Investing in health sector in China

The Chinese population is aging, but also becoming richer. China is therefore seeking to improve its health systems. Health is therefore a promising sector for business in China. However, this area has some problems, notably in regulation, which lead to some corruption in the environment.

Moreover, the evolution of the health system must also adapt to the changing society. Not only is the population aging, it is also urbanized. Thus, up to 80% of government expenditure on health is directed to urban populations. However, it is exaggerated because, although urbanized, another 55% of the Chinese population lives in the countryside, which poses a problem for rural populations to access healthcare.

In any case, people’s health spending should almost double by 2025, from 9% of a Chinese’s budget in 2009 to 16% in 2025. This represents very good opportunities for the business.

As far as business is concerned, it is important, when embarking on the health sector, not to forget that some Chinese companies are competitors not to denigrate. Indeed traditional Chinese medicine returning to fashion, is still very important in some families, the Chinese do not always trust the foreign health systems.