China FTA Stimulant for Australiaâ€™s Healthcare Operators
Published By : 17 Jul 2015 | Published By : QYRESEARCH
Last month the sign of the China-Australia free trade agreement has opened doors for Australian healthcare providers in China, which will give them unprecedented access to one of the largest markets in the world. However, to take advantage of the opportunity will require careful planning and much of the planning has to start now.
The avenues that FTA will present are wide ranging and will impact health sector players in several ways: hospital providers in Australia have the opportunity in China to establish fully foreign owned hospitals in China in four provinces (Fujian, Hainan, Jiangsu, and Guangdong) and three municipalities in the country (Beijing, Shanghai, and Tianjin).
By the FTA, medical and dental suppliers also have the opportunity to establish joint venture clinics and hospitals that will have Australian majority with Chinese partnership in one of the areas, subject the majority of medical consultants and personnel are Chinese.
For healthcare of the elderly, Australian providers can also establish fully owned foreign owned elder care facilities in China. As per the 2015 Chinese Catalogue of Industries for Guiding Foreign Investment, the aged care institutions are encouraged and the Ministry of Commerce and Ministry of Civil Affairs have released notices to encourage the establishing large scale and also franchised aged care institutions. In the FTA, fee waivers and tax incentives are also applicable to domestic as well as foreign owned aged care facilities.
Under the FTA, R&D service providers in Australia can look to conduct R&D in China and will be permitted to conduct and provide R&D services via Australian owned agencies based in China.
Throughout the healthcare spectrum, the FTA needs that 95% of Australian exports to China will not bear tariff by 2019. To be specific, the present 4-6% tariffs on pharmaceutical products will be demolished, combined with 4% tariffs on orthopedic devices.