Exporting Chinese medicine

As the nation ponders its health, some see new opportunities

Editor's Note: Statistics show that the intake of various trace elements by Chinese people is far below what the human body needs.

In past years, both the protein and the high calorie intake of the Chinese increased significantly, but the intake of some important substances such as dietary fiber and trace elements reduced instead of increasing.

This matter has aroused the attention of the government. The health industry is under the microscope and will play a greater role in economic development in the future.

The US health industry will be worth $1 trillion in the next five years, Paul Zane Pilzer, an American economist and the author of seven books, said during an interview with China Business Weekly reporter Mao Lijun.

He also said the health industry in China will be booming and theories of traditional Chinese medicine will become increasingly popular in the world.

The health economy is leading the development of the overall economy, he said.

Q: What is the difference between the health industries of China and the US?

A: I was invited by the Development and Reform Department to China. During this visit, we shared some lessons about the nutritional health of other countries, and also discussed some potential opportunities in public nutrition and health.

In the US, now, we spend $2.5 trillion just on sickness care, almost half the size of China's economy. Public healthcare reform in the US is an important issue and the national policy is discussed intensively.

The main reason for the huge medical costs is that there was no concern about proper nutrition in previous years.

In the US 65 percent of the population is overweight and 30 percent of them are obese. Some experts speculate that 95 percent of the $2.5 trillion spent on healthcare could be saved if we took preventive measures. Unfortunately, China is also following the eating habits of Americans.

In the more well-off Chinese cities, about 50 percent of the population is overweight, and 7 percent of them are obese, according to clinical assessments.

Of America's 300 million people, about 50 million people become healthier as they grow older because they often go to gym, take dietary supplements and eat more healthily. These are the people that I paid great attention in my book, The New Wellness Revolution.

The wellness industry in the US is worth $500 billion and I am very confident that it will double to reach $1 trillion in the next five years.

Another purpose of my visit is to look at the booming wellness industry in China and its centuries-old traditional Chinese medicine. I believe there are things you can do before you get sick. In the west, you don't go to see a doctor or don't focus on your health until you get really ill.

Q: Considering the current health industry trends, how far away do you think we are from The New Wellness Revolution in China?

A: I think more and more people around the world are now beginning to take a very positive attitude towards life to slow down their aging and maintain healthier living conditions. I am very pleased that The New Wellness Revolution has now been translated into 25 languages, and there are about 50 different versions in different countries. This shows that people are very interested in the wellness industry.

This is my first visit to China, and I believe that the Chinese government has realized the importance of the wellness industry. For example, obesity will likely become a great health insurance burden to the Chinese government. It is time now for China to launch a wellness industry because there already are 195 million obese people here. It is not necessarily an import business. I also met experts in traditional Chinese medicine in China. The theory of traditional Chinese medicine has now become more and more popular in the world and people are beginning to seek some Chinese medicine theories such as the comprehensive and integrated treatment theory for a person's health.

Q: Chinese medicine is now increasingly interested in overseas methods. Do you think China could seize an opportunity here?

A: It's a specific business question. During my trip, I found some Chinese medicine companies I contacted were trying to answer this question too.

In the West, there are tens of thousands of small companies offering what are called alternative medical services. However, there are no large brands or people with the ability to bring their scientific achievements to the public.

From discussion with Chinese medicine experts, I understand the biggest obstacles preventing Chinese medicine entering America are legal barriers. Because in the US state laws are different, people who want Chinese medicine to enter the US market have to work with 50 different governments. It is going to be a lot of hard work but it's worthy trying. America needs Chinese medicine, and China needs to bring Chinese medicine to the world.

Q: In your book you mentioned the nutritional wellness industry would have a significant impact on the national economy. Could you say what the impact will be of the wellness industry developing in China? Do you take any health supplements?

A: I'd like to answer the second question first. The answer is yes. But I could not tell you which brand I take. I have said before in many places I am not a biologist or a scientist but an economist. We talk about business development history, not products to take. Chinese medicine is backed by very good theory. If it could be brought to the world successfully, it should bring the Chinese economy far-reaching influence.

Q: The health supplement market has aroused our attention. How do you evaluate the Chinese market? What has Amway done in this area ?

A: The level of micronutrient intake and the industry development are highly unbalanced in the country. Amway tries to play its role in it. While providing products to the market, Amway did a lot of product investigation, and developed the corresponding products according to the data and the status of Chinese residents. In 2006, Amway supported a nutrition enhancing project about the rural boarding students in poverty. The students had grown 1.6 cm tall after adding some essential nurture in less than two years. Comparing with the other same-age students without adding any nurture, this data was a very obvious change.

(China Daily 12/28/2009 page2)