A Song of Fire and Ice in the PRC M-Health Market

• Author: Zhang Yunwei (Mark) (partner),Yao Jinchuang(associate),Zhan Jia(assistant associate)
• Published date: 08/09/2016
• Citation: jd0254
• Date: 08 September 2016
• Subject Matter: Economic Law

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By Zhang Yunwei (Mark) (partner), Yao Jinchuang(associate) and Zhan

Jia(assistant associate)

With the rapid development of information network technology, healthcare system

reform and M-health policy support from the PRC[1] government, the Chinese

mobile health market which emerged in 2014 has grown quickly. More and more

pharmaceutical and medical device manufacturers and trading companies

(“Healthcare Companies”) are actively seeking to engage in the Chinese mobile

health market. This trend which affects the relationship between Healthcare

Companies and patients, may result in the reform of the current product sale and

promotion models of Healthcare Companies. However, when the “fire” of Healthcare

Companies’ investment passion meets the “ice” of Chinese regulators regarding

online medical services, internet driven hospitals and data privacy, how will

Healthcare Companies tackle the challenges to ascend the “Iron Throne” of the

“Westeros” of Chinese M-Health market.

1. Rise of Kings—Various Methods Adopted by

Healthcare Companies to Engage in the Chinese

Mobile Health Market

The emergence of mobile health has created more ways to change the circulation of

information in the healthcare industry. In concert with this trend, Healthcare

Companies have developed various innovative market practices.

Under traditional business models, Healthcare Companies receive feedback on the

sales of pharmaceuticals and medical devices ( “Healthcare Products”) and market

information through the supply chain of “Healthcare Companies—Medical Institutes

—Patients”. Medical institutes are the primary target customers of Healthcare

Companies’ marketing strategies and underpin the basic form of their promotional

activities. However, the decentralization caused by the Internet and the Chinese

08 September 2016

A Song of Fire and Ice in

the PRC M-Health Market