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Health Tech Export Opportunities at Hainan Free Trade Port, China

innovation export market-access China pharmaceutical medical-device health-technology health healthcare Health-and-wellbeing
Senior Advisor
Sanorita Li
0086 18600599682
sanorita.li@businessfinland.fi
The establishment of the Hainan Free Trade Port (FTP) is a Chinese government's key initiative in recent years to make Hainan Island an international tourism destination and innovative platform in a number of sectors. The FTP enjoys a number of policy concessions such as zero tariffs, low corporate tax (corporate 15% compared 17% for HK), simplified tax system, less supervision, equal treatment of domestic and foreign enterprises in government procurement etc.

Healthcare is one of the crucial areas. Specifically, the FTP is the only place in China that provides easy market access for suppliers of international novel medical devices, health technologies, and innovative pharmaceutical products. International healthcare providers are entitled to fast-track procedures, no NMPA (ex-CFDA) licensing, real-world clinical data sharing, and reduced time of approval from 429 working days to 58 working days. One of the key healthcare industrial parks is Boao Lecheng International Medical Tourism Pilot Zone (Lecheng Pilot Zone)

Companies and sectors benefiting from this opportunity

Finnish health technology providers

 

Solutions or products needed

  • Health technologies, novel medical devices and equipment, healthcare services, and innovative pharmaceutical products
  • Products and services are relating to the whole value chain from prevention, screening and diagnostics, treatment, to rehabilitation and care
  • In terms of disease categories, the Pilot Zone is focused on ophthalmology, otology, dermatology, cardiology, oncology, orthopaedics, traditional Chinese medicine, fertility, rehabilitation, medicine and plastic surgery. However, other disease categories are also welcome as the Pilot Zone is currently expanding to multi-disciplinary practice.




Team Finland activities available for Finnish companies

  • For those interested in the opportunity, Team Finland will be able to support companies by connecting them with key potential buyers and partners within the local value network
  • Upcoming event: 1-2 December 2020, Team Finland Health Technology Hybrid event at Hainan Free Trade Port, China. Register here
  • Team Finland will keep the companies interested in this opportunity updated about the upcoming events and activities.

Read more about this opportunity


China's outbound medical tourism industry has been booming in recent years. Estimates show 500,000 outbound Chinese medical travelers spend at least $10 billion on treatment and travel each year. Solid reasons behind this trend of development is Chinese people's intention to seek for better and more advanced medical diagnostics, treatment, and health and wellbeing at overseers markets. Therefore, there is a strong need to create a platform and a regional hub in China for international innovative health technologies to be available to both Chinese consumers and international travelers. Additionally, Covid-19 has further sped up Chinese government's intention to open up its healthcare sector to international solutions providers as outbound travelling is still of uncertainty and hesitation. Therefore, Hainan Free Trade Port provides good market access opportunities for international medical technology providers and an excellent R&D centre for global collaboration in health and wellbeing.

As one of the key medical industry park, Lecheng Pilot Zone was established in 2013 and was the first of 11 industrial parks in Hainan to have preferential policies of international trade and investment. Lecheng Pilot Zone is focused on novel medical devices, health tech solutions, and pharmaceutical products that are not currently available in China but in strong demands from domestic consumers in particular in areas of ophthalmology, otology, dermatology, cardiology, oncology, orthopaedics, traditional Chinese medicine, fertility, rehabilitation, medicine and plastic surgery. However, other disease categories are also welcome as the Pilot Zone is currently expanding to multi-disciplinary practice.

So far 50 licensed medical devices including artificial eardrum, artificial cornea, and new tumor drugs were imported and used for the first time in China at the beginning of 2020. In total, more than 100 medical devices, health technologies, and innovative drugs have been introduced to Lecheng Pilot Zone. Companies offering these products and services include AstraZeneca, Johnson & Johnson, B.Braun, Boston Scientific, Medtronic, Roche Diagnostics, Pfizer, Advanced Bionics, Allergan, Cochlear, MED-EL etc. In addition, more than 10 medical institutes are already in operation at the Pilot Zone such as Boao Super Hospital, Boao Sino-French Rehab Medical Center, Boao International Hospital, Boao Evergrande International Hospital, and Cimingboao International Hospital.

Therefore in the short-term, opportunities for Finnish health tech companies as followings:
  • Finnish healthcare companies with digital and health technologies, novel medical devices, healthcare services, and innovative pharmaceutical products can consider to sell to medical and health institutions at Lecheng Pilot Zone;


  • Current business model is for international companies to sell products and services to health and medical institutions at Lecheng Pilot Zone for their own use. With collection of real-world clinical data from the original countries of those products and services, international companies can at the same time acquire local clinical data from health institutions in Lecheng Pilot Zone and use both data for fast-track registration with National Medical Products Administration (NMPA);


  • Business model can be scalable with market access to other China markets and with increased number of travellers from home and abroad to visit Hainan for medical purposes;

  • Finnish startups looking for funding and financial support may have the opportunities of collaborating with Chinese investors from the FTP to scale and accelerate their businesses in China and beyond;



In the longer-term, Finnish health tech providers would further benefit from the FTP programme and get easier access to other China markets in particular after the fast-track registration with NMPA.