In 2024, Emerging Communications published an article arguing that China's healthcare system was changing in ways that favoured innovative products. Two years on, the opportunity is no longer only about selling into China. Chinese biotechs are also licensing drug candidates to global pharmaceutical companies at record values, creating demand for Western clinical, regulatory and commercial partners.
For Western B2B healthcare companies, that creates two opportunities:
- Selling into China. This means hospitals, distributors, research institutions and pharma companies in categories where a Western supplier can demonstrate a relevant technical, quality or service advantage.
- Selling to Chinese life-sciences companies going global (出海, chuhai). This covers clinical trials, regulatory and EU/US compliance, market access, pharmacovigilance and commercialisation services for Chinese firms taking assets to Europe, the US and Australia.
This report sets out the numbers, the policy changes and the marketing implications of both.
The market in numbers
- Pharma: KPMG China estimates the Chinese pharmaceutical market at US$226.7bn, forecast to reach US$448.0bn by 2035 (6.4% CAGR 2024–2035E). KPMG China, China Life Sciences Sector Overview and Outlook 2026
- Medical devices: KPMG puts the market at US$131.0bn, forecast to reach US$261.8bn by 2035 (6.5% CAGR). KPMG China
- A more cautious view: IQVIA forecasts China's pharma market to grow at a 2.8% CAGR over 2024–2029, reflecting pricing pressure from volume-based procurement (VBP). IQVIA The forecasts differ, but both point to stronger prospects for innovative products than for off-patent and commoditised categories.
- Demographics: KPMG expects China's population aged 60+ to reach around 270 million by 2030. KPMG China
What has changed since 2024
1. Policy created new routes for foreign providers
In September 2024, MOFCOM, the National Health Commission and the NMPA allowed foreign-invested enterprises in the Beijing, Shanghai and Guangdong free-trade zones and the Hainan Free Trade Port to do stem-cell and gene-therapy R&D, registration and production. NMPA · gov.cn
A pilot plan in November 2024 then allowed wholly foreign-owned hospitals in Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen and the whole of Hainan Island. gov.cn The first, Perennial General Hospital Tianjin, a 500-bed tertiary general hospital owned by Singapore's Perennial Holdings, opened in February 2025. gov.cn / Xinhua By July 2025, official reporting named three approved hospitals: Tianjin Perennial, Guangzhou Baiyun Perennial and Shanghai DeltaHealth Cardiovascular Hospital. Chongqing Municipal Commission of Commerce In June 2026, Fujian's provincial government reported that Fuzhou Xingyao Eye Hospital had opened, bringing the verifiable total to at least four. Fujian Provincial Government The same month, MOFCOM, the NDRC and the Ministry of Finance said they would move quickly to study and seek approval for widening the pilot to more regions. gov.cn
2. Faster regulatory review for innovation
The NMPA approved 76 innovative drugs in 2025, up 58%. Yicai Global
From late 2025, eligible innovative drugs qualify for a 30-working-day review of clinical trial applications. NMPA Announcement 2025 No. 86
3. Reimbursement now covers innovative drugs more fully
In 2025 the National Reimbursement Drug List (NRDL) added 91 drugs, bringing the total to 3,159. The NHSA also announced a separate Commercial Innovative Drug Catalogue, which took effect on 1 January 2026. It opens a commercial-insurance route for high-value innovative therapies. KPMG China
4. China became a source of innovation as well as a market
- Chinese drugmakers signed a record US$135.7bn in out-licensing deals across 157 transactions in 2025, up from US$51.9bn across 94 deals in 2024 (PharmCube data). Caixin Global
- KPMG reports that Q1 2026 out-licensing already exceeded US$60bn. It also notes that drug discovery in China costs 30–40% less and that trial enrolment runs 2–3x faster. KPMG China
- Western CROs are responding to demand from Chinese sponsors that need support with Western trials and regulatory submissions. Veristat is one example. Clinical Research News
5. Chinese investment into Europe is rising again
MERICS and Rhodium Group report that Chinese FDI into the EU and UK rose 67% to €16.8bn in 2025. MERICS When a Chinese life-sciences firm brings an asset, trial or facility to Europe, it may need regulatory, clinical, legal and commercial partners. That creates a defined opportunity for Western specialist providers.
