Page 288 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
2.14 Healthcare
Key Take-Aways is moving toward regionalization and localization.
This can create opportunities for Chinese medical
• The COVID-19 pandemic has changed enterprises both in going out and bringing in.
individual health awareness and behavior over the Many Chinese companies are acquiring firms from
long term, and demand for healthcare services is other nations in order to procure and expand
mounting, paving the way for a comprehensive technological growth. In addition to healthcare,
healthcare upgrade via digitalization. experts expected Chinese companies would make
further use of their manufacturing advantages
• Outside tech companies are looking to in 2022 to explore and deeply participate in
expand and invest in the future of China’s medical reshaping global industrial and supply chains.
technology. Investment in green and sustainable development
also is expected to pick up and become a key
• China’s pharmaceutical industry continues contributor for expanding the international
to experience rapid growth and is continuing to involvement of Chinese enterprises. In 2021,
expand into research focus. by deal value, the top three sectors of Chinese
companies' overseas M&As were TMT—which
• Internet hospitals have offered a variety refers to technology, media and entertainment
of options for the elderly, infirm, or those living in and telecommunications, real estate, hospitality,
rural areas to receive medical aid. construction sector and advanced manufacturing
and mobility. By deal volume, the top three sectors
Background were TMT, health care and life sciences, and
financial services, accounting for 60% of the total.
Healthcare and life sciences are forecast According to the Hurun China Cross-Border M&A
to continue to be a leading area for Chinese Report 2021, the top 50 overseas M&A deals done
companies' overseas mergers and acquisitions by Chinese mainland companies reached 168.2
in 2022. That is particularly so as digitalization billion RMB (US$26.42 billion) in 2021, a drop of
is expected to help medical services excel 45% compared with 2020. The drop came as the
at finding cures for diseases, providing top- global economy continued to be hit hard by the
notch healthcare, and attracting diversified and COVID-19 pandemic and a slowdown in economic
multidisciplinary investment in the sector, experts development, as well as other factors such as
said. The announced value of Chinese companies' anti-globalization sentiment, the report said. But
overseas mergers and acquisitions reached US$57 there also are positive trends and prospects for
billion in 2021, up 19% year-on-year but down growth in Chinese companies' overseas M&A
28% compared to 2019. The value and volume of deals. The Regional Comprehensive Economic
China's overseas M&A deals in healthcare and life Partnership agreement, for instance, is a positive
sciences have been growing for two consecutive factor that will boost cross-border M&A deals by
years. In 2021, the sector's value increased by Chinese enterprises. The RCEP agreement is a
240% year-on-year, and the volume grew by multilateral trade agreement among China, Japan,
64%, a historic high. Investments were made South Korea, Australia, New Zealand, and the 10
in countries including the United States, South member states of the Association of Southeast
Korea, and India. The global medical supply chain Asian Nations. It is the world's largest regional
trade agreement (Si).
288
2.14 Healthcare
Key Take-Aways is moving toward regionalization and localization.
This can create opportunities for Chinese medical
• The COVID-19 pandemic has changed enterprises both in going out and bringing in.
individual health awareness and behavior over the Many Chinese companies are acquiring firms from
long term, and demand for healthcare services is other nations in order to procure and expand
mounting, paving the way for a comprehensive technological growth. In addition to healthcare,
healthcare upgrade via digitalization. experts expected Chinese companies would make
further use of their manufacturing advantages
• Outside tech companies are looking to in 2022 to explore and deeply participate in
expand and invest in the future of China’s medical reshaping global industrial and supply chains.
technology. Investment in green and sustainable development
also is expected to pick up and become a key
• China’s pharmaceutical industry continues contributor for expanding the international
to experience rapid growth and is continuing to involvement of Chinese enterprises. In 2021,
expand into research focus. by deal value, the top three sectors of Chinese
companies' overseas M&As were TMT—which
• Internet hospitals have offered a variety refers to technology, media and entertainment
of options for the elderly, infirm, or those living in and telecommunications, real estate, hospitality,
rural areas to receive medical aid. construction sector and advanced manufacturing
and mobility. By deal volume, the top three sectors
Background were TMT, health care and life sciences, and
financial services, accounting for 60% of the total.
Healthcare and life sciences are forecast According to the Hurun China Cross-Border M&A
to continue to be a leading area for Chinese Report 2021, the top 50 overseas M&A deals done
companies' overseas mergers and acquisitions by Chinese mainland companies reached 168.2
in 2022. That is particularly so as digitalization billion RMB (US$26.42 billion) in 2021, a drop of
is expected to help medical services excel 45% compared with 2020. The drop came as the
at finding cures for diseases, providing top- global economy continued to be hit hard by the
notch healthcare, and attracting diversified and COVID-19 pandemic and a slowdown in economic
multidisciplinary investment in the sector, experts development, as well as other factors such as
said. The announced value of Chinese companies' anti-globalization sentiment, the report said. But
overseas mergers and acquisitions reached US$57 there also are positive trends and prospects for
billion in 2021, up 19% year-on-year but down growth in Chinese companies' overseas M&A
28% compared to 2019. The value and volume of deals. The Regional Comprehensive Economic
China's overseas M&A deals in healthcare and life Partnership agreement, for instance, is a positive
sciences have been growing for two consecutive factor that will boost cross-border M&A deals by
years. In 2021, the sector's value increased by Chinese enterprises. The RCEP agreement is a
240% year-on-year, and the volume grew by multilateral trade agreement among China, Japan,
64%, a historic high. Investments were made South Korea, Australia, New Zealand, and the 10
in countries including the United States, South member states of the Association of Southeast
Korea, and India. The global medical supply chain Asian Nations. It is the world's largest regional
trade agreement (Si).
288
