China’s aged care sector to is expected to approach 8 trillion yuan by next year, with Beijing unveiling preferential tax policies to bolster its health.
Data from the Zhongshang Industrial Research Institute (中商产业研究院) indicates that the aged care sector in China is seeing rapid growth following demographic shifts and strong policy support.
While the aged care market in China was just 4 trillion yuan in 2014, by 2018 it had expanded to 6.6 trillion yuan in size, with Zhongshang Industrial forecasting further growth to 7.8 trillion yuan by 2020.
Fu Yifu (付一夫), senior researcher with the Suning Financial Institute (苏宁金融研究院), said to Securities Daily that China is currently undergoing rapid aging, with the percentage of the population above 65 years of age hitting 11.9% in 2018.
According to Zhongshang Industrial the aged care market still has immense potential in China, forecasting that private aged care institutions will become key players in future, with 5G technology also driving a shift towards “smart” aged care that integrates healthcare.
A recent meeting of China’s State Council introduced preferential tax policies for key services sectors including child care, aged care and housekeeping.
The State Council said that from 1 June to the end of 2025 community aged care, child care and housekeeping services will be exempt from value-added taxes, while their taxable revenue will be calculated on a 90% basis.