Where the opportunities are for Western B2B firms
| Opportunity | Who it suits | Why now |
|---|---|---|
| Innovative therapies and advanced modalities (cell and gene therapy, rare disease, oncology) | Pharma and biotech | Faster IND review, the commercial innovative drug catalogue, and FTZ opening for CGT |
| High-end medical devices and diagnostics | Medtech firms | Hospitals are upgrading, while imported precision devices can retain an advantage in categories where buyers require capabilities or evidence not available from local alternatives |
| Premium and specialist hospital services, and knowledge transfer | Hospital groups, training providers, academic medical centres | The WFOE hospital pilot and continued demand for clinical training and partnerships (see our Great Ormond Street Hospital case study) |
| Clinical trial, CRO, regulatory and pharmacovigilance services for Chinese sponsors | CROs, regulatory consultancies, EU/UK QPPV and authorised-representative services | Record out-licensing and Chinese assets entering EU/US trials |
| Compliance, data and software for global expansion | EU-compliance, MDR/IVDR, data-privacy and HR-compliance SaaS | Chinese life-sciences firms setting up in Europe, the US and Australia |
What this means for your China marketing
Healthcare marketing in China is regulated and runs on relationships
Advertising rules for drugs and medical devices are strict. Paid activity may require approval, while hospital stakeholders and medical key opinion leaders (KOLs) can influence how products and evidence are evaluated. Read Can I advertise my business in China? before planning a campaign.
Use WeChat as your professional channel
WeChat is an important professional channel for many medical audiences in China. It can connect clinical content, webinar registration and supplier conversations within the same ecosystem. Tencent reports 1.439bn combined Weixin and WeChat monthly active users at 30 June 2026. Tencent Q2 2026 results Our guide to WeChat for healthcare and life sciences covers official accounts, mini-programs and compliant content. Our Ergomed WeChat webinar case study shows how a CRO used a WeChat webinar to reach a Chinese professional audience.
Use credible medical voices
Credible medical KOLs can give a professional audience independent context that a brand claim cannot provide on its own. See KOL campaigns for life sciences and our professional influencer campaigns service.
Be findable in AI search
AI-assisted search is changing how professional buyers find and compare information. Baidu reports that its AI-powered business now makes up half of its general business revenue. Baidu Q2 2026 For healthcare suppliers, the practical requirement is clear, structured Chinese-language evidence that search and AI systems can interpret. Read Baidu AI: from links to answers for the wider visibility implications.
Meet in person at the right shows
Trade fairs such as CMEF (China International Medical Equipment Fair) are where medtech buyers and distributors meet. The spring 2026 edition (93rd CMEF, Shanghai, 9–12 April) drew nearly 5,000 exhibitors from 19 countries and regions and more than 300,000 professional visitors from 150+ countries and regions, across 320,000 m². CMEF 93rd post-show report (PDF), via cmef.com.cn downloads The autumn edition (94th CMEF) runs in Beijing on 21–24 October 2026. PR Newswire Plan your presence with our guide to Chinese tradeshows.
If you sell to Chinese pharma going global, market in Chinese
Chinese BD and regulatory teams research Western partners on WeChat and Baidu, in Chinese. Without a credible Chinese-language presence, a Western provider is less likely to be discovered or considered. We build that presence for Western CROs and compliance providers.
A four-step plan for 2026/27
- Check your category against policy. Confirm whether your product or service benefits from the IND fast-track, the NRDL or commercial catalogue, the FTZ opening or the hospital pilot. Then confirm what you are allowed to say in marketing.
- Choose your direction. Decide whether you are selling into China, selling to Chinese firms going global, or both. Each needs different audiences, messages and channels. Our China GTM strategy work starts here.
- Build a compliant Chinese-language base. This means a WeChat official account, WeCom for one-to-one follow-up, and content that Baidu and Chinese AI assistants can find.
- Earn trust with education. Run webinars, share KOL-led content, case studies and clinical data, and measure leads as well as impressions.
The SILK team have helped Western healthcare, life-sciences and regulated B2B firms from the UK, Europe, the US and Australia build their reputation in China since 2013.
This report revisits themes from the 2024 Emerging Communications article "China's healthcare evolves: opportunities for more innovative product growth". Figures are correct at the date of publication. Sources are linked inline.