarkable g
87、rowth and is expected to attain a value of US$2.4 trillion by 2030.Spending on healthcare is projected to increase at a compound annual growth rate(CAGR)of 7.5 percent over the next decade,making it one of the countrys fastest-growing industries.With Chinas healthcare system undergoing modernization
88、,there is a tremendous opportunity for healthcare professionals and investors to enter the Chinese market.This chapter delves into the key trends and opportunities in Chinas healthcare industry,offering valuable insights for those seeking to capitalize on this growing market.Giulia Interesse AuthorI
89、nvestors with a better understanding of the leading trends in Chinas healthcare sector can move quickly and capitalize on opportunities in niche markets.These trends include the prevalence of digital healthcare,a shift in focus from treatment to prevention,increased health awareness,a growing rehabi
90、litation market,and rising demand for age-related healthcare services,reproductive technology,and chronic disease management.Chapter 2Leading trends shaping Chinas healthcare sector Epidemic surveillance and management gaining momentum in the post-COVID eraThe COVID-19 pandemic has had a lasting imp
91、act on healthcare systems worldwide,prompting a fundamental shift in the approach to public health.Chinas government has responded proactively by implementing measures to prevent and control the spread of epidemics,investing in public health infrastructure,digital health technologies,and expanding t
92、esting capabilities while improving data sharing and analysis.Chinas healthcare industry is witnessing the rise of various digital health technologies,including artificial intelligence(AI),big data analytics,and cloud computing,which are gaining momentum for epidemic surveillance and management.For
93、example,Alibaba Health,the countrys leading China Briefing Issue 200 March 202313online healthcare platform,has developed an AI-powered diagnostic system that can identify COVID-19 with 96 percent accuracy.The Chinese government has also launched a national platform for epidemic monitoring and early
94、 warning that integrates data from various sources,including hospitals,clinics,and laboratories,to facilitate real-time monitoring and analysis of infectious diseases.These initiatives showcase the governments dedication to utilizing digital health technologies to enhance epidemic surveillance and m
95、anagement.This trend is expected to continue in the post-COVID era.Preventative healthcare now taking center stageThe aging Chinese population has prompted a shift in focus from treatment to prevention.The government is promoting healthy lifestyles and encouraging people to take preventive measures
96、to avoid illnesses.This has led to a growing market for healthcare products and services that promote wellness and prevent diseases.As a result of this trend,wearables like fitness trackers,health watches,electrocardiogram watches,blood pressure monitors,and biosensors are gaining popularity.These d
97、evices enable individuals to monitor their health and detect potential health issues,such as irregular heartbeats or atrial fibrillation,which can then be shared directly with physicians for medical advice.Health awareness in young peopleThe trend of health-consciousness among young people in China
98、is expected to continue growing in the coming years.According to a Nielsen survey,70 percent of Chinese millennials are willing to pay more for healthy food,while 80 percent are willing to pay extra for healthcare products and services that help them maintain a healthy lifestyle.This has spurred the
99、 development of new healthcare products and services aimed at young people,including wearable devices that track fitness and health metrics,mobile apps that provide personalized health advice,and online platforms that connect users with healthcare professionals.In addition,young Chinese are increasi
100、ngly seeking health-related information online.A 2021 study revealed that topics,such as symptoms,pathology,pregnancy,and diet,are among the most searched on dedicated healthcare communities.Another noteworthy trend is the rising purchase of health insurance by young Chinese consumers,who prioritize
101、 health,sports,and wellness in their lifestyles,particularly in the wake of the latest waves of the COVID-19 pandemic.Rising demand for age-related healthcare servicesThe demand for healthcare services catering to the needs of Chinas aging population is on the rise.A report by the China National Com
102、mittee on Aging projects the number of individuals aged 65 and above to exceed 487 million by 2050,constituting over one-third of the total population.Due to the increasing medical requirements and care needs of the elderly,a new wave of healthcare products and services has emerged to cater to this
103、demographic.These include home healthcare services,elderly care facilities,and specialized medical devices,among others.Increasing demand for reproductive technologyThe demand for reproductive technology is on the rise in China due to multiple factors,including China Briefing Issue 200 March 202314d
