Shandong Expands China-Japan Local Economic Cooperation: Baiair and Itochu Elevate Strategic Partnership

To accelerate the transition from old to new growth drivers in Shandong Province and implement the “dual recruitment and dual introduction” initiative, Shandong Governor Gong Zheng led a delegation to Japan for an official visit focused on advancing China-Japan economic and trade activities. VCBeat (WeChat ID: vcbeat) has learned that during the “Qingdao Business Week” economic and trade event on March 27, Itochu Corporation, Japan’s largest general trading company, signed a new strategic cooperation agreement with Baheal Medical, a technology-intensive service provider in China. The two parties will deepen their collaboration in the fields of pharmaceuticals, medical aesthetics, artificial intelligence, and financial investment. Shandong Governor Gong Zheng, Secretary-General of the Shandong Provincial Government Shen Changyou, and Qingdao Executive Vice Mayor Xue Qingguo witnessed the signing ceremony.

As the world’s second- and third-largest economies, China and Japan have established a comprehensive, wide-ranging, and multi-tiered framework to jointly promote economic globalization and trade liberalization. Since 2018, with Sino-Japanese relations returning to the right track, bilateral willingness to enhance economic and trade cooperation has further increased: in the first half of the year, bilateral trade between China and Japan exceeded US$120 billion; China has become Japan’s largest trading partner, largest source of imports, and second-largest export market, while Japan has become China’s second-largest trading partner, second-largest export destination, and second-largest source of imports.

Qingdao is the only city with a “dual positioning” in China’s national Belt and Road Initiative strategy, serving as a key node on the New Eurasian Land Bridge Economic Corridor and a maritime cooperation hub. Its advantages in port-based multimodal transport and trade logistics channels have injected new vitality into innovative models of comprehensive local cooperation, establishing Qingdao as an important bridgehead for Sino-Japanese local economic and trade collaboration. Leveraging this geographic advantage, an increasing number of international cooperation projects are being launched in Qingdao.

As a leading enterprise in Qingdao’s healthcare sector, Baheal Medical Group has maintained deep and extensive cooperative relationships with Japanese healthcare companies in recent years. As a gateway for China’s health industry, Baheal is committed to introducing high-quality overseas healthcare products, cutting-edge technologies, and services into China. The upgraded collaboration with Itochu Corporation demonstrates significant depth and breadth in their partnership.

In May 2018, during the Seventh Trilateral Summit among China, Japan, and South Korea, Baheal Medical Group and Itochu Corporation established a partnership. To jointly explore the pharmaceutical and healthcare markets in China, Japan, and other overseas regions, the two parties have collaborated across six key areas: sales of health-related products including over-the-counter (OTC) drugs, functional cosmetics, and functional foods; manufacturing and sales of prescription drugs; personal healthcare; advanced technologies and new services; overseas (global) business operations; and joint investment ventures.

To expand the scope of cooperation and deepen the partnership, in accordance with the newly reached cooperation agreement, both parties will further broaden the range of pharmaceutical products in the field of pharmaceutical sales. Products in the areas of maternal and infant health, hepatology, oncology, cardiovascular diseases, and gastroenterology will be included in the priority negotiation scope. In the field of personal healthcare, both parties will explore and develop home medical devices for the management of cancer patients and those with chronic diseases. Additionally, in the realms of cutting-edge technology and new services, both parties will discuss the development of Healthcare Big Data businesses.

Furthermore, to concentrate investment and development in the healthcare sector and maximize the mutual benefits of their partnership, Baheal Medical and Itochu are exploring the establishment and operation of a joint holding company. This initiative aims to rapidly facilitate the comprehensive integration of resources from both parties and accelerate the implementation of collaborative projects.

Fu Gang, Chairman of Baheal Medical Group, stated, “As the quality of China’s economic development continues to improve and its opening-up accelerates, cooperation between China and Japan in the broader health sector will expand further, with the potential to become a significant growth driver in bilateral economic and trade relations. As a gateway connecting China with cutting-edge global healthcare resources, Baheal will forge high-quality partnerships with more leading global enterprises to advance the development of China’s health industry, ensuring that Chinese citizens have access to advanced technologies and premium products, while also bringing China’s innovative technologies and high-quality products to the global market.”