GlobalAutoTV
Click to watch John McGill -
Click to watch John McGill -
china resources


Need an office in China? Office suites, meeting rooms, virtual offices, network access



free downloads
CHINA: "Hong Kong Tax News Flash (June 2016)" alert

CHINA: "Hong Kong Tax News Flash (June 2016)" alert. 4-page Alert by PwC Hong Kong.

proceed to download
eJournals






back to index backCHINAtalk May,  2017


“Two Invoice System”

Survive through Change and Develop through Exploration.

The report

On January 11, 2017, the State Council Healthcare Reform Office, the National Health and Family Planning Commission of the People’s Republic of China, the FDA as well as another six ministries and commissions issued the so-called GYGBF [2016] No.4, the Notice on the Distribution of the Opinions on the Implementation of the “Two-invoice System” in Drug Procurement by Public Medical Institutions (for Trial Implementation). The purpose has been to establish detailed implementing rules for the policy according to local conditions and to create quick reports to the Medical Reform Office of the State Council.

As a professional third-party institution, Deloitte – with its long-lasting track record in providing expert advisory services in risk, strategy and tax to customers from the Life Sciences and Healthcare industry – uses its leading methodology to offer customers a detailed analysis of the new policy. The purpose of this article is to show the background of the new policy, features of industries affected and measures to encounter these changes.

Viewpoints / key findings

With the accelerating growth of the demand in the China medical and pharmaceutical market and the basic medical insurance system's continuous progression, China's healthcare expenditure is encountering fast expanding pressure. China's healthcare industrial policy is gradually transferring its orientation to lead the industry to grow reasonably and control healthcare expenditures. Besides utilizing the centralized procurement and medical insurance expense control mechanisms to control medicine prices, the government is also making efforts to implement the "Two-invoice System" in the distribution channels in order to reduce the length of the supply chain thus medicine prices.

Deloitte believes that the "Two-invoice System" will impact all segments in the healthcare industry value chain, to various extends. It can be expected that all levels of governments will make full efforts to implement the "Two-invoice System", and strengthen the monitoring over the market in order to meet the two-invoice system's requirements in the short-term. Companies which cannot meet the two-invoice system's requirements will be squeezed out from the market. Therefore, companies need to improve their internal operation quality, with deep understanding of the companies themselves as well as the policies' substance, in order to cope with this change.

Specifically, the report examines in following aspects:

• Policy Background: Policy History, Recent Provincial Development

• Impact Analysis : Pharmaceutical Industry, Medical Instruments, Formula Food for Special Medical Use

• Suggested Strategies: Internal Operations Diagnostics, Update the Distribution Management Model, Optimization of Internal Tax Planning and Financial Strategy

To download 8-page report, please click here.

Source: Deloitte China - GAI



previous page

go top
search our site


Loading

CHINAtalk

Other articles from the same issue (May,  2017).

Automakers answer govt call to expand
play read on

China to allow majority foreign ownership for car ventures
play read on

China's annual output of automobiles expected to break 50m
play read on

China bares plan to be top global automaker by 2027
play read on

Chinese Car-Sharing is Blossoming
play read on

China’s auto industry should independently develop technologies
play read on

Consumer Insights on New Energy Vehicles in China
play read on

Tax incentives and future development trends of the New Energy Vehicle industry
play read on

A Robot Revolution, This Time in China
play read on

CFOs are turning positive and prioritize business expansion in 2017
play read on

Quality of Leadership Matters Most to Senior Talent in China, Finds Latest Employer Branding Survey
play read on

Making Sense of China’s 2017 Economic Growth Target
play read on

What to expect from Made in China 2025 and China's first Belt and Road Forum
play read on

Prospects for future economic cooperation between China and Belt & Road countries
play read on

China's rising leverage is a growing risk
play read on

It’s Time for the U.S. to Revoke China’s Free Pass on Trade
play read on

China Contract Templates: the Cons and the Cons
play read on

More Than 25 Employees: Do I Need To Establish A Trade Union?
play read on

One Belt One Road in 2017: Continuing the Momentum
play read on

China Cyber News Alert
play read on

Work Permit Changes to Attract Foreign Talent
play read on

“Two Invoice System”
play read on

Draft Amendment to the Anti-Unfair Competition Law Pending Final Review
play read on

China: IFRS 16 – Lease definition
play read on

Where Manufacturing Activity Stands in China
play read on

Belt and Road online database released in Shanghai
play read on

A New Dawn for the International Tax System: Evolution from past to future and what role will China play?
play read on

How fintech disrupts supply chain finance in China
play read on

China-ASEAN trade to hit $1t by 2020
play read on

China's emergence as a key patent litigation hub poses challenges for its companies
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120