104、elayed marriage and childbirth,environmental concerns,and a desire for multiple children amid declining fertility rates.Consequently,Chinas in-vitro fertilization market is expected to exceed US$2.8 billion by 2025.This includes healthcare products and services aimed at reproductive health,such as i
105、n vitro fertilization(IVF)services,fertility clinics,and supplements for reproductive health.Additionally,companies are working on new technologies,such as gene editing and artificial intelligence(AI)to enhance the effectiveness of reproductive technologies.Rehabilitation market is growingThe rehabi
106、litation market in China is growing,jointly driven by government support,an aging population,and an increase in the number of people with chronic diseases and disabilities.This trend is visible when observing the rising number of rehabilitation hospitals in China.As of 2021,there were 810 rehabilita
107、tion hospitals in the country,with 182 being public and 628 being from the private sector.Private hospitals make up the majority of Chinas rehabilitation hospital market,accounting for 77.53 percent.In direct correlation,the market size of Chinas rehabilitation medical devices has also seen a rapid
108、expansion.In 2021,the sector reached a value of RMB 45.03 billion(US$6.98 billion),representing a year-on-year increase of 17.6 percent.By the end of 2023,the market is estimated to further expand to reach RMB 61.57 billion(US$9.54 billion).Management of chronic diseases more popularThe management o
109、f chronic diseases is becoming increasingly popular in Chinas healthcare sector,as a growing number of people seek medical assistance for long-term illnesses.Chronic diseases like diabetes,hypertension,and cardiovascular diseases are among the leading causes of death in China,leading to a spike for
110、chronic disease management services.By 2026,the market is expected to exceed RMB 1 billion(US$144.96 million)with a CAGR of 10.77 percent between 2021 and 2026.Total number of rehabilitation hospitalsRevenue(Billion,RMB)Growth ratePrivate hospitalsPublic hospitalsSource:China Health Statistics Yearb
111、ook,2022Source:China Economic and Technological Research Institute,2022Number of Rehabilitation Hospitals in China,2010-2021Chinas Rehabilitation Medical Devices Market Growth,02020212022E2023E20064289055552637706739810
112、22.5024.4%19.2%14.7%17.6%13.5%20.5%28.0033.3738.2845.0351.1061.57182628 China Briefing Issue 200 March 202315The digital market for managing chronic conditions in China has also experienced significant growth,with a CAGR of 32.1 percent from 2016 to 2020,reaching RMB 176.1 billion(US$27.5 billion).T
113、he market is anticipated to continue expanding to reach RMB 800.1 billion(US$125.0 billion)in 2025 and RMB 1,808.5 billion(US$282.1 billion)in 2030,with CAGRs of 35.4 percent from 2020 to 2025 and 17.7 percent from 2025 to 2030.To address this trend,healthcare providers in China are developing new p
114、rograms and services.Hospitals are offering comprehensive management programs,including regular check-ups,symptom monitoring,and personalized treatment plans.Healthcare providers are also increasingly using technology to improve the delivery of chronic disease management services,such as remote pati
115、ent monitoring and telemedicine.Niche markets in Chinas healthcare sectorBiotech and biopharmaceuticals The biotech market in China is experiencing rapid growth and development with a focus on new drugs,therapies,and medical devices targeting specific diseases and patient populations.The governments
116、 Made in China 2025 plan aims to make China a global biotech leader by 2025 by providing funding for R&D,tax incentives for biotech companies,and streamlining the regulatory approval process.Collaborations with international biotech companies have also helped to fuel growth in the sector.The biophar
117、maceuticals industry is expected to see significant growth in China,with the market projected to increase by 135 percent from US$47.60 billion in 2020 to US$111.76 billion in 2025.Chinese biopharma companies have seen a rise in market capitalization from US$1 billion in 2016 to over US$200 billion i
118、n 2020.The potential of the market is demonstrated by the launch of 141 new drug and biotech companies from 2010 to 2020,twice the number launched in the previous decade.Digital healthcare marketThe COVID-19 pandemic served as a catalyst for the growth of Chinas digital healthcare industry,which had
119、 already been developing since the early 2010s.The pandemic put increased pressure on traditional medical infrastructure,leading to a spike in demand for online healthcare services.These services include virtual doctor consultations on mobile devices and computers.In fact,to reduce the risk of infec
120、tion,the Chinese government has actively promoted the use of remote medical services.The National Health Commission has issued guidelines to promote telemedicine development and the government has provided funding and incentives to support its growth.Regulations have also been relaxed to allow healt
121、hcare providers to offer telemedicine services across state lines,further promoting the industrys growth.Number of users(million)Source:China Business Intelligence Network,20261707810Users of Digital Health Platforms in China,2017 to 20222002020212022E China Briefing Issue 200
