Health-care companies facing 'unprecedented' opportunities in China

Long-term investment is expected from multinational health-care companies if they hope to profit from the fast-expanding sector in China, according to participants at a recent forum at Fudan University.

"The next five years may see the fastest growth in China's health-care sector," Zhang Yihao, CEO of GE Healthcare China, said at the annual health-care forum hosted by Fudan's School of Management.

"To grow with China is a deciding factor for almost all success of multinational companies in China. It should couple with long-term investment in the country, instead of short-sighted interests," Zhang said.

Health-care companies are facing "unprecedented" opportunities, said Zhang Wenkang, former head of the National Health Commission.

"The value of the sector is forecast to reach 16 trillion yuan (US$2.52 trillion) by 2030, and it is the era of a 'broader' health-care industry, incorporating many other industries and facilitated by many new technologies," Zhang Wenkang said. "They will  foster the sector to become a driving force of the national economy."

For example, health care is now connected with property and insurance industries in the senior-care sector, and is increasingly related to new technologies such as Internet, big data and digital connections.

Those with long-term commitment and with innovative insights can better take advantage, Zhang Wenkang said.

As a foreign company with a 124-year history in China, GE Health has been acute in spotting changing demands in the country and trying hard to meet them, Zhang Yihao said. Last year, GE Health extended its partnership with state-owned Sinopharm for another 30 years after a three-decade contract.

Sonova, a relative newcomer, is also confident in the potential of China's market for hearing-impaired population. It introduced its Unitron-branded Moxi Blu Rechargeable hearing aids, which won seven Red Dot Awards, at the recent Shanghai International Medical Devices Exhibition.

"Technological innovation is fundamental to develop China's health-care industry, which needs coordination of governments, scientists, entrepreneurs and companies," Zhang Wenkang said.

Lu Xiongwen, dean of Fudan's School of  Management, said people should also be patient in nurturing the health-care sector.

"It is a sector with a high threshold, favoring investors and companies with long-term devotion," Lu said.