{"id":9868,"date":"2024-11-26T09:45:00","date_gmt":"2024-11-26T08:45:00","guid":{"rendered":"https:\/\/eurotext.de\/en\/?p=9868"},"modified":"2024-11-26T09:45:00","modified_gmt":"2024-11-26T08:45:00","slug":"the-healthcare-market-in-china","status":"publish","type":"post","link":"https:\/\/eurotext.de\/en\/blog\/the-healthcare-market-in-china\/","title":{"rendered":"The healthcare market in China"},"content":{"rendered":"

China\u2019s healthcare market is undeniably attractive due to its immense size and rapid growth. However, its complexity and regulatory challenges make it a difficult landscape to navigate. In our latest blog, we explore essential business strategies for overcoming these hurdles and highlight how specialized companies can successfully establish themselves in this dynamic market.<\/p>\n

Population<\/h2>\n

With a population of over 1.4\u00a0billion, China is the world\u2019s second most populous country after India and the third largest by total area. Life expectancy has been rising continuously to reach 77.6\u00a0years, compared to 81.9\u00a0years in the UK<\/a>. Child mortality is also steadily declining (6.6 per 1,000\u00a0live births in 2022). Currently, only one in six Chinese is over 65\u00a0years old, compared to around one in five in the UK. But this China\u2019s age structure is undergoing a major shift: Despite the relaxation of China\u2019s family planning policy, which now permits families to have up to three children, projections show that by 2050, nearly one third of the population will be over the age of 65.<\/p>\n

Rising prosperity in China is also fueling lifestyle-related illnesses. While only 8.3% of the population is severely overweight, cases of obesity, hypertension and diabetes are steadily climbing. In 2020, one in five Chinese smoked tobacco. Leading causes of death include stroke, ischemic heart disease, chronic obstructive pulmonary disease and cancer, particularly of the trachea, bronchi, lungs and stomach.<\/p>\n

Mental health in China has seen significant advancements in recent years. Once a taboo, psychiatric disorders are now addressed more openly, especially in major metropolitan areas. WHO estimates indicate that 54\u00a0million Chinese experience depression, while 41\u00a0million face anxiety disorders. A recent nationwide study revealed a lifetime prevalence of mental disorders in adults of 16.6%. The government is actively working to enhance research, development and clinical care in mental health, reflecting growing awareness and investment in this vital area of public health.<\/p>\n

Health market<\/h2>\n

The Chinese healthcare system combines state oversight with market-driven elements. It relies on multiple state health insurance programs tailored to different population groups, collectively covering 95% of the population and ensuring access to basic healthcare. However, many diagnostic services and treatments are excluded or require high co-payments. As a result, private supplementary insurance is growing in popularity, offering expanded coverage and financial relief.<\/p>\n

China\u2019s central health authority is the National Health Commission (NHC), responsible for shaping national health policy, driving healthcare reforms and overseeing the public healthcare system. State hospitals provide the bulk of healthcare, accounting for 90% of the system, while private clinics, mainly in urban areas, are playing an increasingly prominent role.<\/p>\n

Traditional Chinese medicine (TCM), which includes acupuncture, herbal medicine and massage, continues to be a vital part of the healthcare system. Offered alongside Western medicine in many facilities, TCM is subsidized by the government, with the State Administration of Traditional Chinese Medicine (SATCM) overseeing its regulation and development.<\/p>\n

Despite this extensive system, China spends relatively little on healthcare \u2013 just 7.1% of GDP in 2022, compared to 10.9% in the UK. However, healthcare spending is expected to rise significantly, with projections suggesting it will reach 9.1% of GDP by 2035.<\/p>\n

Trends<\/h2>\n

The Chinese government is focusing on comprehensive healthcare reforms aimed at improving access and quality. Key priorities include enhancing primary care, boosting financing, promoting preventive health and fostering digitalization. A major goal is to reduce health disparities between urban and rural areas, ensuring more equitable healthcare access across the country.<\/p>\n

The Chinese healthcare market presents vast opportunities, particularly in medical technology, pharmaceuticals and digital health. With an aging population and rising chronic disease rates, demand for innovative products and services is growing rapidly. By 2025, the pharmaceutical market is expected to reach $368 billion, while the medical devices market will grow to $210 billion.<\/p>\n

As part of its reform efforts, the government plans to upgrade over 20% of community health centers into regional hospitals by 2025, increasing demand for diagnostic and treatment medical devices. There is also a growing need for niche products, such as in dental medicine, and advanced technologies like MRI scanners and surgical robots. However, the government\u2019s \u201cbuy local\u201d strategy and rising domestic competition present challenges for foreign companies. To remain competitive, strong local partnerships and tailored product strategies are crucial.<\/p>\n

