Multinationals confident in China's health supply chain

Expos usually see exhibitors display their latest or edge-cutting technology and equipment. At the second China International Supply Chain Expo (CISCE), however, companies have showcased their supply chain networks and cooperation.

The CISCE is the world's first national-level exhibition focusing on supply chains. Concluded on Saturday, the expo gathered industry leaders and experts from around the world, promoting global cooperation on industrial and supply chains.

GE HealthCare jointly exhibited with over 10 of its suppliers at a booth, showcasing advanced medical equipment, including an MRI scanner and molecular imaging systems, as well as core components.

"Collaborating with GE HealthCare allows us to learn more advanced technology and industry practices," said Hedy Han, a project manager at Microfits (Beijing) Technology, which produces CT components such as collimators.

GE HealthCare operates seven factories across China. Zhang Yihao, president and CEO of GE HealthCare China, said that a stable supply of medical equipment is essential to saving lives, and that China's supply chain system contributes to global health solutions.

"By fostering mutual growth, we can ensure a stable and efficient supply chain that connects China to the world and the future," Zhang said, acknowledging China's advantages in talent, manufacturing and innovation.

This year, China has launched a series of policies and measures to deepen opening-up in sectors such as elderly care and health care.

In one example, Chinese authorities on Friday unveiled a plan to allow the establishment of wholly foreign-owned hospitals in some major cities, including Beijing and Shanghai, as well as the island province of Hainan, in a move to open up its medical sector further. In another, China has also made efforts to accelerate the approval of new drugs already on the overseas market.

At the expo, Danish pharmaceutical company Novo Nordisk showcased Wegovy, a weight-loss drug containing semaglutide as its key ingredient.

The drug has captured public attention as combating obesity is an issue of widespread concern. The drug is now available as a prescription medicine in hospitals and on multiple e-commerce platforms after entering the Chinese market in November this year.

"We are glad to participate in the expo and seek more suppliers in the health and life chain. We will continue to work with our partners, and better serve our Chinese patients," said Christine Zhou, Novo Nordisk's senior vice president and president of the China region.

The pharmaceutical giant has cooperated with Chinese companies to build a modern warehousing center in Shanghai, aiming to strengthen the reliability of the drug supply chain. It has also launched obesity education courses with the help of an online patient services platform.

The big health industry is characterized by wide coverage, a long industrial chain, spillover effects and strong agglomeration, among other features. It is among the world's strategic emerging industries with great growth potential.

A report released by the China Consumers Association in August indicates that China's big health industry will hit 9 trillion yuan (about 1.25 trillion U.S. dollars) in revenue this year. The industry, which covers medical and health products, nutritious food, medical and wellness devices, and health management and consultation, is projected to exceed 17 trillion yuan by 2025 and 29 trillion yuan by 2030.

The healthy life exhibition area at the CISCE not only attracted global medical equipment and pharmaceutical giants, but also drove the participation of companies such as Starbucks, Procter & Gamble, and Panasonic. These companies showcased technology and products related to healthy diets, healthy daily necessities and healthy elderly care.

Targeting the silver economy, Panasonic displayed a smart electric bed with a back-pressure-relief system, designed to help elderly people get in and out of bed more easily. It also presented a shower room with shower heads mounted on grab bars and a shower seat, which helps elderly people bathe safely and conveniently.

These elderly-friendly products have already been put into use in the Yada Panasonic Community in the city of Yixing, east China's Jiangsu Province. The community is Panasonic's largest smart retirement community in China and the first named Panasonic community overseas.

Tetsuro Homma, executive vice president of Panasonic Holdings Corporation and group chief executive for China and Northeast Asia, said Panasonic will continue to integrate its expertise in elderly care services and its experience of China's unique conditions, with the aim of expanding the blue ocean market of the silver economy.

Homma also noted that China has advantages in its stable, reliable and flexible supply chain, and that over 6,000 Chinese suppliers provide Panasonic with raw materials, parts and finished products.

To promote the global pursuit of health and well-being, Chinese and international companies are forming closer partnerships to strengthen industrial and supply chains.

"Hand in hand with Chinese partners, we hope to make efforts to ensure the stability and development of the global industrial chain and supply chain," Homma said.