French expertise offers elderly care solution

Removal of barriers to foreign access will allow European providers to help support China's increasing senior population

Broadening foreign investment access, an improving business environment, and government support are making it easier for French companies to cooperate with Chinese partners to tap the huge potential in China's senior care market, according to French officials and industry insiders.

During a recent conference in Beijing on cooperation between China and France in the senior care sector, Olivier Richard, deputy head of mission at the French embassy in China, said many barriers to foreign access have been removed this year and French companies are being treated equally with Chinese companies.

" (That) creates a better environment for French and Chinese companies to cooperate," he said.

A graying population with longer life expectancy means surging demand for senior care facilities and professionals so seniors can enjoy a high-quality of life, he said, stressing the huge potential in the Chinese senior care market, the largest in the world.

France's senior care expertise accumulated over decades from its establishment and operation of world-leading senior care and support models, especially for dependent seniors, will be helpful to China, Richard said.

The senior care industry in France covers a wide range of areas, from architecture design, and construction of nursing homes, professional training, to home care services, and also includes services related to smart residential systems, the internet of things, insurance, medical care and telemedicine, and big data, with a number of world-leading players.

China, on the other hand, is faced with a huge challenge in caring for its rapidly increasing senior population, although it has been ramping up efforts to boost the sector, such as expanding market access, reducing fundraising costs, and cutting tax for home-based senior care service providers.

Statistics from the National Bureau of Statistics showed China had a population of 249 million aged 60 or above at the end of 2018, accounting for 17.9 percent of the total population.

Yet there were about 163,800 senior care institutions and other facilities offering only 7.46 million beds by the end of January 2019, according to an article published on the website of the Ministry of Civil Affairs.

Furthermore, according to the State Information Center, which is affiliated to the National Development and Reform Commission, about 20 percent of the Chinese population will be older than 65 in 2030, and the proportion will rise to one-third in 2050, with about 10 million suffering from Alzheimer's disease, an irreversible, progressive brain disorder that leads to memory loss and decline of thinking skills.

If 3 percent of Chinese seniors live in senior care institutes in 2025, the total number of beds should surpass 9 million by then, a recent report by Shenzhen-based Qianzhan Industry Research Institute estimated.

Benoit Colinot, senior trade adviser of Business France, said leading French elderly care companies could meet the needs of elderly Chinese through innovation and integrated solutions combining healthcare, quality of life and therapeutic architecture.

"China has the world's largest senior population, generating an unprecedented demand for elderly care," he said, adding China will need about 10 million additional nursing home beds while training an elderly care workforce of 10 million in the next 10 years.

Richard said China and France have been deepening cooperation in medical and healthcare, and French companies have achieved remarkable progress with Chinese partners since the signing of the ministerial-level memorandum of understanding on senior care between China and France last year.

Orpea, a global leader in long-term elderly care with French roots, has been actively embracing business opportunities in China.

The company offers services in nursing homes, rehabilitation hospitals and home care services worldwide; and in China, it operates two projects - in Nanjing, capital of Jiangsu province, and in Changsha, capital of Hunan province.

Nathaniel Farouz, CEO of Orpea China and Singapore, said he is impressed with the Chinese government's efforts in boosting the industry development for quality elderly care, including the practice of combining medical services and nursing care.

The broadening market access for foreign players will help the sector to prosper, he said.

Li Congrong, vice-president of Hualu Senior Care and Health Management Co Ltd, a Beijing-based State-owned enterprise, said Chinese authorities have been actively adjusting policies to create a favorable environment for the development of the senior care industry.

His company took only four years to grow into a competitive player in the market, reflecting the rapid development of the overall industry, he said.

However, he said it is important to establish detailed industry standards to ensure healthy development of the industry.

liuzhihua@chinadaily.com.cn

(China Daily Global 09/12/2019 page9)