This January 2018 report is the latest in a series of 'Demystifying Chinese Investment in Australia' reports, by KPMG Australia and The University of Sydney's Business School. It examines Chinese investment in the Australian healthcare sector for the calendar years 2015, when we first recorded investment into the sector, to December 2017.
Key findings
From 2015 to 2017, Chinese investment in Australia’s healthcare sector totalled AUD 5.5 billion.
By comparison, Chinese Investment in US’s healthcare sector totalled USD 4.5 billion from 2015 to 2017.1
Investment is concentrated on Australia’s health supplement and healthcare service delivery sectors, with no major investment in pharmaceuticals, biotechnology or aged care.
New South Wales has attracted 49 percent of Chinese healthcare investment between 2015 and 2017 to date, followed by Victoria with 45 percent and Queensland with 6 percent.
Chinese investors are predominantly private companies from diverse backgrounds, including hospitals, specialised healthcare providers, pharmaceutical companies, construction companies and private equity.
China’s healthcare spending is expected to grow by 8.1 percent annually over the next 5 years.
Australia’s attractions for China include the digitisation of healthcare services and technical capabilities, management expertise, a stable political and economic environment, and cultural diversity.