The Transformation of China’s Health Industry is a Human-Centered Value Revolution, Focused on Technological Upgrading, Precise Customization, and Value Reconstruction. By Fifi Kao
The gene sequencer at Shanghai Zhongshan Hospital’s laboratory whirrs to life and precisely captures the early warning signals of liver cancer hidden in just 0.2 milliliters of plasma – a minuscule amount of biological data that holds the potential to save a life from a sudden strike of cancer. Meanwhile, at Chongqing’s Jinfeng Laboratory, a team of scientists scrutinize four newly synthesized dual-target molecular structures on their screens, molecules that may rewrite the treatment history of a once-incurable disease. Meanwhile, in Hunan, Sinocare’s production line is packaging coin-sized glucose monitors bound for 187 countries and territories, safeguarding the dining tables of diabetes patients worldwide.
These seemingly disparate scenes collectively create an authentic portrait of transformation in China’s health industry. In 2024, the industry, worth a total of 12 trillion yuan annually and a growth rate of nearly 10% per year, has become a powerful engine for China’s economic growth. Driven by an aging population, technological breakthroughs, and an upgrade in health consumption, a shift from scale expansion to focus on quality is unfolding fast.
Technological Revolution:
Systemic Reconstruction from Lab to Industrial Ecosystem
At Chongqing’s Jinfeng Laboratory, a “superbrain storm” is rewriting the path of innovation in China’s biopharmaceutical industry. In 2024 alone, 20 research teams led by scientists like Bian Xiuwu and Duan Shumin leveraged eight major platforms – including spatiotemporal omics and single-cell multi-omics – to synthesize four AI-designed dual-target molecular entities with novel frameworks, delivering them to downstream pharmaceutical companies for conversion. This “original innovation + industrial synergy” model is the core logic behind the Western Science City’s “Life Core Valley.” With a 5.55-billion-yuan investment, projects like the Yidu Vaccine Production Base and Cytiva’s high-end biopharmaceutical manufacturing base are creating a fast track for industrializing scientific achievements.
The clinical revolution in precision medicine has also taken root in top-tier hospitals. Shanghai Zhongshan Hospital, with its self-developed seven-microRNA detection kit, achieved a breakthrough in diagnosing liver cancer with just 0.2 milliliters of plasma – boasting 84% sensitivity, a 30% improvement over traditional alpha-fetoprotein tests, and the ability to detect cancer 1-1.5 years earlier. From January to November 2024, the hospital’s precision medicine center converted eight patented inventions, six of which were listed in the National Medical Products Administration’s first “In Vitro Diagnostic Reagents Self-Developed by Medical Institutions” catalog. This HDT (Hospital-Developed Testing) model is now being extended nationwide, breaking down institutional barriers between research and clinical application.
The fusion of digital therapeutics and smart hardware is reshaping health management.
Sinocare’s second-generation continuous glucose monitor already serves 25 million users globally through its “digital connectivity + digital diabetes + digital operations” system, its sleek design seamlessly integrating glucose monitoring into daily life.
Sansure Biotech’s dual-chip rolling gene sequencer fills a domestic gap, while AVT’s “automated medical microscopy morphological testing” technology is a global leader.
In Suqian, Jiangsu, the “Xianmi Smart Management Platform” embeds agricultural digital tech into traditional rice farming, enhancing product quality and health right from the planting stage.
In Hainan, digital therapeutics are used for early Alzheimer’s screening, slowing disease progression through cognitive training games. Meanwhile, Beijing Huanshenghui’s AI health management cloud platform analyzes users’ heart rate variability via wearables to predict stress overload risks.
When long-term care insurance policies began covering rehabilitation robots, an innovative “hardware + service + insurance” model emerged, transforming home-based elderly care. Data shows that every 1% increase in device penetration reduces nursing costs by over 20%.
Precision Customization:
Demand Leap from Demographic Segmentation to Scenario-Based Innovation
Faced with China’s “silver wave” of 310 million seniors (22% of the population), the health industry is witnessing structural opportunities.
The medical food sector is booming, with a 2024 market size of 23.42 billion yuan and a 30% annual growth rate. Faster regulatory approvals, expanded insurance coverage, and breakthroughs in synthetic biology and AI-customized nutrition are shifting these products from clinical aids to daily consumption.
Legend Group’s Leprotech spent eight years developing a milk mineral salt-glucosamine chondroitin powder, innovatively blending whey protein to create a “bone-muscle dual-protection system” addressing seniors’ joint and muscle decline. As skeletal muscles weaken with age, calcium alone can’t prevent falls – muscle protection is equally critical. This World Food Innovation Award-winning product reflects deep insight into the needs of an aging society.
The rise of “New Chinese Wellness” is revitalizing traditional food-as-medicine.
