Growth in the Health and Aged Care Sector - The China Trade Report
The China Trade Report was launched by the Australia China Business Council this month (November 2016). “The Long Boom: What China’s Rebalancing means for Australia’s Future” discusses the future of the Australia China trade relationship over the next 10 years and was produced by the Monash University Business School.
It states that under the Accelerated Rebalancing Scenario, China could claim nearly as high a proportion of Australian health care/social assistance exports by 2025 as it does Australian mining exports. It indicates there could be almost 500,000 new jobs in health care and social assistance generated in the next 10 years from China under relatively conservative scenarios, with Chinese growth in the health care and social assistance export market being between 42% and 47%.
Exports to China in the health and aged care sector are a significant source of growth for the Australian economy, arising from the expanding middle-class in China. In 2015, the Chinese middle-class comprised 109,000,000 adults, the largest middle-class in the world and almost 5 times the size of Australia’s total population. This middle class will continue to grow (and age) over the next 10 years.
Australian exports have traditionally been in goods including ‘rocks and crops’ but our economy is developing more quickly in service exports including health care. This is the area that will see the greatest growth over the next 10 years.
Over 200,000,000 people in China are currently aged over 60 and the Chinese government has recognised the need to reform the health care market to take into account this growth in aged population, health issues arising from a polluted environment, growth in cigarette smoking in China (China accounts for over a third of all cigarettes consumed in the world) and the effect of the one-child policy on support for aged parents.
The International Business team and the Health & Aged Care team at TressCox are in a unique position to provide specialist advice on the export of health and aged care services to China and elsewhere.
Sandy Lai, Special Counsel