Dive Brief:
- China's health care market is experiencing rapid growth, for reasons that include increasing rates of chronic disease, a growing middle class and an aging population, according to Patrick Spence, an international trade specialist with the U.S. Department of Commerce's U.S. Export Assistance Center in Nashville. In other words, it's a tempting target for both health care companies and venture capitalists.
- Spence says that there are particularly good opportunities in Shanghai and the Yangtze River Delta Region. Shanghai, he says, has a tradition of openness to foreign investment and business opportunities. What's more, the Shanghai Medical Reform Office is leading efforts to build to international medical districts.
- That being said, China is still a market that requires caution, Spence said an article in the Nashville Business Journal. He recommends building personal connections and working with a team on the ground to cope with national and local rules and regulations.
Dive Insight:
While China may represent a big opportunity, Forbes notes that the country's ability to execute its promises in health care is not very robust. According to Forbes author Benjamin Shobert, it's still very hard to deploy capital in China, as few foreign deals are approved by authorities there. It appears that keeping an eye on how things are going in China might be smarter than actually attempting to invest there as of yet.