The negatives related to doing business in any ‘emerging’ economy, let alone a large, wealthy and volatile one such as China, are easy to enumerate and range from a poorly developed legal system, a multi-level and often opaque regulatory environment through to government preference for local companies.
Because much of the world’s growth in biotechnology and the health sector will occur in such environments, Australian business must adapt quickly to learn how best to take advantage. Many Australian biotech companies are already doing business in China and are involved in a range of activities such as joint ventures, contract research, clinical trials, sales and marketing, manufacturing and sourcing investment funds and Chinese ‘partners’.
For companies involved in these activities it is becoming increasingly important to have IP secured in China. Chinese ‘partners’ and investment funds are responding to the Government’s unwavering support for their fledgling biotech industry by seeking opportunities not only from Chinese entities but from foreign companies who have their IP protected in China.