China’s healthcare market has experienced remarkable growth over the past decade with the government investing billions into its medical and pharma industry. In 2021, the sector was valued at approximately RMB 10 trillion (US$1.5 trillion). This rapid expansion aligns with the government's ambitious “Healthy China 2030” initiative, which targets a market value of RMB 16 trillion (US$2.4 trillion) by 2030. As the nation progresses toward this goal, key segments within the industry—such as pharmaceuticals, medical devices, and healthcare services—are experiencing significant transformations. Pharmaceuticals remain one of China’s most robust healthcare sectors. Data from the National Medical Products Administration (NMPA) reveals that in 2021, sales across seven major pharmaceutical categories—including Western medicine, Chinese patent medicine, and Chinese medicinal materials—reached RMB 2.61 trillion (US$404.5 billion). The pharmaceutical industry’s expansion is driven by several factors, including an aging population, increased government investment, and rising consumer demand for both traditional Chinese and Western medicines. The push for innovation in biopharmaceuticals and the development of new medical technologies also contribute to the sector’s upward trajectory. The number of healthcare institutions in China has been steadily increasing. By the end of 2021, there were over one million healthcare institutions, including 36,570 hospitals—a rise of 1,176 from the previous year. Of these, 11,804 were public hospitals, while 24,766 were private. This equates to an average of two hospitals per 100,000 residents. This expansion is mirrored in the financial performance of hospitals. In 2021, hospital revenue reached US$580 billion, reflecting a 12.9 percent increase from the previous year. Projections indicate that revenue could approach US$1 trillion by 2027, with a CAGR of 7.57 percent. This growth is fueled by the increasing demand for medical services.