122、March 202316As a result,the number of users on Chinas digital healthcare platforms grew to 661 million in 2020,a year-on-year increase of 13.6 percent,and further to 707 million in 2021.With the aging population and other long-term trends,the adoption of online healthcare services is expected to con
123、tinue to grow in the future.According to a report by Research and Markets,the online healthcare market in China was valued at US$88.7 billion in 2022 and is projected to reach US$311.48 billion by 2026,with a CAGR of 36.9 percent.The online pharmacy market is also growing,with revenue estimated to h
124、ave reached almost US$7 billion in 2022 and projected to grow to US$15.7 billion by 2027,a CAGR of 16.8 percent.The number of online hospitals in China has quadrupled since 2019,reaching more than 1,900 by the end of 2021.The market for internet hospitals and online drug sales has grown significantl
125、y,with a year-on-year increase of around 44 percent and 52 percent,respectively,reaching approximately RMB223 billion(US$33.45 billion)and RMB36.8 billion(US$5.52 billion).Further,Chinese hospitals are partnering with technology companies,such as Alibaba and Tencent,to develop digital healthcare pla
126、tforms,which are helping to improve access to healthcare services,particularly in rural and underserved areas of the country.In the online pharmacy space,major players include JD Pharmacy,a subsidiary of e-commerce giant JD.com,and Alibaba Health.Wearables and health monitoringThe wearables and heal
127、th monitoring sector in China is expected to achieve a market size of US$4.1 billion by 2026,at a CAGR of 21 percent.Wearable devices like smartwatches,fitness trackers,and health monitors are gaining popularity among Chinese consumers,who are using them to track their health and fitness,monitor chr
128、onic conditions,and manage medication.According to data released by IDC,by the end of 2021,the top five brands for wearables and health monitoring devices in China were Huawei,Xiaomi,Apple,OPPO,and BBK,with market shares of 22.3 percent,19.5 percent,19.2 percent,4.6 percent,and 4.0 percent,respectiv
129、ely.In particular,wearable devices,such as blood pressure monitors,glucose monitors,and heart rate monitors,are becoming increasingly popular among elderly consumers,who use them to monitor their health and detect potential health concerns before they become serious.AI healthcareChina has been makin
130、g rapid strides in the field of AI healthcare in recent years,backed by strong government support and increasing private investment.Chinas AI healthcare market reached a value of US$2.6 billion in 2020 and is expected to grow at a CAGR of 40 percent between 2020 and 2025.One of the key areas where A
131、I is being deployed in healthcare in China is medical imaging.AI Major Players in Chinas Wearables and Health Monitoring Industry by Market ShareHuawei22.30%Xiaomi19.50%Apple19.20%Oppo4.60%BBK4.00%Source:IDC Report,2021 China Briefing Issue 200 March 202317Source:Deep research and trend prediction r
132、eport on the current status of the Chinese medical artificial intelligence industry(2023-2029)100 million RMB43.266.8117.918146.446.4Chinas AI Healthcare Market Size and Growth Rate,2016 to 202021algorithms can analyze medical images,such as X-rays,CT scans,and MRI scans,much f
133、aster and with higher accuracy than human radiologists,thereby helping doctors make more accurate diagnoses and treatment plans.In fact,China has already deployed AI-powered medical imaging systems on a large scale.For example,the company Ping An Healthcare and Technology has deployed an AI-powered
134、medical imaging system in over 100 hospitals across China,which has helped doctors analyze more than 13 million medical images.Another area where AI is being used in healthcare in China is drug discovery.China has a large and growing biotech industry,and AI-powered drug discovery is seen as a key ar
135、ea of focus for the industrys growth.By using AI to analyze vast amounts of data on molecular structures,chemical compounds,and biological interactions,researchers can identify potential drug candidates much faster and more accurately than traditional methods.Several Chinese startups are already wor
136、king on AI-powered drug discovery,and the Chinese government has also launched initiatives to support this area of research.ConclusionChinas healthcare industry is undergoing a rapid transformation that is expected to drive significant growth in the coming decade.With strong government support,an ex
137、panding middle class,and advances in medical technology,healthcare professionals and investors have numerous opportunities to enter the Chinese market.Key trends in the industry include the adoption of digital health technologies for epidemic surveillance and management,as well as a growing focus on
138、 preventative healthcare.Wearables and other health-monitoring devices are also gaining popularity among individuals,empowering them to take control of their health and detect potential health issues early.Overall,the future of Chinas healthcare industry is promising,and those who seize the trends a
