Asia Healthcare Blog
Exploring the intersection of investment and development, in Asia



China, HK, Macau

May 24, 2009

Week in Review: May 24th, 2009

Beijing to raise maximum fine for smoking to 200 yuan

The reporter learned on May 17 during a simulated court activity hosted by Beijing Smoking & Health Association that the city is expected to amend its provisions banning smoking in public places, and will appropriately raise the maximum fine for individuals caught smoking illegally in public places. Drafters of the proposed regulation amendment intend to raise the upper limit of fines from the current amount of 10 yuan to somewhere between 50 and 200 yuan.

Beijing Bans Sale Of Four Medicines

Beijing is banning the sale of four kinds of medicine which are alleged to be the subject of misleading claims.

It is learned that the promoters of these medicines were accused of cheating and misleading consumers by overstating their efficacy.

The four medicines are reported in local media to be Ganbifu Soft Capsules, Wuwei Tongshuan Koufuye, Kang Shou Wan, and Fufang Shousen Yizhi Capsules. There is no word yet on what penalties the makers of these pharmaceuticals could face.

Beijing To Set Price Limits On Medicine

Beijing Municipal Commission of Development and Reform has set an upper limit for the retail price of 27 kinds of medicines.

The 27 medicines include 20 western medicines and seven traditional Chinese medicines like Milian Chuanbei Pipa Gao (Honeyed Chuanbei Loquat Ointment).

The price limit on the 27 medicines will start from May 23.

Baxter Plans Big Investment in China Medical Instruments Industry

Baxter International Inc. (NYSE: BAX) recently unveiled a plan to spend 1 billion RMB ($147 million) over the next three years to upgrade factories [...]. The company positioned the investment as a response to China’s demand for high-quality medical instruments.

China Eases Regulations for Importation of Used Equipment

The Chinese government has significantly revised its controversial regulations governing the importation of used equipment, according to the U.S. Department of Commerce — the term used medical equipment, however, was not specifically stated in the April 10th announcement. [...]

The specific impact and relevance of the change on medical equipment is not clear, according the Department of Commerce, which is working to ascertain the connection to health care and medical research.

The People’s Republic is known for its complex bureaucracy governing trade, however it is also working to build its reputation as a new medical equipment exporter. It is possible that broader trade allowances overall will encourage the flow of products both ways. Regarding health care per se, China’s vast rural populations represent an unmet need for services that will require affordable options such as used medical equipment. [...]



About the Author

James Flanagan
After a few years of living in Singapore, James headed to Montreal to study at McGill where he received a B.Com in 2006. He jumped on the first plane back to Asia and landed in Beijing. After trying his hands at a couple of different projects, he focused on developing a consulting firm focusing on Asian IT/Biotech firms. Currently, James Flanagan is on the board of The Beijing Rotaract Club, and spends most of his time working on TedxBeijing 2012 with his laptop, in Beijing, PRC.




4 Comments


  1. Hi guys,

    With respect to the last segment, here’s what came to mind almost immediately as I’d finished reading:

    Will rural Chinese — being as gregarious as they are in the smaller second- and third-tier Chinese cities — tolerate substandard medical care from potentially faulty machines with PRC mandarins are only too willing to fob off on these Western cities?

    I mean, is potentially malpractice-driven medical care in the inner-Chinese provinces preferable to none at all? Rural Chinese will talk to each other and share their experiences…hence, sending used equipment out to the regions can actually be counterproductive.

    I have my doubts about a) the provenance of the machines being sent out there and b) how they’re actually going to perform in the field.

    Thoughts?


  2. James

    @Adam
    hum…. well, I’m not familiar enough with the state of care in 2nd and 3rd tier cities. But a couple of points:
    - used medical equipment does not mean faulty equipment
    - using used medical equipment > no equipment at all

    It reminds me of the story of the Do-it-yourself Dialysis clinic that got shut down just outside Beijing.
    read about it here: http://blogs.wsj.com/chinajournal/2009/04/06/banned-by-beijing-a-diy-dialysis-clinic/
    and here:
    http://www.danwei.org/front_page_of_the_day/government_denounced_the_patie.php

    What this story spells out is the need for care outweighs the dangers in many cases. A DIY clinic points to the high costs of certain treatments and that people are willing to take the risks. It was a tough choice by the Chinese government to shut the clinic down.

    Also, medical equipment is replaced for various reasons: new technology, your budget that you want to keep high inside the structure of a institution, etc…


  3. That is so frightening…again, I’m only referring to the post-Communist example that I live as part of my day-to-day. Granted, Prague is a relative oasis to some of the stuff you’d find further east of here, and indeed my Romanian colleagues can regale you with even more sordid tales of medical woe than I can.

    Is it the same in China — you’ve got to bring your own syringes to the clinic for basic medical care? Have you and @Damjan already posted about what a typical day at the medical clinic is like? Any video footage that we can have a look at?

    –ADM


  4. James

    @Adam
    I’m not informed enough to tell you how things happen around China. I think you must know about the differences between 1st tier and 2nd tier cities and the level of care.
    My Chinese is not good enough to translate news items that I find in Chinese, but hopefully that will change with time.

    I won’t hide that I’ve heard of stories about having to bring your own needles in central regions, but at this point, I only consider it hearsay.

    Shocking video footage…. that probably won’t happen with the media controls in place here.



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