China Investment Roadmap-the Elderly Care Industry- Preview

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In the coming few years, China’s health care sector and its related industries will be one of the
largest business sectors of the Chinese economy – possibly even larger in size than property.
While property investment has dictated the last 10 years of whopping development in the
Chinese economy, health care is set to take the helm in the next ten years, or certainly be
one of the top three drivers of China’s economy.
Within health care, the elderly care industry is one of the most dynamic areas of investment.
There are currently more than 220 million senior citizens in China, and this amount is
expected to balloon in the next few decades, reaching 400 million, or one third of China’s
population, by 2050. With its domestic institutions largely unable to cater to the increasing
demand for elderly care services, and with a developing incentive framework in place,
opportunities for foreign investment in elderly care abound.
As with most emerging industries in China, however, investing in the country’s elderly care
services doesn’t come without challenges. Unique cultural considerations, an immature
labor pool, and an unclear standard for FDI create a near perfect storm of risks that can
easily cripple a foreign business before it gets off the ground. Conducting a thorough due
diligence is unquestionably essential prior to market entry.
In this issue of China Briefingmagazine, we present a roadmap for investing in China’s elderly
care industry. We provide the latest market research, detail the procedures and benefits for
foreign direct investment, and examine the main barriers and risks that foreign companies
are likely to encounter when entering the market.
This Month’s Cover Art
王凤国 Wang Fengguo
Oil on canvas, 80x100 CM
Wan Fung Art Gallery
wanfung@12 .cn
+86 0760 8333 861
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Introduction