139、nd opportunities in this expanding market are likely to experience significant success in the years ahead.RELATED READINGUnderstanding Chinas Internet Healthcare and Opportunities for InvestorsChina Briefing Article June 17,2022Chinas health industry has marched into the digital era,facilitating cha
140、nges for many hospitals and private entities in the sector.Internet healthcare,featuring online medical consultation,is becoming a new reality for more and more Chinese citizens.The sectors development has been greatly boosted by the COVID-19 pandemic,receiving close attention from both government a
141、uthorities and technology firms to expand market access.Meanwhile,as Chinas elderly population is steadily increasing alongside the public demand for high quality health services,internet healthcare may provide solutions in the near term,raising opportunities for foreign investments.READ MORE China
142、Briefing Issue 200 March 202318Key Considerations for Entering Chinas Healthcare MarketChinas healthcare market is continuously growing and dynamic,making it one of the most attractive in the world.However,the market is heavily regulated,with high compliance requirements and strong competition.For f
143、oreign investors to successfully enter this market,it is crucial to understand the relevant industry policies and compliance requirements and develop a well-tailored strategy.This chapter outlines key considerations for entering Chinas healthcare market and summarizes critical success factors.Is Chi
144、nas healthcare sector open to foreign investment?When investing in Chinas healthcare market,one of the first considerations should be whether the specific sector they want to enter allows foreign investment.Qian ZhouAuthorThe healthcare market in China presents an alluring opportunity for global inv
145、estors,but it is highly regulated and fiercely competitive.To achieve success,businesses must skillfully navigate the evolving regulatory and compliance landscape,strategically plan their approach,and remain proactive and adaptable to maintain their competitive advantage and respond effectively to m
146、arket trends.Chapter 3Despite Chinas gradual liberalization of its healthcare industry to allow foreign participation by removing items from the Special Administrative Measures(Negative List)for Foreign Investment Access(hereafter referred to as the FI Negative List)and adding items to the Catalogue
147、 of Encouraged Industries for Foreign Investment(hereafter referred to as the FI Encouraged Catalogue),there are still certain sectors that remain off-limits or restricted to foreign investment.Medical institutionsForeign investment in medical institutions is restricted to joint venture structures a
148、nd cooperation with Chinese companies,unless where special approval has been granted.An exemption exists for Hong Kong entities and eligible Hong Kong Service Suppliers,who are eligible to establish wholly foreign-owned medical institutions if they meet the requisite conditions under the Mainland an
149、d Hong Kong Closer Economic Partnership Arrangement(CEPA).Additionally,in 2014,wholly foreign-China Briefing Issue 200 March 202319owned hospitals were once allowed in seven cities including Beijing,Tianjin,Shanghai,Jiangsu,Fujian,Guangdong,and Hainan on a pilot basis.Sino-foreign joint venture hosp
150、itals must comply with the Interim Measures on the Administration of Sino-Foreign Joint Venture and Cooperative Medical Institutions,which stipulate that foreign investors shareholding ratio or equity in the joint venture shall not exceed 70 percent.The total investment must be at least RMB 20 milli
151、on(Approx.US$2.9 million),and the joint ventures operation term cannot exceed 20 years.In practice,some foreign investors have managed to break through these restrictions on foreign ownership ratio or even gain complete control over domestic medical institutions through historical investment,domesti
152、c reinvestment,VIE arrangement,or custody agreement.However,they may face obstacles when changing or renewing their operational qualifications,such as the Practicing License of Medical Institutions.Furthermore,in the case of subsequent shareholding changes,regulatory authorities may review the actua
153、l foreign shareholding ratio based on the look-through approach”(穿透式审查,meaning tracing to the ultimate shareholder by looking through the multiple layers of shareholding structure based on the current effective law at that time),which may require foreign investors to reduce their ownership.Therefore
154、,foreign investors should exercise caution when planning their investment structure.Human stem cells and genetic technologyAnother healthcare sector that is restricted to foreign investment is human stem cell and genetic technology.According to the latest FI Negative List,foreign investors are curre
155、ntly not allowed to directly invest in the development and application of human stem cells and gene diagnosis and treatment technologies.However,foreign investors are encouraged to invest in the manufacturing of high-throughput gene sequencing systems,according to the latest FI Encouraged Catalogue.
