Amidst a number of negative healthcare trends in China including competitive locally made products that compete with the West, reduced drug and device reimbursement, the pending Biosecure Act, and increased political frictions, China has announced 2 new policies to help increase foreign healthcare investment. First, China will relax current constraints on the development of gene therapy, stem cells, and related technologies in 4 foreign trade zones including Shanghai, Beijing, Guangdong, and Hainan Island. Assuming that foreign investors will abide by Chinese laws, foreign-invested enterprises (FIEs) will now be able to tap into China’s local research and development capabilities, manufacturing infrastructure, etc. This will help foreign healthcare companies develop new therapies for both the Chinese and overseas markets.
Second, China will now allow, in certain China cities, 100% wholly-owned foreign hospitals. Foreign-owned hospitals will enable Western companies to bring in cutting-edge technologies and devices and new treatment modalities to improve patient experience in China. Foreign healthcare investment in China has taken a real nosedive over the last 4 years. Now, with new foreign investment programs being established, the hope is that IP will again begin to improve, and new opportunities will emerge for Chinese-foreign co-development healthcare opportunities to manifest themselves more easily.
Written by: Ames Gross – President and Founder, Pacific Bridge Medical (PBM)
Mr. Gross founded PBM in 1988 and has helped hundreds of medical companies with regulatory and business development issues in Asia. He is recognized nationally and internationally as a leader in the Asian medical markets. Mr. Gross has a BA degree, Phi Beta Kappa, from the University of Pennsylvania and an MBA from Columbia University.