W
ith a population bigger than that of Iran, Turkey, or France,
Sichuan province in China’s southwest is at the heart of one
of the fastest growing regions in the world: western China.
The growth is raising incomes of farmers and making healthcare more
accessible, a goal outlined in China’s 12th five-year plan. As incomes
continue to rise in this province of 80 million, experts predict that the
healthcare sector in the province’s capital, Chengdu, is set to boom. Global
medical service providers, equipment providers, and pharmaceutical
companies are recognizing the potential and are moving to Chengdu to
expand in the market.
This shift was on display in early June when global business leaders
met in Chengdu for the FORTUNE Global Forum. Over $18 billion
dollars of business deals were signed during the 3-day event, no shortage
of which were centered on the burgeoning healthcare industry.
International SOS, amedical and travel security risk company, opened
a new office in Chengdu in June to better meet demand from Chinese
clients – a segment that they expect to double in the next 5 years.The new
facility is a central part of their regional expansion strategy, noted Chief
Executive Arnaud Vaissi. “We want to use the new office in Chengdu as
a hub for western China,” he said, adding that Chengdu “is the place with
the highest level of interest to our clients.”
Discussing Chengdu’s strategic importance to Bayer, Johannes
Dietsch, President of the Bayer Greater China Group, noted that Bayer
HealthCare’s western base in Chengdu is the best place to start expanding
their presence intowesternChina.TheGermanpharmaceutical giant also
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provides medical training to physicians in developing countries,
reaching deeper into the province as part of their commitment
to China’s “GoWest” campaign.
Joseph Jimenez, CEO of Novartis also discussed the
importance of western China’s rapidly increasing healthcare
needs to his company. “With our offices here, we can better
serve the population in this area and to the west” he said
speaking in Chengdu at the FORTUNE Global Forum.
Novartis is hoping to tap into local market expertise and meet
greater demand as they shift their center of gravity to fast
growth markets like western China.
Last year, General Electric opened an Innovation Center in Chengdu,
the first of its kind anywhere in the world. Among other technologies, GE
hopes to make the innovation center a hub for healthcare technologies
and innovation.
The impressive growth in the healthcare industry is representative
of a broader, large-scale movement happening across many industries.
Booming foreign investment will remain a key strength for China’s
western business center, Nobel Prize-winning economist RobertMundell
said during the forum. As multinationals position themselves to cash in
on consumption-led growth in western China, Chengdu officials expect
FDI in healthcare to continue growing. These trends are sure to be a
hot topic of conversation again when the World Chinese Entrepreneurs
Conference convenes in Chengdu on September 24.
