Powering on China’s healthtech industry with digitalisation

Medical drugs and artificial intelligence (AI) seem the latest drivers in healthtech for the Asian giant.

When it comes to China, people know about its large manufacturing sector, information services sector, or the real estate market. But what about their booming healthtech?

Global digitalisation has brought about many advancements in the healthcare industry, and China particularly is seeing a boom these past 2 years — with no signs of stopping. Naturally, this is largely driven by the COVID-19 pandemic, which has increased the need for healthcare and digitalisation.

For example, with more people turning to online medical consultations, it has facilitated a rise in online drug sales as well. In the past, people were hesitant to buy drugs online because they were skeptical of the drugs’ sources and believed that these were of lower quality. But with new regulations that guarantee quality — and COVID-19 that has encouraged online sales in general — the online drug market is likely to see strong growth as demand increases.

AI is transforming the healthcare industry too. No, we don’t mean intelligent robots are taking over — we’re referring to how AI diagnostic systems are reinventing Chinese healthcare companies. A total of 129 AI healthcare companies were recorded in China in 2020, with many more to come. An exciting future awaits investors!

Constant vigilance!

There is no doubt that China’s healthtech industry has plenty of potential. However, it is key to remember that healthcare is still a policy-driven market. Any changes in governmental policies could see some volatility alongside the industry’s growth. Times are changing, and with rapid digitalisation and new concerns — like ESG investing and growing awareness towards tech ethical issues — it pays to be ahead of the curve.

At Eastspring Investments, we are committed to minimise the risks of your investments by staying on top of all the latest news and changes in the various markets. If you would like to know more about these opportunities please read our thought leadership article at China: Digitalisation hastens the healthtech boom.

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