On September 8, 2024, the Ministry of Commerce, the National Health Commission, and the National Medical Products Administration issued a notice on expanding the pilot work of opening up in the medical field, involving the opening up of biotechnology and wholly-owned hospitals, bringing significant benefits to foreign medical investment in China.
The notice states that foreign-invested enterprises are allowed to engage in the development and application of human stem cell, gene diagnosis and treatment technologies in Beijing, Shanghai, Guangdong Free Trade Zone, and Hainan Free Trade Port for product registration, listing, and production. All products registered, listed, and approved for production can be used nationwide.
In addition, it is proposed to allow the establishment of wholly foreign-owned hospitals in Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen, and the entire island of Hainan (excluding traditional Chinese medicine, excluding mergers and acquisitions of public hospitals).
The industry welcomes the latest policies mentioned above. A private hospital manager told First Financial reporters that China has been very cautious about the opening up of wholly foreign-owned hospitals in the past few years, mainly due to the sensitivity of medical data. The latest policy expresses the government's determination to further open up the healthcare sector, which is a great benefit for institutions planning to independently invest in Chinese hospitals, "he said.
The above-mentioned individuals also stated that the opening up of China's medical field to foreign investment is gradual, and the latest documents have not yet involved specific policy details. The follow-up will depend on the implementation of relevant policies in various cities and free trade zones, as well as the willingness of foreign investors to invest in China, after all, the investment cost of a hospital is very high.
The founder of a health management organization told China Business News that the needs of Chinese people for medical resources are very diverse, and many high-end needs are far from being met. With more and more high-end medical institutions investing in China, it can also divert the needs of some high-end patients and improve the overall development and progress of China's medical level.
Although high-end private medical institutions have gradually developed over the past decade, these private hospitals still rely mainly on services to attract patients, "she told a reporter from First Financial
The founder of the above-mentioned enterprise also stated that the current demand for high-end medical services from overseas by Chinese patients mainly comes from several fields, including major and difficult diseases, regenerative medicine (tumor immunotherapy, stem cell therapy), post-stroke rehabilitation treatment, etc. Japan, the United States and other places are their frequently chosen treatment destinations.
At present, high-end private hospitals in China, such as Jiahui and United Family Healthcare, are mainly participated by the Chinese side, while the establishment of wholly foreign-owned medical institutions means that foreign parties can introduce the entire system and concept, as well as cutting-edge technology and equipment, into China. "She told First Financial reporters," But whether this business model will be successful still depends on whether foreign-funded institutions can obtain corresponding supporting policies, such as whether the introduction of advanced drugs and equipment can enjoy a fast track
In recent years, top foreign medical institutions have been targeting the growth of China's high-end medical demand market. In June of this year, Mayo Clinic, a well-known medical institution in the United States, established its first office in China, located at Shanghai United Family Hospital. Both parties stated that they will engage in long-term cooperation in areas such as combination therapy, international academic exchanges, clinical training, and enhance the accessibility of international cutting-edge medical technologies in China.
After decades of continuous development, China's medical level has achieved remarkable achievements. In some fields of disease treatment, China's medical level is at the forefront of the world, and Chinese doctors have rich treatment experience, "Zhu Tongyu, Vice Dean of Shanghai Medical College at Fudan University, told First Financial News." However, in some cutting-edge medical technologies, the United States is still leading, and many of the latest technologies have been promoted from the United States to the world
Regarding the latest human stem cell, gene diagnosis, and treatment technologies that are open to foreign investment, Zhu Tongyu stated that the treatment methods for cancer have undergone significant changes, with a focus on precision medicine, immunotherapy, and genomics. In the future, many new therapies will emerge in this field.
The introduction of advanced medical institutions and innovative therapies is of great value for benefiting patients and promoting the development of medicine in our country, "he told First Financial reporters. But he also pointed out that any international cooperation challenges and opportunities coexist.
Coordinating regulatory standards across different countries and simplifying the approval process for new therapies to make them accessible to patients worldwide is a major challenge. In addition, how to share data on clinical trials and patient outcomes, establish international databases, and provide support for the effectiveness and safety of new therapies is also a direction that all parties need to explore in the future, "said Zhu Tongyu.
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