The framework of this report is Task 4.1 on FDI and Trade. The researchers involved in this Task are working to develop a good knowledge of the extent, determinants and characteristics of trade and FDI flows between Europe and China in the healthcare related industries.
In this report we combine different sources of data and analyses to:
- define the level of integration reached so far in the healthcare industries in Europe-China, considering both trade, cooperation initiatives and investment flows;
- understand the role of specific national and local policies, in European countries and China, in influencing FDI trends and trade patterns (in cooperation with Task 2.1);
- map European investments in China and Chinese investments in Europe in the healthcare related industries;
- clarify obstacles, barriers and difficulties faced both by European firms in initiating, maintaining and consolidating trade and investment initiatives in China and by Chinese firms in operating in Europe.
In the first part of the report, we describe Chinese national policies in the healthcare system (par 1) and related industrial policies to develop the healthcare industry. A specific attention is devoted to the Go Global strategy developed by the Chinese government, that is critical for the development of healthcare firm from China. Promoting global venture, the government is encouraging strategic asset sourcing on the one hand and the accession to new markets, new product development opportunities on the other hand. Later, we focus on EU-China international cooperation, also considering the negotiation of bilateral investment treaty that should enhance bilateral investment (par 2.). We than move to the analysis of bilateral trade flows, focusing on the following main sectors: TCM (including Health products, Plant Extracts, TCM Formulations, Raw materials for TCM); Medical devices and Equipment (Accessories, Disposables, Hospital Diagnostic Equipment, Rehabilitation Equipment, Dental materials); Pharmaceuticals (APIs, Formulations, Bio-chemical drugs). Later, we provide a deep analysis of Chinese investments in Europe in the healthcare sector, based on different type of database available (Mofcom firm level data base, as well as Rhodium group FDI data). We also focused on case study analysis of Chinese firms that embarked on M&A or greenfield investments in the last years. On the final part, we provide a focus on the Chinese Pharmaceutical market, that is the most relevant in terms of size and number of Chinese and European firms involved.