156、Foreign investors are also generally not restricted from engaging in the import and export,production,sales,and research and development of genetic testing equipment.On the other hand,in accordance with the Regulations of the Peoples Republic of China on the Administration of Human Genetic Resources
157、,foreign investors can cooperate with domestic institutions in scientific research related to stem cell and/or genetic diagnosis and treatment,provided that certain requirements are met,and regulatory approvals are obtained.They can also grant licenses to domestic institutions for the technological
158、development and sale of genetic diagnostics and/or stem cell products owned by them.Although there are established pathways for foreign investment in the sector,foreign investors may still encounter challenges.For instance,it can be challenging to clearly distinguish between the development of genet
159、ic testing equipment and the research and development of genetic testing technology in practice.Consequently,some activities of genetic testing equipment research and development enterprises may be classified as the application of genetic diagnosis and treatment technology,thereby prohibiting foreig
160、n investment.To avoid such complications,foreign investors are advised to communicate with relevant authorities in advance.Traditional Chinese medicineForeign investors are prohibited to invest in the application of steaming,frying,moxibustion,calcination,and other processing techniques of tradition
161、al Chinese medicine(TCM)decoction China Briefing Issue 200 March 202320pieces,as well as the production of confidential prescription products of proprietary Chinese medicines.However,such restrictions do not exist in Chinas 21 free trade zones.Pharmaceutical approval and licensingIn the pharmaceutic
162、al area,depending on their specific business scope and business type,different certifications and qualifications are required:For businesses engaging in pharmaceutical R&D,they will need to obtain a Good Laboratory Practices for Nonclinical Drug Research(GLP)certificate issued by the National Medica
163、l Products Administration(NMPA)for doing preclinical trial;a record-filing with local health bureau for the use of pathogenic microbiology and an approval from local department of science and technology for use of experimental animals in laboratories;a Radiation Safety Permit from local environmenta
164、l protection bureau if the drug R&D process involving radiative materials;and import-export related licensing and approvals if the drug R&D involves in imported raw materials.For businesses engaging in pharmaceutical manufacturing,they will need to apply for a Drug Manufacturing License from provinc
165、ial NMPA and then comply with the Good Manufacturing Practices(GMP)standards.They also need to obtain a Work Safety License for the production activities,and relevant import-export licenses if needed.For businesses engaging in drug supplying and trading,they will need to apply for a Drug Trading Lic
166、ense and comply with the pharmaceutical Good Supply Practice(GSP)standards.Medical devices approval and licensingMedical devices in China are subject to classified management:medical devices are divided into three classes based on the level of risk they present to patients or users.Class I is the lo
167、west risk class and is subject to record-filing management,which is comparatively easier,and Class II and Class III are the higher risk classes and are subject to product Beyond these three sectors medical institutions,human stem cell and genetic diagnosis and treatment technology,and TCM other heal
168、thcare sectors are mostly open to foreign investment in China.In fact,foreign investment is actively encouraged in many healthcare areas,such as the manufacturing of new compound drugs or drugs with active ingredients,researching and developing(R&D)and manufacturing of cell therapy drugs(excluding a
169、reas where foreign investment is prohibited),manufacturing of dental implant systems for implant repair in patients with bone loss,postpartum maternal and child services in maternity centers,and rehabilitation institutes for autistic children,to name a few.Foreign investors with expertise and a stro
170、ng presence in a particular area should confirm whether their business falls within these encouraged sectors to benefit from corresponding investment facilitations and receive preferential land and tax incentives.Approval and licensingThe healthcare sector has always been subject to stringent regula
171、tions as the quality of medical services and healthcare products directly impact the safety and well-being of individuals.Recent efforts have been made to simplify and streamline administrative procedures in the healthcare industry,as part of medical reforms aimed at encouraging social capital,inclu
172、ding foreign investment,to participate in providing diversified healthcare services.However,relevant market players still need to obtain various qualifications and fulfil registration and approval procedures to demonstrate their technical capabilities and ensure compliance with regulations.China Bri
