The Chinese market represents a large and attractive growth opportunity. Increasing health needs, driven by an expanding and ageing population, has resulted in a heightened focus on healthcare and innovation.
China now ranks second in the world for citations for the number of scientific papers produced, behind the United States, based on industry data as of November 2019. The Chinese government has placed scientific and technological innovation at the centre of the long-term socio-economic development of the country and is supporting this initiative through funding, reform and societal status. In 2018, China spent approximately $293bn on research and development, which was 2.1% of the country’s GDP and an 11.6% increase compared to 2017. We expect to see continued growth in research and development spending in China.
In March 2019, the government announced the intention to increase research efforts and enhance innovative capabilities as well as encouraging enterprise-led industry-academia research collaborations. In 2019/20, sales in China contributed to 16% of our catalogue sales, and we believe the Chinese market has the potential to grow to become the same size as the US market for our business over the next 15 years.