Major healthcare push lies ahead for China

Subject

The outlook for the healthcare sector in China.

Significance

The 13th Five-year Plan (2016-20), now being compiled for release later this year, will see structural reform of the health system and greater investment in healthcare. Improving healthcare is an important source of popular support for the government, and has implications too for economic growth, indigenous innovation and market access for foreign businesses.

Impacts

• China is highly susceptible to infectious disease outbreaks; the world will depend on its health system for protection.
• Over-prescription of antibiotics is making China a dangerous source of antibiotic-resistance.
• More healthcare spending could gradually alter the balance power in the wider state bureaucracy, altering the longer-term policy outlook.
• China is now far better placed to deal with a contagion than it was when SARS hit in 2003.