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Health Services may Promote China’s Economic Transition

05-04-2012 10:15 BJT

By Liu Guoen, Director of China Center for Health Economics Research,Peking University

  Economic transition or transformation of economic development mode is the major background of China’s social and economic development. We hope to put the subject of health industry upgrade to the national development strategy for discussions.

  Main ways of rapid economic growth in the past three decades of China include investment, household consumption and export. According to the distribution of GDP in 2011, the corresponding figures were63%, 37% and 0.3%. The amount of products that we rely on foreigners to buy is not as many as we imagine. Investment is far more than consumption, which is increasingly serious. It’s very important for China’s economic transition to resort to consumption. I hope the medical system reform, health industry and consumption-oriented economic transition will be combined.

  To propel the development of consumption-oriented economy, we must improve the spending power of 1.3 billion Chinese people, including economic power and physical power, namely, they have to afford their eating and drinking. The consumption motive and revenue all come from the impact of national people’s health. High savings and low consumptionsare common characteristics of Chinese people, mainly due to the incomplete social security, particularly medical security. For economic transition, health-oriented economy should also be taken into account.

  How will China develop in the future? Urbanization, aging and chronic diseases will surely induce a massive market for China’s new type of health industry. We don’t wish the medical reform a start and end at the same time; rather, it should be put into full implementation to facilitate a health-oriented society. It is the optimal choice for the political stability, people’s livelihood and lift of economic benefits.

Editor:张昀 |Source: CNTV

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