Policy Support as a 'Midwife' for Unicorn-Style Medical Innovation: A Proposal by CPPCC Member Li Zhaoshen

VCBeat (WeChat ID: vcbeat) has learned that on March 2, Li Zhaoshen, a member of the National Committee of the Chinese People's Political Consultative Conference, submitted three proposals in total, including measures to foster innovation among China’s unicorn companies and promote the development of technology-driven enterprises in the healthcare sector.

In addition to being a member of the National Committee of the Chinese People's Political Consultative Conference, Li Zhaoshen holds several other titles: Academician of the Chinese Academy of Engineering, President of the Endoscopy Society of the Chinese Medical Doctor Association, and Director of the Department of Gastroenterology at Changhai Hospital Affiliated to Naval Medical University. For over a year, Li Zhaoshen, who has long been dedicated to the prevention and treatment of gastrointestinal tumors in China, has been actively working to promote the widespread adoption of capsule endoscopy for gastrointestinal examinations.

“Gastrointestinal tumors account for nearly 50% of all cancer cases in China. Of these, approximately 85% are diagnosed at an advanced stage. Why are there so many advanced-stage cases? Because the early diagnosis rate for gastrointestinal tumors is very low in China,” said Li Zhaoshen. He believes that only by establishing effective screening guidelines for gastrointestinal tumors at an early stage, developing appropriate technologies, and promoting their implementation as soon as possible can China reduce the number of advanced-stage gastrointestinal tumor cases.

Among the appropriate technologies for early screening of gastrointestinal tumors endorsed by Li Zhaoshen, one is indigenous technological innovation—Magnetic-Controlled Capsule GastroscopyCompared with traditional tube-based electronic gastroscopes, capsule endoscopy for the digestive tract is comfortable throughout the entire procedure, safe, and highly efficient.In China and globally, Anhan Medical in Shanghai is the only “unicorn” company capable of independently developing magnetically controlled capsule gastroscopy systems.

“Would you like us to perform the endoscopy free of charge? Or shall I arrange a car to pick you up and bring you to the hospital for the procedure?” Li Zhaoshen once attempted to persuade a patient at high risk for gastrointestinal tumors to undergo gastrointestinal endoscopic screening, but was repeatedly refused. The patient expressed bewilderment at the gastroenterologist’s recommendation: “I don’t have any discomfort; why should I subject myself to the ordeal of intubation?”

Unable to persuade the patient to embrace the health concept of “early screening, early diagnosis, and early treatment,” Li Zhaoshen had no choice but to offer a promise: a subsidy of 50 yuan for undergoing early screening. Only then did he manage to “attract” the patient to come to the hospital for the examination.

“How can such people possibly detect cancer in its early stages? Early-stage gastrointestinal cancers are typically asymptomatic.” Faced with the patient’s lack of awareness, Li Zhaoshen was deeply concerned.

“Esophageal cancer, gastric cancer, and colorectal cancer collectively constitute the leading cause of health-related mortality among the Chinese population. It is imperative to vigorously promote public education on the importance of early screening for gastrointestinal tumors, establish an expert committee dedicated to science communication on gastrointestinal malignancies, develop specialized public education frameworks, and devise strategies to ensure universal awareness of the critical role of screening.”

Li Zhaoshen believes that,Gastrointestinal Cancer Screening Should Be Elevated to a “National Program”In Japan and South Korea, the proportion of early-stage gastrointestinal tumor diagnoses has already exceeded 70%, whereas in China it remains below 10%, representing a substantial gap. What has greatly bolstered confidence in Li Zhaoshen’s “National Program for Early Screening of Gastrointestinal Cancers” is the emergence in China of a magnetically controlled capsule gastroscopy system specifically designed to enhance the diagnostic and initial screening capabilities for gastrointestinal diseases, particularly to improve the early detection rate of gastric cancer.

Capsule endoscopy demonstrates diagnostic accuracy for focal gastric lesions comparable to that of conventional electronic gastroscopy, while offering significantly greater patient comfort—subjects need only swallow a single capsule, with the examination completed in approximately 15 minutes.

This system is from AnHan. It is reported that the capsule endoscopy robot developed by AnHan is not only the only one in China but also the only one globally, with its high-precision magnetic field control technology significantly leading international standards. It is precisely because of this unique technological advantage that AnHan has grown into a "unicorn" company within nine years.

