Our Commercial Development Managers Kerstin Holata and Valerie Morris recently attended the Australia China Health Summit in Melbourne, run by partners AusBiotech and the Australia China Business Council (ACBC). The focus of this summit was on sharing knowledge and gaining expert views on successfully creating linkages and developing partnerships in China.
While overall growth in China is slowing to a ‘new normal’ of approximately 7% GDP (albeit from a large base of over $3 trillion), this is unlikely to apply to the health care industry. The prognosis for the health care sector in China is good in terms of demand and government policy. Health is one of the primary strategic focusses of the Chinese government as it faces significant challenges associated with an expanding middle class and ageing population with increased life expectancies, as a result of its 4:2:1 ratios (4 grandparents, cared for by two parents, cared for by 1 child).
It is estimated that one third of the Chinese population will be 65+ by 2050. This forecast has resulted in an increased emphasis by the Chinese government to increase services in the hospital and aged care sector, representing a significant opportunity to overseas companies wanting to do business in China.
The recently signed free trade agreement will provide a first mover advantage to Australia for the establishment of hospitals and aged care facilities, as well as promoting the sale of pharmaceuticals and nutraceuticals in China through the abolishment of tariffs ranging as high as 25% currently. For more information, you can view the free trade agreement at the DFAT website.
This summit was an excellent educational and networking opportunity, bringing together key stakeholders of the Australian and international sector to discuss the health industry and opportunities afforded by the Australia/China relationship. Topics on the agenda for the Summit included implications of the Free Trade Agreement, an overview of the Chinese health market, practical information for engaging with China, medical research and commercialisation, and health services.