(This is a snapshot of the Chinese economy during the Massachusetts - China Innovation Partnership Mission in 2007)
China is a growing source of economic activity, and the Chinese government has called for prioritization of science and technology. Massachusetts generated $1.3 billion in manufactured goods exports to China in 2006. China wants to shift its image as a country focused on low-wage manufacturing to one of sophisticated research, development and innovation. This dynamic will shape China's relationship to Massachusetts on this trade mission and in its continued relationship with the Commonwealth.
Life Sciences Sector
- China is a key location for market growth in the life sciences sector, for both consumer market expansion and as a location for research and development. The landscape for life sciences products has changed rapidly in the last several years, with the Chinese government's involvement increasing in effectiveness and sophistication.
Current economic growth projections for China generally far exceed most other industrialized countries. This market expansion is both general and specific to life sciences industries (all dollar figures in USD):
- 44% GDP Growth projection between 2004 and 2010.
- Total health care growth projection to move from $34 billion in total health care spending in 2000 to $150 billion in 2010, a compound annual growth rate (CAGR) of 16%.
- Projections in the pharmaceutical industry show growth from $18 billion to $70 billion in 2010, accounting for a 17% CAGR.
- In the medical devices market, a growth of $3.2 billion to $14.8 billion is projected between 2000 and 2010, a CAGR of 19%.
- Projections also estimate that China will be the 5th largest pharmaceutical market by 2010 and the 3rd largest market for medical devices by 2010.
Clean Energy Sector
- China's clean energy development has grown rapidly in recent years - a trend that is expected to continue as the country strives to generate 20 percent of its energy from renewable sources by 2020. There will be a unique window of opportunity in the coming years for clean energy technologies developed in Massachusetts to be in China.
- Massachusetts' highly skilled workforce, leading universities, venture capital community and entrepreneurial environment make the Commonwealth an attractive site for Chinese investors to look for opportunities around clean energy.
- Massachusetts' clean energy cluster of more than 550 companies represents a healthy, growing ecosystem of small and medium-sized companies that present myriad opportunities for joint ventures, partnerships, technology licenses and co-investment to exploit market opportunities both in China and the US.