Firing up the Healthcare Industry
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INSIGHTThe Journal of the American Chamber of Commerce in Shanghai - Insight November 2016 FIRING UP THE HEALTHCARE www.amcham-shanghai.org INDUSTRY Measuring the pulse of China’s healthcare industry, including opportunities for private hospitals, senior care and the biotech sector. FEATURES P.16 POLICY P.22 ESOTERICA P.34 Q&A with Overview of drug On post-partum medical devices company and devices regulation monthly confinement MOVERS AND SHAKERSCAREER TheINSIGHT Journal of the American Chamber of Commerce in Shanghai - November 2016 AMCHAM SHANGHAI FEATURES President KENNETH JARRETT 07 Slowly Severing the State’s Hand VP of Administration & Finance How private hospitals are reshaping the healthcare landscape HELEN REN 10 Old People, New Problems Directors How China’s elderly could create the country’s biggest industry Business Development, Marketing & Events 13 China’s Coming Biotech Revolution PATSY LI A look at the opportunities and challenges in China’s biotech industry Committees JESSICA WU 16 The Surgeon’s Toolbox Q&A with Stryker’s William Jin on China’s medical device market Communications & Publications IAN DRISCOLL 19 High Impact Boards Government Relations & CSR Best practices for boards to follow VEOMAYOURY "TITI" BACCAM Membership & CVP LINDA X. WANG Trade & Investment Center LEON TUNG POLICY PERSPECTIVES INSIGHT 22 China’s Integration of Healthcare and Medical Device Regulatory Reform Legal experts share insights on evolving policies Senior Associate Editor RUOPING CHEN 24 New Guidelines on Regulating Inbound Investment Streamlining regulation on inbound investment for non-restricted sectors Associate Editor DOUG STRUB Content Manager DEBORAH TANG Design MEMBER NEWS GABRIELE CORDIOLI Printing 25 Board of Governors Briefing SNAP PRINTING, INC. Notes from September’s meeting 26 Event Report Recap of selected events from last month INSIGHT Month in Pictures SPONSORSHIP 28 Selected photos from last month’s AmCham events (86-21) 6279-7119 Story ideas, questions or comments on Insight: Please contact 30 Exit Interview Ruoping Chen With Carl Wegner, former managing director at Deutsche Bank (86-21) 6279-7119 ext. 4583 [email protected] 31 Committee Chair’s Corner Insight is a free monthly publication for the members of The American Chamber of With David Basmajian, chair of the Healthcare Committee Commerce in Shanghai. Editorial content and sponsors' announcements are independent Esoterica and do not necessarily reflect the views of 34 the governors, officers, members or staff Post-partum: sitting the month of the Chamber. No part of this publication may be reproduced without written consent of the copyright holder. Special thanks to the 2015-2016 AmCham Shanghai President’s Circle Sponsors Shanghai Centre, Suite 568 1376 Nanjing West Road 2016 Shanghai, 200040 China tel: (86-21) 6279-7119 fax: (86-21) 6279-7643 www.amcham-shanghai.org November 3 attract at least 20 primary Another giant Toyota has been in TEDA component makers to for 16 years. Toyota’s three existing settle in TEDA. production lines can produce 530,000 vehicles annually. Early this year, the TEDA’s cooperation with Tianjin FAW Toyota Motor Corporation the auto giant Volkswagen started building its fourth plant in TEDA already started since 2012, and will produce new models by the when Volkswagen decided middle of 2018. The annual capacity of to build a new transmission the new production line is expected to production base here, reach 200,000 vehicles. namely DQ380 and DQ500. The two kinds represented The automobile manufacturing industry cutting- edge technologies is one of the pillar industries of TEDA, that were rst introduced which has gathered world-known Auto joint venture FAW-Volkswagen to China. With a convenient atmosphere, vehicle makers including Volkswagen, Automotive is building a new whole- Volkswagen further added DL382 Toyota, Great Wall Motor, Qingyuan vehicle manufacturing base in Tianjin. products to its TEDA base and more Electric Vehicle, Xingma Automotive, The new base, with an investment of possibilities are still ahead. Now its total and many component providers like 19.5 billion Yuan ($3 billion), is expected investment on transmission alone has Aisin, Audi, Denso, Continental, Yazaki, to be nished in 2018 and to make reached 13.85 billion Yuan ($2.1 billion). Hyundai Hysco, Mobis, TI Automotive, 300,000 cars per year. Minth Group, Freescale etc. TEDA has German auto parts supplier Continental formed a complete auto industry chain Covering 108 hectare of land, the new AG also invested 80 million U.S. dollars of whole cars, motors, transmissions, base is located at Tianjin Economic in a new factory in TEDA scheduled auto electronics, auto moulds, tires and & Technological Development Area to start operating in 2017. Continental coatings. According to TEDA’s