Zhu Qinhao, Director of Shanghai Civil Affairs Bureau: Seizing Opportunities and Addressing Challenges through Collaborative Innovation to Advance the Rehabilitation Assistive Devices Industry
On November 5, the second China International Import Expo officially opened in Shanghai. At the same time, the 2019 Yangtze River Delta International Forum on Innovation in the Rehabilitation Aids Industry kicked off at the National Exhibition and Convention Center in Shanghai.
At the forum, government officials and industry experts, entrepreneurs, and emerging innovators from the medical, rehabilitation, and elderly care sectors—both domestic and international—gathered to engage in an in-depth discussion on the innovative development of the rehabilitation assistive device industry in the Yangtze River Delta region. Zhu Qinhao, Director of the Shanghai Municipal Civil Affairs Bureau, shared insights on the opportunities, challenges, and collaborative innovations brought to the rehabilitation assistive device industry by the integrated development of the Yangtze River Delta. VCBeat has compiled and edited his keynote speech.
Zhu Qinhao, Director of the Shanghai Municipal Civil Affairs Bureau
First, elevating it to a national strategy will facilitate the development of innovative institutional sharing mechanisms.In May 2019, the Outline Plan for the Integrated Development of the Yangtze River Delta Region was reviewed and approved at a meeting of the Political Bureau of the Communist Party of China Central Committee and subsequently issued by the State Council. On June 3, Han Zheng, a member of the Standing Committee of the Political Bureau of the CPC Central Committee, Vice Premier, and head of the Leading Group for Promoting the Integrated Development of the Yangtze River Delta, presided over the first meeting of the Leading Group. Qingpu District in Shanghai, Suzhou City in Jiangsu Province, and Jiaxing City in Zhejiang Province are jointly building the Yangtze River Delta Eco-Green Integrated Development Demonstration Zone, taking the lead in exploring the transition from project-level integration to institutional integration. This initiative is forging a new path that transcends administrative boundaries, promotes co-construction and shared benefits, and achieves mutual reinforcement between ecological conservation and economic and social development.
In May 2018, at the inaugural Yangtze River Delta Civil Affairs Forum, the civil affairs departments of Shanghai, Jiangsu, Zhejiang, and Anhui signed a memorandum of cooperation to advance the integrated development strategy for civil affairs work in the Yangtze River Delta. The four parties agreed to strengthen policy coordination, particularly in areas such as policy access and operational standards, and to explore the feasibility of establishing unified regulations or standards across the Yangtze River Delta in selected civil affairs sectors. They emphasized the need to align planning efforts, adopt the integration of the Yangtze River Delta as a fundamental principle in plan formulation, promote platform consolidation, and enhance inter-provincial collaboration in civil affairs work, with a particular focus on achieving connectivity and information sharing among civil affairs information systems in the region.
Second, its unparalleled locational advantage serves as a focal point for global factor resources.The Yangtze River Delta urban agglomeration has joined the ranks of the six major globally recognized city clusters, playing a pivotal role in China’s national economy. The region shoulders multiple missions, including implementing the national strategy for opening-up and fostering coordinated development among eastern, central, and western regions, so as to effectively integrate regional innovation resources and fully leverage the advantages of industrial clustering and collaborative innovation. In key industrial sectors, pursuing collaborative innovation has become an inevitable trend.
The Yangtze River Delta’s strategic core position endows it with immense radiating and leading capabilities. The agglomeration of global factors and resources in the region has made it a vital source for new scientific developments, technological inventions, and emerging industrial directions. In terms of R&D personnel, the Yangtze River Delta concentrates one-quarter of China’s “Double First-Class” universities, national key laboratories, and national engineering research centers. Taking Shanghai as an example, since the reform and opening-up, the number of various research institutions in the city has increased from 153 to 2,923. This represents not only a 19-fold increase in quantity but also a significant improvement in quality, including 452 foreign-funded R&D institutions and 85 national-level R&D institutions such as national key laboratories.
Third, a complete industrial chain foundation will help enhance the allocation efficiency of regional resources.The Yangtze River Delta boasts a robust industrial foundation, complete supply chains, clustered industrial categories, and strong complementarity in its industrial structure. With over 40,000 varieties of rehabilitation assistive products worldwide, their manufacturing requires coordination across multiple industrial sectors. In 2018, the combined GDP of the three provinces and one municipality in the region reached RMB 21.2 trillion, accounting for 23.3% of China’s total. The per capita GDP stood at RMB 100,000, significantly higher than the national average of RMB 64,600. Covering an area of 359,000 square kilometers, or 1/26 of China’s total land area, the Yangtze River Delta is home to nearly one-third of the cities on China’s urban economic rankings. Taking Shanghai as an example, its citywide GDP in 2018 was RMB 3.27 trillion, with total general public budget revenue reaching RMB 1.76 trillion.
