Healthcare in China

China’s healthcare industry continues to expand at an amazing pace, as the related spending is projected to reach $2.3 trillion by 2030. The promising outlook for the healthcare industry in China is fueled by favorable demographic trends, growing urbanization, and increasing prevalence of certain diseases like cancer and diabetes, rising disposal income and becoming more health conscious.

The expected healthy growth of the healthcare industry in China also reflects the government’s focus on healthcare as both a social priority (as seen in the 2009 healthcare reform) and a strategic measure (the impact of the 12th Five-Year Plan on the biomedical industry).

Healthcare expenditures in China have more than doubled — from $156 billion in 2006 to $357 billion in 2011 — inching up and is closer to account for 5% of the country’s GDP. From pharmaceuticals, medical devices to traditional Chinese medicine, almost every health sector has benefited from this trend. Hence, it is not surprising to see that multinationals are attempting to capture some of these opportunities, but long-term success for these companies is by no means guaranteed.

Abundant opportunity in the expanding healthcare industry in China is attracting new players from far afield, including top-50 retailers, leading telecom companies, and startups backed by venture capital. These established players and new entrants of the healthcare industry need to be innovative and collaborate with each other and their Chinese business partners to deal with changes to the industry. The $9.59 trillion global healthcare market is receptive to innovations that can complement or replace conventional person-to-person medical interactions, providing healthcare services regardless the locations of the patients. In both developed and developing countries, new players have founded pathways into virtual healthcare, more affordable and convenient care delivery options, as well as clinics that offer flexible public health services.

From pharmaceuticals, medical products, to healthcare services in general, China is becoming an attractive market in the global healthcare industry owing to its expected fast-pace of growth.