In the midst of an aging population with flourishing personal finances and a rapidly developing private medical industry, China’s healthcare sector will become a $1 trillion-a-year business by 2020, according to consulting firm McKinsey & Company.
The pressure of rising prices within the foreign distribution channel’s have hurt China’s ability to deliver affordable healthcare to its citizens. Chinese citizens typically have to pay three times more than its Western neighbors to acquire medical technologies and drugs. The time is now for the Chinese government to develop medical technologies in China, by China, for China. Which also leads to massive investment opportunities.
China currently has numerous cash-rich VC firms, but not enough domestic options for biotech investment. With Chinese companies now looking to acquire technologies for use in the Chinese market right across the industrial spectrum, this is driving ever higher levels of cross-border investments.