Fourth, population aging and the rising proportion of the oldest-old will help stimulate the rehabilitation assistive devices market.Rehabilitation assistive devices are crucial to public health. They hold practical significance not only for guiding and stimulating new consumption and cultivating robust new growth drivers, but also for addressing population aging, meeting the diverse needs of the elderly and people with disabilities, and advancing the Healthy China initiative. Taking the Yangtze River Delta region—comprising three provinces and one municipality—as an example, Shanghai has 5.0328 million registered residents aged 60 and above. The total registered population aged 60 and above across the three provinces and one municipality amounts to 45.8998 million, accounting for 22.25% of the total registered population. If a rate of 21% is considered indicative of deep aging, this region has already reached that stage. Drawing on the experiences of developed countries in coping with population aging and advanced aging, there is substantial demand for rehabilitation assistive devices among individuals aged 75 and older. Conservatively estimated, the industrial scale in the Yangtze River Delta will be no less than RMB 700 billion.
Fifth, similar customs and shared cultural ties among residents will facilitate the formation of an integrated service model.The well-developed infrastructure network, including high-speed rail, highways, and other transportation systems, is highly advanced. Building on this foundation, the Yangtze River Delta region has begun to promote interconnectivity of major public service infrastructure through unified planning and is exploring an integrated model for public services.
First, the industry lacks sufficient innovation momentum.The manufacturing and configuration services for low- to mid-end rehabilitation assistive devices have begun to take shape. However, there are relatively few high-end rehabilitation assistive devices with independent intellectual property rights, and a significant portion of the high-end rehabilitation assistive products in the domestic market are supplied by foreign companies. Only a handful of enterprises possess strong R&D capabilities, and fewer than 10 companies have an annual output value exceeding RMB 100 million.
Second, the current industrial scale is limited.According to statistics from the Ministry of Civil Affairs, the scale of China’s rehabilitation assistive device industry was approximately RMB 430 billion in 2015, and is projected to exceed RMB 1 trillion by 2025. China has become the country with the largest population in need of rehabilitation assistive devices and the greatest market potential. However, enterprises in the Yangtze River Delta region face insufficient promotion of product applications, lack brand building, and operate in a highly fragmented market. User demand remains underexploited, resulting in a competitive landscape characterized by a large market dominated by small enterprises.
Third, the payment system remains imperfect.Compared with developed countries, a payment system for rehabilitation aids for the elderly has not yet been established. After Shanghai issued its implementation guidelines, policies providing financial subsidies and rental services for rehabilitation aids to specific groups remain in the pilot phase. A comprehensive industrial support policy framework has not yet taken shape. The inclusion of rehabilitation aid-related expenses in medical insurance or long-term care insurance coverage requires further study. Currently, there is a limited variety of rehabilitation aids available to the elderly, with costs borne primarily by individuals. Payment issues hinder the upgrading of consumption in the rehabilitation aids sector and impede the healthy development of high-quality, high-performance rehabilitation aids.
Fourth, there is a shortage of frontline service personnel. In Shanghai, rehabilitation physicians account for only 0.4% per 100,000 population, whereas in developed countries and regions such as Europe, the United States, and Japan, the figure ranges from 30 to 70 per 100,000. The shortfall in skilled vocational talent is particularly pronounced, and bottlenecks must be addressed to foster the development of related skilled professions, such as rehabilitation assistive product fitters.
First, establish the foundational framework for the innovative development of the rehabilitation assistive industry.In October 2016, the State Council issued the “Several Opinions on Accelerating the Development of Rehabilitation Assistive Devices.” Since the release of this document, the rehabilitation assistive device industry in the Yangtze River Delta has shown a positive trend of accelerated development.
The synergistic momentum for the development of the primary industry has basically taken shape.To implement the spirit of the State Council’s Several Opinions, Shanghai Municipality and Jiangsu Province successively established inter-departmental joint conference systems led by their respective civil affairs departments in May and July 2017 to accelerate the development of rehabilitation assistive devices, thereby creating a well-coordinated working environment with clearly defined responsibilities.
The knowledge system for the development of the secondary industry has been preliminarily established.The government has established a number of well-known industrial parks, cutting-edge innovation platforms, advantageous and distinctive products, and new service models. In September 2017, the Ministry of Civil Affairs, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the General Administration of Quality Supervision, Inspection and Quarantine jointly issued the Notice on Launching the National Comprehensive Pilot Program for the Rehabilitation Assistive Devices Industry.
