Chinese investment in Australia's medical industry has grown rapidly over the past three years to a $5.5 billion.Chinese companies have seen a surge in interest in Australian healthcare. According to statistics, over the past three years, China's m&a transactions in Australian medical enterprises have reached 16, with transactions worth more than a $5.5 billion.
China's private sector accounts for 80 per cent of Australia's healthcare industry. Chinese companies take a fancy to the main advantage of Australian health industry, including: the application of advanced technology, high quality nursing care facilities, powerful management system in China and Australia products clean, green and healthy brand image.
Most of these companies have a medical background in China. In an interview with foreign media, they also expressed their willingness to invest in the Australian medical industry in the future.
A recent study by accounting firm KPMG and the university of Sydney business school published a study entitled "revealing China's investment in Australia's medical industry". China's investment surge in Australia has focused on health and health care products, the report said. So far, there has been no significant investment in the pharmaceutical, biotechnology and geriatric nursing industries. But these areas are also areas of potential future growth.
For the Australian medical industry, the increase in investment will help speed up the export of high-quality brands and promote investment in related research and development, thus improving the technical capability.
China policy support
It is understood that the Chinese government has launched a process to simplify the registration process for foreign pharmaceutical companies in China, which will help foreign pharmaceutical companies obtain the approval of relevant drugs in China. Before that, because of the "bottleneck" clinical trial related regulations, a lot of foreign companies want to get the state food and drug administration regulatory approval documents (CFDA) listed often take a long time. When the new rules are implemented, the time will be greatly reduced.
In addition, the Chinese government has launched a "healthy China 2030" plan to give priority to developing the Chinese medical industry. According to statistics, over the next five years, China's medical industry expenditure is expected to increase at an average annual rate of 8.1%.
Uncovering China's investment in Australian medical industry.
The revelation for Australia's medical industry investment in China's report points out that during the three years of 2015-2017, China's total investment respectively for Australian health industry a $2.55 billion (2015), a $1.35 billion (2016) and a $1.58 billion (2017).
Chinese reasons for choosing to invest in Australia's healthcare industry.
In the next few years, Chinese investors are expected to further expand their investment in Australian medical field. The main reasons are as follows:
- Australia's mature business services and advanced technology.
- Australia ranked first in the english-speaking countries, followed by Canada, the United Kingdom and the United States.
- relatively small time difference with China (2-3 hours)
- stable political environment.
- low sovereign risk
- transparent regulatory environment.
- long-term economic growth.
- cultural diversity
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