Government News
Two Sessions: biopharma again core pillar of Shanghai's industrial strategy 2026-02-04
At the 2026 Shanghai Two Sessions, the biopharmaceutical sector, especially medical devices, was once again positioned as the core pillar of the city's industrial strategy, reflecting Shanghai's ambition to anchor itself higher up the global healthcare value chain.Policymakers and industry representatives framed the sector not simply as a growth engine, but as a long-cycle, high-value industry that aligns closely with the city's manufacturing capabilities, talent density and international orientation.
A recurring theme in the discussions was structural upgrading. While parts of China's biopharma industry are facing short-term pressure – from pricing reforms, procurement policies, and capacity expansion over the past decade – delegates emphasized that these challenges are accelerating a long-anticipated reshuffle. Policy direction is increasingly tilted toward encouraging innovation-driven players, higher technical barriers and differentiated products, rather than volume-based expansion.
Medical devices, in particular, were highlighted as a segment where Shanghai sees both comparative advantage and strategic opportunity. High-end devices and diagnostics combine advanced manufacturing, regulatory sophistication, and clinical integration – areas where Shanghai already has relatively mature infrastructure.
Local policymakers stressed the importance of end-to-end ecosystem building, spanning research and development (R&D), clinical trials, regulatory approval, manufacturing and global market access, rather than fragmented policy support.
Internationalization also featured prominently in the policy narrative. As Chinese biopharma companies accumulate technical capabilities and regulatory experience, "going global" is increasingly seen not only as a revenue expansion strategy, but also as a way to absorb domestic capacity and benchmark against global standards.
This outward push, however, is framed as being rooted in innovation, long-term R&D accumulation, and regulatory credibility, rather than short-term arbitrage.
Talent remains a double-edged issue. Shanghai continues to benefit from its concentration of universities, research institutes and skilled professionals across the Yangtze River Delta region. At the same time, rising costs and intensifying inter-city competition have brought renewed attention to policy tools that can help companies manage long-term operating pressures while remaining globally competitive.
Overall, the 2026 Two Sessions signaled a clear policy stance: Shanghai's biopharma and medical device ambitions are no longer about scale alone, but about quality, resilience and global relevance. In a sector defined by long development cycles and high uncertainty, policymakers appear increasingly focused on creating conditions that allow time, innovation and execution to compound – rather than chasing rapid but fragile growth.
"Medical devices are a core part of the biopharmaceutical industry. Their high value-added nature fits well with Shanghai's urban characteristics. What matters most now is turning well-designed policies into real execution – bringing together competitive and innovative companies, strengthening local players, attracting projects from other regions, and ultimately expanding Shanghai's biopharma ecosystem by turning pressure into opportunity," said Shanghai CPPCC member Shao Junbin, founder and chairman of Shanghai Liferiver Bio-Tech.
Source: City News Service