The third batch of rehabilitation assistive device rental pilots is steadily advancing.Pilot programs for the rental of rehabilitation assistive devices were launched in Pudong New Area and Baoshan District, with fixed rental outlets and mobile service vehicles established to provide rental services for the elderly and people with disabilities. By the end of 2018, the Ministry of Civil Affairs, the National Development and Reform Commission, the Ministry of Finance, and the China Disabled Persons’ Federation issued guidelines on launching pilot programs for rehabilitation assistive devices. Cities across the country applied to participate, and Changzhou City in Jiangsu Province, Jiaxing City in Zhejiang Province, and Anqing City in Anhui Province were designated as national pilot areas for community-based services for rehabilitation assistive devices.
The development trend of the fourth industry is gradually becoming apparent.Establish two suburban industrial parks, two year-round demonstration centers, and a manufacturing base in the Yangtze River Delta. The “2+2” layout has now been completed. The first rehabilitation equipment industrial park in West Hongqiao, Qingpu District, was completed on October 9, 2018, hosting 43 enterprises with cumulative revenue of RMB 470 million and tax contributions of RMB 22.47 million. The second rehabilitation equipment industrial park in South Binjiang, Minhang District, was completed on June 6. Next year, we will prioritize advancing development in the Yangtze River Delta by leveraging collaboration between the two national-level comprehensive pilot zones for the rehabilitation assistive device industry and other industrial parks, to facilitate the implementation of new technologies in the manufacturing of rehabilitation assistive products and in intellectual property protection.
The endogenous momentum of the fifth industry continues to strengthen.First, the market continues to expand, with 52 new member units added since 2016, representing a 144% increase. Second, various platforms are growing stronger. At the China International Elderly Care Assistance and Rehabilitation Medical Expo, dedicated exhibition areas for rehabilitation assistive devices and an assistive device rental zone have been established to showcase the latest assistive technologies. Within the National Exhibition and Convention Center’s “6+365” year-round exhibition hall, there is a 500-square-meter application scenario exhibition pavilion. This area demonstrates how rehabilitation assistive devices are integrated into homes, communities, and institutions. We warmly welcome visitors to explore this section and provide valuable feedback. Additionally, an experience center for innovative rehabilitation assistive products has been set up in Jing’an District in the city center, making it convenient for residents to learn about and try out various new types of rehabilitation assistive devices.
Second, we must collaboratively promote the innovative development of rehabilitation assistive devices.In accordance with General Secretary Xi’s requirements, we will leverage our leading role to drive industry development and advance toward higher-quality growth.
In terms of building an industrial collaborative innovation system, with the aim of enhancing the overall level of the rehabilitation assistive device industry in the Yangtze River Delta, establish and improve regional collaborative and consultative working mechanisms for the rehabilitation assistive industry, build a regional innovation community, integrate regional innovation resources, and strengthen collaborative innovation.
In Promoting Division of Labor and Cooperation Among Cities, further expand advantages, actively eliminate various administrative barriers that hinder the flow of factors, and strengthen institutional innovation for coordinated cross-regional development. Enhance industrial division of labor and collaboration, promote rational industrial layout, facilitate deep integration of innovation chains and industrial chains, jointly build clusters of rehabilitation assistance industries, and drive the Yangtze River Delta’s rehabilitation assistance sector toward higher-quality and more integrated development.
In Promoting the Flow of Factors in Industrial ParksStrengthen the development of rehabilitation assistive industry clusters among pilot cities in the Yangtze River Delta. Leveraging the region’s advantages in industrial talent and capital, accelerate the transformation and upgrading of traditional manufacturing enterprises to jointly establish a number of demonstration-level rehabilitation assistive device industrial parks and production bases. Build internationally advanced R&D centers and headquarters bases to foster a rehabilitation assistive device industry characterized by strong regional distinctiveness, high value-added, and low resource consumption.
In establishing standards for products and services,Promote the clustering of rehabilitation assistive products, formulate and improve service standards, establish a sound standard system for rehabilitation assistive devices and services, fully leverage the normative and guiding role of standards in the market, capitalize on regional advantages, develop categorized product and service standards, and facilitate the adoption of provincial and municipal local standards as unified standards across the Yangtze River Delta region.
In strengthening intellectual property protection,Jointly study the intellectual property protection system for the rehabilitation assistive device industry in the Yangtze River Delta region, safeguard the innovative development of various market entities, promote the implementation of intellectual property protection for the rehabilitation assistive device industry in the Yangtze River Delta region, and foster more innovative industries with independent intellectual property rights and core competitiveness.
Finally, Director Zhu Qinhao stated that the civil affairs departments of the three provinces and one municipality in the Yangtze River Delta will accelerate the development of the rehabilitation assistive device industry. By leveraging industrial growth to enhance urban tiers and core competitiveness, they aim to achieve the goal of healthy, integrated development in the Yangtze River Delta region. Through win-win cooperation across a broader scope, wider fields, and deeper levels, they will jointly build a compassionate rehabilitation assistive device industry in the Yangtze River Delta, always keeping the people’s health and better lives as their ultimate goal.