Core Insights - The article highlights the evolution of China's health industry policies, transitioning from basic medical security to a focus on comprehensive health management throughout the life cycle, emphasizing preventive care and integrated health services [1][2]. Policy Development - Recent national policies have prioritized innovation in health products and service models, such as the "China Food and Nutrition Development Outline (2025-2030)", which promotes nutrition-oriented agriculture and encourages the development of functional foods and specialized medical formula foods [2]. - Local governments are also supporting the biopharmaceutical industry with financial incentives for innovative drug and medical device development, including subsidies up to 5 million yuan based on actual investment [2]. Regulatory and Compliance Risks - The rise of the "health economy" has led to stricter regulatory and compliance requirements, with a comprehensive management framework established for food, health products, and drug-food homologous products, focusing on production access, labeling, advertising, and market supervision [3][4]. - Companies face compliance risks related to overstated functional claims, improper use of raw materials, and misleading advertising, particularly in the context of "drug-food homologous" products infiltrating various consumer markets [4]. Market Impact - Stricter regulations are affecting market entry barriers and operational models, with a trend towards standardized market supervision making the compliance environment more transparent yet rigid [5]. - Companies are increasingly building cross-departmental compliance management systems to ensure compliance throughout the product lifecycle, aided by digital tools for real-time policy tracking [5][6]. Future Directions - To navigate the complex regulatory landscape, companies need to establish dynamic compliance management systems and policy response mechanisms, including dedicated compliance roles and regular employee training [6]. - The development of regulatory technology (RegTech) is expected to help companies balance innovation and compliance more effectively in the future [6].

Group 1 - The core finding of the report indicates that 71% of surveyed American companies in China expect to be profitable in 2024, an increase from 66% in 2023, reflecting an improvement in the business environment [1] - 48% of respondents believe that the regulatory environment in China is transparent, a significant increase of 13 percentage points from the previous year [1] - 41% of companies express confidence in further market opening in China, showing a notable rise compared to last year [1] Group 2 - The report highlights that 64% of surveyed American companies anticipate a decline in revenue due to the tariff war, with 48% calling for the cancellation of all tariffs and non-tariff barriers against China [1] - The U.S. Trade Representative's office extended the tariff exemption for 178 products from China until November 29, 2025, amidst ongoing legal disputes regarding tariffs [3] - The president of the Shanghai American Chamber of Commerce emphasizes the importance of reducing uncertainty for businesses and advocates for cooperation in international trade [3] Group 3 - The report identifies "local competition" as the second-largest challenge for American companies in China, following bilateral relations, indicating the growing strength of Chinese enterprises [5] - 41% of surveyed American companies believe that Chinese firms are more advanced in the application of artificial intelligence (AI), particularly in retail and consumer goods [5] - In the automotive sector, over half of the respondents view Chinese companies as competitive in AI technology, with a focus on autonomous driving and AI-driven supply chain optimization [5] Group 4 - The president of the Shanghai American Chamber of Commerce notes that normal competition is reasonable and appreciates the Chinese government's efforts to address issues of irrational competition [6] - He highlights the need for international agreements and governance rules in the field of AI to address potential challenges [6] - The three areas where China and the U.S. must collaborate include AI governance, climate change, and public health [6] Group 5 - The Shanghai American Chamber of Commerce plans to participate in the upcoming China International Import Expo, focusing on agriculture, with an expanded exhibition area compared to last year [7] - Last year, American companies achieved $711 million in cooperation intentions at the expo, a 41% increase from the previous year, and aim to surpass this record [7] - The chamber believes that participation in the expo is significant for fostering U.S.-China relations, despite existing challenges such as tariffs and government spending cuts [7]