Overall, the Healthcare industry is significantly more positive in its assessment of the business climate in China than foreign business in other sectors. Only three percent of healthcare industry respondents report a forecasted decrease in 2015 China revenues and only 10 percent forecasted lower EBIT (earnings before interest and tax) margins as compared to those of 2014. Industry respondents are particularly optimistic about domestic market growth in China. Unique branding and technology and intellectual property are reported as significant competitive advantages over domestic Chinese competitors. Nevertheless, challenges remain including rising salary and wage expenses and difficulty attracting skilled executive or managerial staff. In particular, 96 percent of industry respondents expect average labor costs per employee to increase in 2016 as compared to 2015.
Key Points of this Report:
- 70 percent of respondents project an increase in EBIT compared to last year, but only 33 percent report that EBIT margins in China are higher than global margins.
- Innovations through hiring and training employees and digitalization are especially important among industry respondents to compete within the Chinese healthcare market.
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This report distills industry-specific data from the full 2016 BCS Report, reflecting the business climate for this specific industry.
To read more about how Healthcare companies do business in China, visit the AmCham China Business Center.