Digital health, primarily AI applications, is also experiencing rapid growth. Hospital networks are generating large datasets for big-data-driven innovations, and telemedicine has expanded, reaching nearly all regions of the country. The mental health sector is thriving, especially with mobile apps and online therapy platforms, which provide discreet support, particularly in rural areas. And the recent relaxation of clinical evaluation requirements for medical software has simplified the approval process, opening up new market access opportunities for IT and app providers.<\/p>\n

Legal and regulatory conditions<\/h2>\n

In China, the approval of medications such as insulin, antidepressants or painkillers is managed by the National Medical Products Administration (NMPA), which follows international norms like Good Clinical Practice (GCP) and Good Manufacturing Practice (GMP). Manufacturers must submit preclinical data from laboratory or animal testing, and once the NMPA approves the initial application, clinical studies proceed in three phases to prove the safety, efficacy and quality of the product. After completing the studies, the NMPA evaluates the data submitted and conducts on-site inspections. For innovative drugs, expedited processes like the \u201cPriority Review and Approval\u201d system are available. If successful, market approval is granted, often accompanied by price negotiations and potential inclusion in the National Reimbursement Drug List (NRDL).<\/p>\n

The NMPA also oversees the approval of medical devices, such as health apps, wound dressings or surgical robots. These devices are classified into three categories based on risk: Class I (low risk), Class II and Class III (medium to high risk). While Class I devices require simple registration, Classes\u00a0II and III demand more extensive testing and clinical data. Manufacturers must demonstrate the safety, efficacy and quality of their products, with additional studies required for Class III devices. The NMPA then checks the technical data and production standards, ensuring compliance with international guidelines like ISO 13485.<\/p>\n

International health market<\/h2>\n

British pharmaceutical companies aiming to enter the Chinese market must secure NMPA approval, ensuring compliance with international standards like GCP and GMP. To market their products in China, they will also need a local presence, either through a registered importer or a local branch. Beyond this, all documentation must be translated into Chinese and adapted to local regulatory and cultural standards. Partnering with a local entity can significantly smooth market entry and ensure regulatory compliance.<\/p>\n

The approval process for medical devices follows similar procedures, with manufacturers needing to demonstrate safety, efficacy and quality. This includes submitting detailed technical documentation and often undergoing an on-site inspection of production facilities. Over recent years, China has also increased scrutiny of quality management systems in particular, tightening obligations for both documentation and adherence to guidelines.<\/p>\n

Internationalization<\/h2>\n

Translations and localizations play a critical role in navigating this highly regulated healthcare market. The translation of technical documentation, approval documents and marketing materials demands precise terminology and a deep understanding of regulatory requirements. Experienced language service providers<\/a> with expertise in medicine and technology can help companies meet these standards and adapt their local market strategies.<\/p>\n

Accurate translations<\/a> are essential for training the medical workforce, ensuring they understand clinical guidelines, safety protocols and other vital information. Well-translated materials facilitate the proper use of medical devices, enhance communication and ultimately improve patient care outcomes. Professional localization also promotes intercultural knowledge exchange. Information must not only be linguistically accurate but also culturally appropriate, considering Chinese customs, communication preferences and expectations. This approach helps prevent misunderstandings and builds trust with customers, partners and regulatory authorities.<\/p>\n

As a multi-ethnic country, China<\/a> boasts a rich diversity of languages. The official language, Standard Chinese, is based on Mandarin and is spoken by over 1.1\u00a0billion people worldwide. Some regional languages are also officially recognized, for instance Cantonese and Portuguese are used in Macau, while Cantonese and English are common in Hong Kong.<\/p>\n

In addition to these, several regional languages like Shanghainese (Wu), Hakka (in southern provinces), Min (spoken in Fujian and Taiwan) as well as Gan and Xiang (in Jiangxi and Hunan) are widely spoken in daily life, media and culture, while Standard Chinese serves as the common language for official communication across the country. Significant minority languages in China include Tibetan, Uyghur, Mongolian and Korean, which are spoken by various ethnic groups.<\/p>\n

An important aspect of Chinese writing is the use of different character systems: simplified characters are used in mainland China and Singapore, while traditional characters are prevalent in Taiwan, Hong Kong and Macau. This distinction plays a key role when adapting written content for different regions.<\/p>\n

Summary<\/h2>\n

Driven by the growing middle class and increasing demand for high-quality healthcare, the Chinese health market presents vast opportunities. However, hurdles such as complex regulatory requirements, high market entry barriers and cultural differences require strategic adjustments and local partnerships to ensure long-term success. With China\u2019s rapidly changing regulatory landscape, businesses are well advised to regularly review and adapt their strategies to stay compliant and competitive.<\/p>\n

Professional localization and translation are crucial for success in China. Accurate technical terminology, combined with cultural sensitivity, allows companies to strengthen their market position, reduce liability risks and ensure legally compliant and efficient communication. This careful approach helps companies build trust and avoid costly mistakes, positioning them for sustainable growth in this highly competitive market.<\/p>\n

References<\/h2>\n