Hema’s “Chenpi Sishen Water” and “Summer Refresh Vitality Water” series is promoting a minimalist “ingredient-only” means of hydration.
Luckin Coffee’s “Clean Formula Initiative” has eliminated powdered creamers, trans fats, aspartame, and hydrogenated oils from all drinks.
HeyTea’s “Super Plant Tea” series, selling 37 million cups yearly, infuses modern tea with superfoods like kale and beetroot.
At Huanshenghui, personalization is central. Its services target four major health risks: tumors (25%), cardiovascular (47%), metabolic (12%), and neurodegenerative (4%). For a 41-year-old diabetic entrepreneur, a “Life Canopy Plan” combining genetic testing, dynamic monitoring, and AI analysis reduced HbA1c from 8.7% to 6.5%, LDL by 27%, and weight by 4 kg in three months. This “data-driven + multidisciplinary intervention” model is redefining health management standards.
Scenario-based innovation is erasing product boundaries. Junxiaobao’s “microencapsulation” tech enables probiotic snacks that dissolve in 3 seconds, freeing health supplements from pillboxes to desks and gyms. Yan Zhi Wu broke gender norms by inviting Vanke founder Wang Shi to endorse its “Executive Bird’s Nest,” pioneering men’s wellness and propelling the industry toward its current 55.9-billion-yuan market value.
Value Reconstruction:
Industrial Ascension from Products to Ecosystems
On Guangzhou’s International Bio-Island, the Greater Bay Area’s first national mega-science facility – the Human Cell Atlas – is mapping 40 trillion cells’ dynamic evolution. Nearby, Yunzhou Bio’s gene delivery tech, underpinning mRNA vaccines and CAR-T therapies, is serving 4,500+ global institutions, and had earned a spot on the 2024 Global Unicorn List. This “basic research + industrial conversion” dual helix is fueling the rise of Guangzhou as a cell and gene therapy hub.
Green manufacturing is now imperative. Leprotech’s “triple-carbon” strategy achieves 98% paperless operations via ERP, cutting 500,000 documents yearly. Its lutein-MCT-black pepper extract combo boosts bioavailability, while ginseng oral liquid production recycles waste. GPC’s 22-year drug take-back program collected 1,800+ tons of expired meds, while cornstarch-based plastics and bamboo fiber packaging embed eco-values into lifecycle management.
Global IP and tech exports are soaring. By 2025, China will account for 29.5% of global drug pipelines, and its patent filings have been leading for 11 straight years. Hengrui’s $6B+ GLP-1 deal with a U.S. firm via “license + equity” NewCo model retains 19.9% long-term stakes. Sansure builds chem plants in Indonesia, offering end-to-end diagnostic solutions, while JiuZhiTang’s seven TCMs enter Brazil, globalizing traditional medicine.
Industrial collaboration bridges resource gaps. JiuZhan Agriculture’s “AI + heritage” oil-tea system empowers 2,000+ farmers across Fujian and Anhui, boosting income by 3,000 yuan/acre yearly. Its “Silver Health Initiative” supplies affordable functional foods and pilots “diet + smart monitoring” chronic disease management, improving lipid profiles in 78.9% of participants within three months.
Future Vision:
Ecosystem Competition and New Health Paradigms
At this inflection point, three trends – tech revolution, precision customization, and value reconstruction – are redrawing the industry’s boundaries.
Tech convergence will dissolve barriers. Brain-computer interfaces show promise in Alzheimer’s screening, with a projected $6.52 billion global market by 2030. Bio-manufacturing, a “platform industry,” will hit 1.8 trillion yuan in China by 2030 (21% CAGR). Tsinghua’s “medical-engineering integration” model, like Cheng Jing’s ocular diagnostic tool analyzing TCM syndromes via eye images, has great interdisciplinary potential.
Preventive medicine will dominate. AI-powered risk prediction can warn of complications six months early. The value of the home health management market will exceed 80 trillion yuan by 2025, making “healthcare at your doorstep” a universal necessity. Huanshenghui’s data shows systematic interventions can reduce lifelong major disease risks by over 90%, overturning reactive treatment models.
Cell health is benefitting from policy momentum. Guangzhou’s new biomanufacturing policy allows cell/gene therapy firms in Nansha to conduct restricted clinical applications and welcomes foreign R&D in genetic diagnostics. Xiangjiang New Area’s biomed sector, targeting 120 billion RMB by 2025, focuses on TCM and devices, injecting fresh momentum.
The future begins today. As the health needs of 1.4 billion people merge with innovation, a new ecosystem emerges – one that creates economic value while protecting the planet, honors individuality while promoting equity. Guided by the vision of “Healthy China 2030”, this symphony of technology, precision, and reconstructed values will ultimately contribute unique Eastern wisdom to global health.