On Health Production and Demand: And Why an Effective Health Industry is Vital for China (and the Rest of the World)

Di Tommaso, Marco R.; Spigarelli, Francesca; Barbieri, Elisa; Rubini, Lauretta

The chapter explores the intertwined relation between health and economic growth. In China, improvements in the health status of the population have powered the economic growth experienced by the country following the launch of the open door policy. Conversely, the emergence of a Chinese middle class and the improvement of economic conditions for a substantial proportion of the population have led to an increased demand for healthcare and to an improvement in people’s health. However, these improvements have not been homogeneous across the country, which still shows large inequalities between rural and urban areas and among provinces and where the “acceptable” level of health varies. The health industry, comprising healthcare providers, financiers and producers, plays a pivotal role, also in the light of the new technologies and of the availability of Big Data, whose handling can allow to design increasingly personalized treatments. The Chinese health industry has been showing steady signs of improvements, but there still are margins for improvement, especially in the light of recent spread of Covid-19, with externalities overcoming the national boundaries.