In a previous article on trade with China, I stated that many Israeli companies could have strong potential in the Chinese market. Over the next several days I will provide snap-shots of some of the most rapidly growing industry groups in China, which I believe could be targeted by Israeli businesses . This time:
With an updated population of 1.4 billion, China has been the most populous country in the world. Chinese people are always challenged by healthcare issues among which difficult access and high fee are the two major problems in China’s healthcare industry. China’s current healthcare system is primarily composed of large public non-profit hospitals. They are supplemented by approximately 4, 000 smaller private for-profit hospitals.
China’s public hospitals are generally less sophisticated in their managerial systems and bureaucratic in their organizational structure, with weak planning and organizational efficiency.
Moreover, they are not operated under the normal business principles found in international hospitals. Therefore, their capability to respond to market and social demands is rather limited. Nevertheless, China is ushering in aging society and baby boom at present, the advanced healthcare services are in great demand, according to McKinsey, China’s healthcare spending is projected to grow from $357 billion in 2011 to $1 trillion in 2020, but China is short of savvy doctors with professional spirit, even though it has 600, 000 medical students graduated from university or college each year.
Earlier, China‘s Ministry of Health (MOH) released its plan to reform the country‘s healthcare system called Healthy China 2020 which seeks to provide universal healthcare and equal access for all of China‘s 1.4 billion people in 2020. Pivotal subsectors of this industry include pharmaceuticals, biotechnology, medical devices, health IT, medical services, and health administration, with the first three ones accounting for nearly 75% of the market.
Israel has advanced medical devices and world-renowned doctors, so China will be a good market for the ones who can provide sophisticated healthcare management and methods and good solutions to train Chinese young doctors.