Perennial Holdings is the Singapore operator of China's first wholly foreign-owned tertiary general hospital, which opened earlier this year and is seeking more medical tourists. It aims to derive 30 percent of its revenue during its first year of operation from patients visiting from Russia to the Middle East and Southeast Asia - betting on China's rise as an emerging destination for medical tourism that can compete with established regional rivals Singapore, Thailand and Japan, The Straits Times reported on Thursday.

This case represents more than a standalone business venture - it reflects the growing momentum in China's inbound medical tourism sector. As the country continues to introduce favorable policies such as "240-hour visa-free transit" and enhance its cross-border service capabilities, medical tourism is poised to become a new growth engine of China's expanding trade in services.

The foundations for this growth are becoming increasingly robust. In recent years, China has designated international medical tourism as an important emerging sector, with notable progress across the country's healthcare system. 

In September 2024, China launched pilot programs to further open up the medical sector. At the same time, top-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen are upgrading their healthcare infrastructure as part of broader efforts to attract international medical tourists. In April, Shenzhen announced a new initiative to designate 10 hospitals as pilot facilities with standardized international services, aiming to foster the growth of its medical tourism sector.

China's medical tourism push has already garnered positive responses, with growing interest from both international patients and foreign healthcare investors. For instance, the Boao Lecheng International Medical Tourism Pilot Zone in South China's Hainan Province welcomed an international medical tourism group from Indonesia in December 2024 with per capita spending exceeding 12,000 yuan ($1,672), the Xinhua News Agency reported. 

Although China's medical tourism industry remains at an early stage compared with some other countries, China's ability to compete in medical tourism is underpinned by several advantages. First, its healthcare services are more cost-effective than those in many Western countries. This affordability, combined with improving quality, is drawing increasing attention from patients in nearby regions.

Second, China possesses a unique competitive edge in traditional Chinese medicine (TCM). As global interest in integrative and alternative medicine rises, TCM offers a differentiated medical method and proposition that is hard to replicate elsewhere. Treatments combining modern diagnostics with centuries-old herbal and therapeutic traditions are appealing to wellness-oriented international clients.

Third, China's rapid technological advancements in the medical service sector are elevating the quality of care to standards comparable with leading international institutions. Additionally, the integration of digital technologies - ranging from telemedicine to intelligent healthcare - has significantly boosted service efficiency. This technological edge is positioning China as an increasingly influential player in the global healthcare landscape.

The global medical tourism market is projected to see significant growth in the coming years, according to estimates of industry institutions. Amid this trajectory, the outlook for China's medical tourism sector is promising. As the country continues to expand its services trade and open its markets, the rise of healthcare tourism will be a natural result. Initiatives like Perennial Holdings' new medical institution reflect rising international confidence in China's healthcare environment.

To move from a promising up-and-comer to a true leader in global medical tourism, however, China needs to sharpen its competitive edge - leveraging unique strengths such as the integration of TCM with advanced technologies - while ensuring consistent policy implementation across regions. With attracting more foreign investment and strong policy momentum, China is well-positioned to elevate medical tourism from an emerging niche into a key pillar of its modern services economy.