Health Care
The global life sciences industry is undergoing a profound transformation, with technology playing a central role in driving change. Increasingly, companies are integrating artificial intelligence (AI) and digital technologies into core functions such as research and development, finance, and operations to accelerate efficiency and reduce costs. At the same time, bioconvergence—the merging of biology with engineering, materials science, and computing—is emerging as a key trend in tackling complex biological and healthcare challenges.
Capital activity in the sector is also poised for recovery. As macroeconomic conditions stabilize and regulatory frameworks become more favourable, mergers and acquisitions (M&A) in life sciences are expected to rebound in 2025. Notably, venture capital investment in the sector rose by 10% year-on-year in Q3 2024, surpassing pre-pandemic levels and signaling renewed momentum for IPO activity in the near future.
Geopolitical tensions and global supply chain risks are also prompting companies to reassess their operational strategies and supply chain resilience. Overall, the life sciences industry is shifting toward increased digitization, interdisciplinary integration, and globalization—requiring companies to stay agile and remain competitive in an evolving global landscape.
For Chinese healthcare innovators, going global means navigating regulations, securing data integrity, and accessing clinical trial infrastructure abroad. For international biotech and medtech firms, China’s large patient base, digital hospital systems, and supportive government policies present compelling growth opportunities.
Biopharma
Artificial intelligence (AI) is increasingly applied to drug discovery and development, expected to contribute to 30% of new drug identification and accelerate personalized medicine. Meanwhile, cancer vaccines have emerged as a key innovation area, with companies like Moderna and Merck launching Phase III trials targeting non-small cell lung cancer through personalized neoantigen therapies.
Strategically, M&A activity is projected to rebound as major pharmaceutical firms seek to offset patent cliffs by expanding their pipelines and research capabilities. Geopolitical uncertainty and shifting trade policies have also prompted a move toward localized manufacturing, aimed at strengthening supply chain resilience and reducing operational risk.
At the same time, the regulatory landscape is tightening, with stricter controls on drug pricing and market access, pushing companies to balance innovation with compliance. Emerging markets, driven by rising healthcare demand and more flexible regulations, are becoming focal points for clinical trials and commercial expansion. Overall, the biopharmaceutical industry is entering a new phase in the coming years, characterized by the integration of technological breakthroughs and a reconfiguration of global strategies.
For Chinese biopharma firms, globalization means aligning with international GMP standards, building regional clinical presence, and developing cross-border licensing models. For international players, China’s fast-track approval channels, rising R&D spending, and extensive clinical networks offer a strategic platform for market entry and innovation co-development.
Medical Devices
The global medical device industry is undergoing a rapid transformation toward greater digitization and intelligence. Artificial intelligence (AI) and machine learning are increasingly used in diagnostics, imaging, and surgical assistance, prompting regulatory agencies to strengthen oversight and clinical training requirements. At the same time, robotics technology is advancing, improving surgical precision and recovery outcomes. The rise of telemedicine and wearable devices is also expanding the scope of medical device applications.
On the market side, mergers and acquisitions (M&A) have rebounded, particularly in areas such as telehealth, digital health, and high-end diagnostics. Large companies are actively expanding their product portfolios through strategic acquisitions.
However, shifting trade policies and supply chain uncertainties present new challenges—for instance, U.S. tariffs on imported devices have driven some manufacturers to consider reshoring production to reduce costs and mitigate policy risks.
Regulatory dynamics are another critical factor. Leadership changes at the U.S. Department of Health and Human Services (HHS) have raised concerns about the efficiency of the FDA’s approval processes, potentially slowing down innovation.
For Chinese medical device innovators, the priority is to build regulatory credibility, strengthen IP protections, and participate in international clinical validation. For global players, China’s digital hospital infrastructure, massive user base, and accelerating demand for home-based care present clear opportunities for market entry and co-innovation.
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