China’s drug and medical device sector emerges as new engine of economic growth

China’s pharmaceutical industry, whose revenue is projected to rise by 50 per cent between 2024 and 2030, has emerged as a new growth engine for the national economy as leading players ramp up investment in research and production.

The country’s drug and medical device businesses were forecast to top US$2.1 trillion in revenue by 2030 and US$3.2 trillion annually by 2050, according to estimates by UBS. In 2024, the sector generated about US$1.4 trillion in sales.

“An ageing population offers the biggest boost to pharmaceutical firms,” said Chen Chen, head of China healthcare research at UBS. “China’s per-capita spending on medical care has also been rising constantly.”