On March 30 of this year, the Chinese State Council released a set of goals for the Chinese healthcare sector as part of China’s latest five-year plan. These reforms are expected to increase demand for medical devices and pharmaceutical products in China. The plan calls for:
- Improving basic medical insurance coverage by raising subsidies for both urban and rural residents
- Reducing drug prices
- Increasing medical service fees
- Increasing funding for public health services
- Increasing the number of clinics and hospitals, including private facilities (30% of hospitals will be private in 2020, compared with 10% now)
- Increasing the number of primary care doctors and nurses
- Achieving better healthcare services through the use of technology, including wearable devices
The Chinese government has also committed to privatization and lowered restrictions on foreign investment in the healthcare sector. By 2020, China’s healthcare market is projected to be worth more than $900 billion.