Business Alert – China

Following Chinese vice premier Li Keqiang’s visit to Hong Kong, six policies and 36 measures in support of the city were announced. In face of the uncertain global economic outlook, the new measures announced by Li are expected to bring real opportunities to many sectors, helping the city maintain its economic growth and creating new jobs. Indeed, the emphasis in the 12^th Five-Year Programme on the service sector presents Hong Kong companies with enormous business opportunities. In particular, favourable conditions were created for Hong Kong’s high-quality medical services to make inroads into the mainland.

According to industry sources, the latest policies have made it clear that the regions where Hong Kong investors are allowed to run wholly-owned hospitals will be expanded to cover municipalities directly under the central government and provincial capitals. This will not only enhance exchanges between the medical sectors in Hong Kong and mainland, but also provide mainland patients with more choices in medical services. Hong Kong residents living and working on the mainland also stand to benefit from such services.

Although reforms of the mainland’s medical system have gradually deepened, problems like difficulties in seeking medical treatment and exorbitant charges loom large. There is still a long way to go before a comprehensive medical service system is in place. In an opinion poll on public services conducted among residents in Beijing’s urban areas announced by the National Development and Reform Commission, it was found that the level of concern expressed by the 2,000 families interviewed towards medical and health services came second only to services for maintaining law and order. 41.4% of the respondents said that in case a family member fell ill, they would not seek treatment in a community hospital.

The poll highlights people’s demand for reliable, safe and quality medical services. Capitalising on their advanced technologies and comprehensive services, Hong Kong’s quality medical service providers will find ample opportunities on the mainland. Their entry into the mainland can also help the latter carry out its medical system reforms more thoroughly and effectively.