plan of (TEDA). When put into operation, the launched a business here in 2007 auto industry, the annual output will base will require 6,000 employees, and producing automotive electronic reach 2 million vehicles and a total value will certainly attract its components products for global clients and now of 30 million Yuan by the end of the 13th suppliers to follow suit. Based on normal expects to produce a greater range of Five-Year Plan. practice, a whole-vehicle base will products in China. TEDA SHANGHAI OFFICE ADD: 19 HONGDA ST., TEDA, TIANJIN TEL: +86-21-68827776 TEL: +86-22-25201831 +86-22-25201907 EMAIL: [email protected] WEB: www.teda.gov.cn www.amcham-shanghai.org 4 Meiguo da xuan, as America’s pres- to help with this, but we need to do more. CHAIRMAN’s idential election is referred to here, We need real answers to these problems should finally be over by the time you and a serious approach to education and LETTER read this. Our nation’s ritual of dividing retraining that will give American workers into camps and viciously criticizing ev- the skills they need to compete. China and eryone and everything is now behind Taxing imports to protect uncompet- us, at least for another four years. Im- itive industries doesn’t seem like the an- the American Election migrants and foreigners have always swer either. Do we really want to close our been easy targets during America’s po- borders and risk a trade war just to main- litical campaigns, and this year was no tain low wage, dead end jobs? exception. Mexico took the brunt of the If we want to continue to enjoy the ben- attacks, but China was also blamed by efits of open trade, then we need to do a both parties for all manner of crimes. better job of explaining and sharing the The Republican nominee was partic- benefits of globalization. ularly sharp in his criticism of China and This year’s election process has left America’s policies in Asia. He accused America’s two-party system badly dam- China of everything from currency ma- aged. In some sense, this system is the nipulation and intellectual property theft political corollary to the checks and bal- to using “weapons of job destruction.” ances that prevent excessive concentra- The Democrats, for their part, shamefully tion of power in government. Two strong backed away from pro-trade positions and parties accommodate our nation’s var- focused on China’s alleged hacking and ied interests and opinions. For decades, stealing of trade secrets. competition between Republicans and Now that it’s over we heal the wounds. Democrats has given us choices. Which- China, normally thin skinned and suscepti- ever party is in power faces constant ble to “hurt feelings,” has been remarkably criticism from the other and must justify unfazed. This shows maturity, but also a and defend policy choices at every step high level of awareness and understand- of the way. ing about our unique political system. Still, The GOP is in disarray, to say the least. KER GIBBS this hasn’t stopped Beijing from pointing This is not good for us, no matter who we Chair of the Board of Governors out flaws in American style democracy or wanted in the White House. We need both comparing it to “House of Cards.” parties to govern. The second place candidate in this Post election, what will the Republican election should now fade away, but the party look like, and what will be its position issues championed remain. Many in toward China? Will the GOP fix itself, and America have not benefited from global identify a set of core values and a strong trade, and through our election process position from which to lead? they have made their views known. The Historically, Republicans have advo- debates have brought to the surface real cated open trade, active investment, and problems that exist in America because of political engagement in Asia. They have trade. Factories have closed and people championed a balance between eco- have lost jobs. nomic and military strength in the region. Those of us who work in China see the These policies, which have enjoyed bipar- benefits from globalization but millions of tisan support, have served us well. Asia Americans do not. More to the point, the and America have prospered. Let’s not benefits from trade tend to be disbursed forget that it was a Republican, Richard widely in the form of lower cost products. Nixon, who took the first steps toward nor- Economists estimate that Americans re- mal relations with China. ceive on average about 10% more dis- With the election behind us we have an posable income due to low cost products opportunity to reset. Both parties need to from China. The costs, however, tend to work together to develop an effective pol- be concentrated. A closed steel mill or icy for continued prosperity in Asia. Open shuttered shoe factory can put thousands trade and investment has always been of people out of work in a single town.