In this Issue:
- Golden Years: An Overview of China’s Elderly Care Industry
- Investing in China’s Elderly Care Services Industry
- Challenges Ahead for Investment in China’s Elderly Care Market
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 Briefing magazine, 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.