173、efing Issue 200 March 202321Foreign investors engaging in relevant sectors are suggested to have a thorough understanding of the qualification,certificates,and approval requirements in advance and consult with experience local agencies for estimating the time and cost.registration management,which i
174、nvolves a longer and more rigorous process.For example,Class II and Class III medical devices are subject to stricter clinical assessment requirement and higher quality management system scrutiny.The classification of medical devices can be found in the Medical Device Classification Catalogue,the la
175、test version of which came into effect on August 1,2018,and was slightly revised in 2020 and 2022.To name a few,the“liquid dressing and paste dressing that is not sterile and acts as a physical barrier by forming a protective layer on the surface of the wound,and is used for the care of minor wounds
176、,abrasions,cuts and other superficial wounds and surrounding skin”has been changed from Class I management to Class II management,and the“radiofrequency therapeutic instrument and radiofrequency skin therapeutic instrument products”has been changed from Class II management to Class III management.Re
177、gistrants of domestic and imported Class I medical devices only have to record-file with the municipal level Medical Product Administration(MPA)or the NMPA.Domestic Class II registrants must be examined and approved by provincial-level MPA.And registrants of imported Class II and Class III medical d
178、evices and domestic Class III medical devices must be examined and approved by the NMPA.Class I device record-filing usually takes about one month,while Class II device registration takes 4-12 months and Class III registrations can take 12-36 months.Upon registration,the business will obtain a Medic
179、al Device Registration Certificate for relevant Class II and Class III medical devices.Also,businesses will need to file a record with local NMPAs for trading Class II medical devices while they need to obtain an approval for trading Class III medical devices.Approval and licensing of medical instit
180、utionsAs for setting up medical institutions,foreign investors will need to obtain an Approval for the Establishment of Medical Institutions and a Practicing License of Medical Institutions from local health authorities.Medical institutions will additionally need to obtain multiple licenses based on
181、 their business scope,such as the license for radiological diagnosis and treatment,license for maternal and infant health technical service institutions,license for occupational health examination and diagnosis institutions,and license for purchase and use of narcotic drugs and category I psychotrop
182、ic drugs.However,under the“many-in-one”reform,most of these post-establishment licenses,except the Large Medical Equipment Configuration License,have been integrated into the Practicing License of Medical Institutions.That is to say,upon getting approval for relevant applications,the authority in ch
183、arge will affix relevant information on the Practicing License of Medical Institutions,rather than issuing separate licenses.Two-invoice systemThe“two-invoice system”means that during the distribution process from drug manufacturer to hospital,only two value-added tax invoices(or fapiao)may be issue
184、d.The manufacturer issues a first invoice to the distributor,while the distributor China Briefing Issue 200 March 202322issues a second invoice to the hospital or medical service provider.Unlike the previous system where drug distribution chains were typically comprised of manufacturers and multiple
185、 levels of distributors,the two-invoice system allows only one level of commissioned distributor in the procurement chain.First piloted in selected provinces in 2016,this program was expanded nationwide in 2017 and 2018 for drug distribution.The two-invoice system has also been expanded to cover cer
186、tain categories of medical devices since 2018,such as the“high-value medical consumables”.The“two invoices system”is designed to streamline pharmaceutical distribution channels,reduce the cost of pharmaceuticals,and prevent corruption.But in practice,the system has changed the way manufacturers(impo
187、rters),distributors,sales,and compliance teams work in the pharma industry from both business and tax perspectives.To ensure compliance and enhance competitiveness in this evolving system,relevant businesses must transition from a hierarchical to a flat structure in the distribution channels of phar
188、maceutical products and integrate the supply chain.This not only challenges enterprises to effectively collaborate and manage upstream and downstream business partners but also increases the complexity of internal operational management.In light of this,enterprises are advised to seek professional a
189、ssistance in advance,and implement appropriate supply chain management systems and tools.Further,under the two-invoice system,pharmaceutical distributors will face higher financial pressure as they have to deal with the long payback period of hospital and medical institutions alone,rather than shari