“Hanging a Mirror to Save the World” is the accolade bestowed upon Li Zhaoshen in China’s digestive endoscopy field. As an expert with profound professional expertise in endoscopy, Li Zhaoshen, with remarkable foresight, began collaborating with Anhan a decade ago to develop capsule gastroscopy technology, at a time when many considered the “capsule gastroscopy robot” to be nothing but a pipe dream.

It is reported that after nine years of market competition,Anhan’s Capsule Gastroscopy Robot, leveraging its advantages in comfort, accuracy, and safety, has become the only capsule gastroscopy robot in China to hold a Class III Medical Device Registration Certificate issued by the CFDA. It is currently being used clinically in nearly 1,000 medical institutions across the country.

Li Zhaoshen told reporters that technological innovation in the gastrointestinal field is highly challenging, and the Chinese market has long been monopolized by Japanese brands. Traditional electronic gastroscopy technology has been primarily controlled by a few companies, such as Japan’s Olympus, Pentax, and Fujifilm. Now, Anhan’s capsule endoscopy represents a major original breakthrough for China in the gastrointestinal field, breaking the foreign monopoly in the endoscopy industry.

However, the screening capacity of these 1,000 facilities remains exceedingly limited compared to the annual demand of 120 million gastroscopies in China. Moreover, reporters have learned that capsule endoscopy is currently included in the medical insurance reimbursement scheme only in Shanghai.

Previously, renowned Chinese economist Wu Jinglian had expressed strong concern about the widespread adoption of capsule endoscopy at an economic forum, believing thatChina’s leading industrial projects featuring original, major breakthroughs should be granted national treatment and included in the National Reimbursement Drug List.

The driving role of medical insurance is evident: statistical data show that after capsule endoscopy was included in Shanghai’s medical insurance coverage, 4,688 residents underwent capsule gastroscopy within six months. Among them, 1,152 cases (24.6%) were found to have typical lesions, with an ulcer rate of 7.62% and a cancer detection rate of 0.13%. These individuals fortunately achieved “early diagnosis and early treatment.”

If appropriate policies are implemented to raise China’s early gastric cancer detection rate to the average levels of Japan and South Korea, the country would see an annual reduction of at least 250,000 cases of advanced gastric cancer. This would translate to an annual savings of RMB 15 billion in out-of-pocket expenses for households nationwide and at least RMB 30 billion in national healthcare expenditures. These figures warrant serious attention.

China vigorously encourages technological innovation in medical devices, leading to rapid industry growth and a continuous emergence of new technologies. The updating and alignment of relevant policies play the role of a “midwife,” which must strongly facilitate the swift implementation of scientific and technological innovations; otherwise, the enthusiasm for such innovation will be dampened.

For instance, the emergence of disruptive innovative technologies has led to globally exclusive products. However, current procurement processes in medical institutions require three rounds of bidding and failed bids, followed by competitive negotiations, which are time-consuming, labor-intensive, and costly. This hinders the promotion and application of domestically produced products with independent intellectual property rights. Such a bidding system is no longer suitable for single-source products.

“We now have exciting, high-quality domestic products with technologies that can rival, keep pace with, and even lead international brands. We need to take a forward-looking view based on the development prospects of the new economy, new business formats, and new models, and we require relevant regulations and policies to support these innovative products and technologies. If domestic brands cannot even secure a share in the Chinese market, how can they hope to capture the international market? We should support medical technology innovation just as we have supported high-speed rail,” stated Li Zhaoshen. He noted that domestically produced medical equipment, driven by artificial intelligence, big data, and new technologies, has matured sufficiently to expand from specialized traditional hospital markets toward community-based and home-care settings.

With the development and widespread adoption of internet technology, efforts to promote early screening methods such as capsule endoscopy could adopt an operational model similar to the deployment of ATM machines in the banking system. Li Zhaoshen cited, for example, the establishment of third-party image acquisition centers for magnetically controlled capsule gastroscopy. These image centers would independently apply for operational qualifications, separate from the approval of business licenses for the company’s future nationwide offices (analogous to bank branches or sub-branches).

He believes that this model helps expand the coverage of image-centric services from individual points to broader areas, and through big data collection and analysis via the expert cloud-based film reading platform, better meets the public’s demand for gastrointestinal examinations in China, thereby addressing the severe shortage of medical personnel and equipment.

For this new business model, it is even more critical to coordinate resources at the national level to promote industrial development and serve as a “midwife” for innovative unicorn enterprises.