A pivotal development occurred in March 2024 when the National Health Commission issued the "Guidelines for Clinical Application Management of Medical Large Models." This document, dubbed the "Constitution of Medical AI" by the industry, is reshaping the sector's landscape. It clearly delineates a "four-quadrant" development path: prohibiting AI from replacing diagnosis, encouraging process optimisation, prioritising chronic disease management, and strictly controlling ethical risks.
Further solidifying the role of AI in healthcare, in April 2024, the "Guidelines on Pricing for AI-Assisted Medical Services" were released, establishing pricing standards for 18 AI-assisted services, including AI-aided diagnosis and intelligent follow-ups. This marks the official entry of medical AI into the medical insurance payment system, elevating it from a "technological toy" to a "medical productivity tool”.
In January 2025, Shanghai took a significant step by establishing the Shanghai Medical Large Model Application Testing and Verification Centre. This centre, the first of its kind in China, is designed to evaluate and validate medical large model applications, addressing critical issues such as accuracy, interpretability, data privacy, and medical ethics. Led by the Shanghai Artificial Intelligence Laboratory, with 12 hospitals as initial validation units, the centre aims to provide comprehensive, full-chain management of medical large models. It conducts rigorous evaluations covering qualification verification, basic model review, safety checks, medical scenario assessment, ethical review, and application tracking.
Key Developments in China's Medical AI
- Data and Implementation Challenges
Despite the development of massive AI models trained on over 5 billion data points, only 3% comes from high-quality hospital data. This underscores the ongoing challenge of prioritising data quality over quantity in healthcare AI applications.
- Innovative Solutions
Several success stories demonstrate China's progress in practical AI implementation:
- Tencent's ICU smart alert system reduced false alarms by 68%, increasing time for patient care.
- Alibaba Health's diabetes management system integrates multiple data sources, improving patient compliance by 41%.
- AI-powered remote diagnosis systems in rural areas have reduced misdiagnosis rates by 63%.
- Strategic Focus Areas
China is prioritising AI development in specific healthcare domains:
- Medical imaging, particularly for cancer, cardiac, stroke, and fracture detection.
- Neurological disorder detection, including early Alzheimer's diagnosis and ADHD screening.
Hospital management and telemedicine to address doctor shortages and aging population challenges.
- Government Initiatives and Funding
The Chinese government plays a crucial role in shaping the medical AI landscape:
- The Healthy China 2030 Initiative and National AI Strategy drive AI adoption in healthcare.
- Beijing and Shanghai lead in AI sector market share, with 19.3% and 14.6% respectively.
The Five-Year Plan (2021-2025) prioritises R&D in medical imaging AI and personalised medicine.
- Regulatory Framework
China has implemented regulations to govern data security and privacy:
- The Personal Information Protection Law (PIPL) sets guidelines for personal health data use.
- Strict regulations on biodata collection prohibit domestic datasets from being used abroad.
The future outlook for China's medical AI sector is promising. The Shanghai Medical Artificial Intelligence Development Plan (2025-2027) aims to accelerate AI innovation in drug development, clinical decision support, and intelligent surgery. The AI sector in China is projected to grow from US$34.2 billion in 2024 to US$154.8 billion by 2030
Food for Thought
As the UK healthcare sector considers its own AI strategy, China's experience offers several points for reflection:
- The importance of balancing technological advancement with ethical considerations and human-centred care.
- The potential of AI in addressing healthcare disparities, particularly in underserved areas.
- The role of government in fostering AI innovation while ensuring data privacy and security.
- The value of focusing on specific, high-impact use cases rather than general-purpose AI solutions.
China's journey in medical AI presents both challenges and opportunities, offering valuable insights as the UK healthcare sector considers its own AI strategy. As the global healthcare community continues to explore AI's potential, cross-cultural exchange and learning will be crucial in shaping the future of healthcare delivery worldwide. Excellence First Enterprise Consultancy (EFEC) stands ready to facilitate this process, leveraging its extensive experience in building win-win partnerships between UK and China to support innovation and collaboration in the medical AI sector.
