Monday, 17 November 2014

China's public hospitals and breastfeeding mums are the losers with latest free trade deal

by Michael Woodhead
China's private hospitals are the winners and breastfeeding mums are the  losers under the Free Trade Agreement Xi Jinping agreed with Australia today.

The FTA gives Australian companies unprecedented access to China's healthcare system, allowing Aussie  health providers to build and ­operate hospitals in China without the current restrictions that apply to other foreign health companies.

Until recently foreign companies have only been allowed to set up joint venture hospitals, although rules have recently been eased to permit foreign hospitals to be buy or set up hospitals and clinics in Shanghai, Beijing and Tianjin.

One of Australia's leading private hospital operators, Ramsay Health, has already announced a move to buy into a Chengdu private hospital group  that operates five hospitals. However, it remains to be seen whether other Australian companies follow suit, especially given that Australia has only a limited number of private hospital operators. Australian healthcare companies may also find it difficult to work in the cut-throat China healthcare environment as they are  accustomed to working in a heavily protected and subsidised market. Private health companies receive $5 billion in Australian government handouts a year in a support scheme introduced in the 1990s to prop up the uncompetitive industry when Australians abandoned private hospitals in favour of the public hospital system funded by Medicare.

Australians are more accustomed to dealing with China over resources than services, though one mining tycoon  has been quick off the mark to cash in on the free trade agreement to sell milk formula to anxious Chinese mothers. Billionaire Gina Rinehart, whose fortune come from iron ore mines she inherited from her father, has announced she will set up a massive dairy operation to produce milk formula for the China market. Australia's richest woman will acquire about 5,000 hectares of farmland in Queensland to that is expected to produce an estimated 30,000 tonnes of infant formula for export to China every year.

However, the move is unlikely to be welcomed by China's child health specialists, who are already struggling to raise China's pitiful 28% breastfeeding rate to somewhere near to the global average of 40%. Groups such as the World Health Organisation and UNICEF have called for urgent action to boost China's breast feeding rates, but they struggle against aggressive and unethical promotions by milk formula companies, who are also known to bribe hospitals and clinicians to promote their products.

2 comments:

  1. Foreign companies can bring much needed expertise and improve quality of Chinese healthcare.

    Chinese mothers have expressed their desire for high quality baby milk formula through their raids at the Hong Kong pharmacies for years. Now supply is projected to increase for the Chinese market through increased production from a credible international brand.

    So I think there are more winners in this case?

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  2. When women are encouraged to use milk formula instead of breast feeding, the winners are the manufacturers, the losers are the babies. Milk formula is inferior to breast feeding, any child health specialist will tell you that. The evidence is overwhelming.

    ReplyDelete

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