190、ng with other distributors.Companies are advised to make plans for cash flow management as early as possible.In addition,pharmaceutical companies must be mindful of their pricing strategies,as the difference in pricing between the hospital purchase price and the manufacturers(or importers)ex-factory
191、 price not only affects the manufacturers(or importers)margins but also impacts their VAT payable.Medical advertising Medical advertisements have become increasingly important in boosting the sales of related medical products in China,given the highly competitive market and rapid growth of the platf
192、orm economy.However,due to the close connection between medical products and services and consumer health,medical advertising is subject to higher compliance requirements and scrutiny than general advertising.In April 2021,market supervision administrations across the country launched special campai
193、gns to target illegal advertising practices in medical treatment,drugs,health food,and medical beauty,including unauthorized medical advertising,exaggerated claims,and false advertisements.Furthermore,China has recently revised several laws and regulations related to medical advertising,such as the
194、Advertisement Law and the Regulations on the Supervision and Administration of Medical Devices,which have established stricter compliance standards,increased penalties for non-compliance,and thereby increased the costs of non-compliance for relevant enterprises.Crackdown on corruption in the healthc
195、are sectorBusinesses operating in the healthcare industry should also pay attention to anti-corruption management,as China sees corruption in the medical fields as the one of the main factors China Briefing Issue 200 March 202323As crackdowns on illegal medical advertising are likely to persist in t
196、he near future,it is important for investors to consider medical advertising regulations when developing their overall compliance system.This may include implementing qualified professional services,providing proper training,establishing a well-developed internal control system,and conducting regula
197、r compliance audits to avoid potential penalties and reputational harm to the business.that undermine the reliability and efficiency of the countrys medical system.The government has taken a strong stance against anti-competitive behaviors and corruption in the medical field,leading to increased scr
198、utiny and low tolerance for such actions.In August 2020,the Central Supervision Commission(CSC)issued a notice emphasizing the importance of strict anti-corruption investigations in the medical field.In October of the same year,the CSC issued another statement calling for the investigation of power-
199、money transactions,the establishment of a list of dishonest individuals,and the cutting off of the benefit chain of medical bribery.Companies in the healthcare sector are thus at a higher risk of being implicated in commercial bribery and subject to administrative or even criminal penalties.Therefor
200、e,it is crucial for relevant enterprises to include anti-corruption measures as an essential part of their overall compliance system.They should also continuously monitor the authenticity,rationality,and verifiability of their employees behavior in subsequent marketing processes.Key takeawaysChinas
201、healthcare sector is highly regulated and competitive and is among the most promising markets in the global healthcare sector.To succeed in this market,foreign investors must be proactive and agile,planning strategically,acting quickly,and working diligently.In addition to the considerations mention
202、ed above,foreign investors should stay abreast of the latest policies,not only those related to the administration and compliance of the healthcare sector,but also those outlining the governments industry priorities.They should adjust their strategy and operations accordingly.Furthermore,innovation
203、is a key advantage of foreign investors,especially those with expertise in a particular area,but smaller in size.It is wise to capitalize on their creativity by customizing their products to meet the needs of the Chinese market and addressing existing challenges.They should also develop a comprehens
204、ive intellectual property strategy early on to maintain their competitive edge.Finally,foreign investors who are unfamiliar with the Chinese market are advised to partner with local companies and hire professional agencies to facilitate market entry and compliance management.However,they should cond
205、uct due diligence to verify the reliability and qualifications of potential local partners and professional agencies.ESTABLISHING OPERATIONS AND MANAGING YOUR INVESTMENTForeign investors keen to capitalize on Chinas healthcare boom should note the highly competitive and regulated landscape of the se
206、ctor.Dezan Shiras multi-disciplinary advisory taskforce is equipped to advise clients throughout the lifecycle of their business projects,enabling them to mitigate risks and maximize their business options.EXPLORE MOREScan this QR codeVisit our mobile page andget the latest updates investors news an
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