04 | 2017 | HEALTH AND LIFE SCIENCES

China’s “New Booming Industries”

China has become one of the largest healthcare markets in the world but healthcare spending still only accounts for approximately 5.5% of the country’s GDP. With a growing consciousness among the population regarding health and healthcare, the Chinese government has issued a series of policies aimed at reforming the national healthcare system and establishing a safer and more stable system. On one hand China’s government encourages private capital investment into the so far mostly state-owned and operated healthcare industry. This has resulted in a steady growth in foreign invested, private hospitals that offer high quality services, a comfortable environment and more innovative approaches, when compared to public clinics.On the other hand, it also encourages local production of pharmaceutical products which poses a challenge for global players. Large multinational pharmaceutical companies have hence joint forces with local companies not only in production but also in R&D efforts to ensure faster product launches, easier product registration processes, lower costs, as well as more targeted products.

In this edition of German Chamber Ticker, we will explore how other, seemingly “new” industries have recently become big pillars in the Chinese economy and what that might mean for society in general. We will also shed light on the growing pharmaceutical industry in China and the steps large multinational players in the industry have been taking to ensure their continued success in the country. Last but not least, we will take a closer look at the successes and fallbacks of digitalization in the healthcare industry and what the future of the industry could mean for tech companies. We hope you enjoy reading!

Yours sincerely,

Stefan Rosenbohm

 

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