Country Industry Forecast: The Chinese Healthcare Industry

Provision for reliable healthcare for the population has been the main priority of the Chinese Government. Though currently transitioning from a planned economy to a market-oriented one, the government remains the primary healthcare provider. With the percentage of aging population on the rise, there is ample scope for developing new medicines and medical devices. The country is expected to witness massive imports of technologically advanced medical equipment mainly catering to the elderly.

China's accession to the WTO has prompted radical measures to reduce government intervention and increased access to its markets. The country is expected to be a forerunner in attracting foreign direct investment (FDI) among emerging nations. Reduction in tariffs is likely to have a significant impact on external trade. Consolidation in the pharmaceuticals and drugs segment through mergers, acquisitions, and takeovers of Chinese pharmaceutical companies by foreign firms is likely in the next few years. China is expected to be an attractive destination for the manufacture of high-end technology products by foreign companies due to the low-cost base.

This research on the Chinese healthcare industry analyzes the prevalent political climate, related policy changes, and shifting economic trends. The base year for the research is 2001 and the forecast period is from 2002 to 2006. It also provides in-depth assessment of specific industry segments and evaluations of growth patterns and prospects. It is an invaluable source for decision makers to identify new market opportunities, establish strategic alliances, and evaluate the industry potential in China. The study assists in conducting further in-depth micro research and arriving at critical decisions on mergers and acquisitions. It also aids companies to assess the impact of non-market forces while providing vital inputs to formulate contingency plans.