AI, Biomanufacturing, and Six Takeaways from China’s Government Work Report
On March 4, China’s annual Two Sessions commenced. During the opening of the National People’s Congress (NPC), Chinese Premier Li Qiang presented the Government Work Report to NPC delegates, akin to the State of the Union address in the United States
The report covered a broad spectrum of issues, with six key messages emerging, spanning artificial intelligence, biomanufacturing, healthcare, and economic policies.
1. The Looming Obesity Tsunami, Especially Among Youth
An unintended consequence of the one-child policy has been rising children's obesity rates. Just a decade ago, this issue was barely acknowledged, but today, obesity is widespread.
According to the 2022 China Residents Dietary Guidelines, 19% of children and youth aged six to 17 are overweight. The prevalence of overweight children under six years old has also risen to 10%, with increasing trends across all age groups.
To combat childhood obesity, the government has placed greater emphasis on physical education (PE), mandating a minimum of two hours per day for PE and activities to counter myopia and excessive weight gain.
Premier Li Qiang highlighted obesity as a significant concern in his Work Report: “We will do more to advocate science-informed exercise among young people and provide health intervention services for them. We will see that our young people build willpower and stay physically and mentally healthy through sporting activities.”
Health Indications: health intervention services to reduce overweight could mean increased weight monitoring and diet guidance. It could also mean a potential market for weight-loss interventions such as GLP-1s. For now, these medicines are approved for adult use.
2. Crackdown on Medical Insurance Fraud
Health insurance fraud remains a major concern for the National Health Security Administration. The government aims to strengthen oversight mechanisms to ensure that medical insurance funds are utilized efficiently and transparently.
“We will build comprehensive tracing mechanisms for drugs and medical consumables and step up supervision over medical insurance funds to see that every cent is spent on improving the people’s health and well-being,” the report states.
Notably, in 2023, UK drug manufacturer AstraZeneca was allegedly involved in a health insurance fraud case linked to one of its cancer drugs, underscoring the urgency of stronger regulatory enforcement.
Health Indications: drug makers must take compliance into consideration, and medical insurance fraud is one area that could see more compliance crackdown.
3. Public Health Funding Challenges
Addressing financial challenges in public health, the government announced an increase in subsidies:
Health Indications: The Public health funding challenge will be likely to translate into more drug price pressure.
4. Mental Health, Pediatrics, Pathology, and Senior Care in Focus
A series of severe public incidents in 2024, including a tragic vehicular attack in November that killed 35 people, have spotlighted gaps in mental health services and public safety measures.
In response, the government has pledged to expand access to essential services:
Health Indications: Senior care, pediatric drugs, and mental health are slated to see more policy support as Chinese society is rapidly greying.
5. Healthcare Cost Control and Improved Reimbursement
The government remains committed to reforming public hospitals to enhance affordability and efficiency.
“We will continue to deepen the reform of public hospitals to see that they better serve the public interest, promoting dynamic staffing adjustments, establishing mechanisms to ensure that medical charges are primarily based on medical services, and improving the remuneration system,” the report states.
Health Indications: Public hospitals remain challenging, and previous issue of slow payment to drug makers to continue.
6. AI and Biomanufacturing Among Top Industries for Policy Support
As China seeks to cement its position as a global leader in innovation, the government is ramping up investments in emerging technologies.
“We will establish a mechanism to increase funding for industries of the future and foster industries such as biomanufacturing, quantum technology, embodied AI, and 6G technology,” Premier Li stated.
The emphasis on AI and biomanufacturing highlights China’s ambition to drive technological advancements and secure a competitive edge in these critical sectors.
Health Indications: AI-assisted drug development will retain the momentum, driven by China's AI breakthrough and Beijing's emphasis on self-reliance on high-tech such as AI, biotech manufacturing, and quantum computing.
Final Thought:
China’s 2024 Government Work Report outlines a mix of social, economic, and technological priorities. From tackling obesity and healthcare cost control to cracking down on insurance fraud and investing in cutting-edge industries, we will keep close tabs on any future DeepSeek-kind breakthroughs.