‘Capital Winter’ Chills Investment in China’s Health Care Industry

China’s cutting-edge drug developers are feeling the pinch from a continued contraction in investment, with some having to make massive layoffs or abandon non-core businesses to survive what has been dubbed a “capital winter.”

After peaking at $34 billion in 2021, private funding for China’s health care industry more than halved to $15.6 billion last year and continued to fall to $5.7 billion in the first half of 2023, according to a recent report by medical service provider VBData and its affiliate VCBeat Research.