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Chinese Internet Firms Unable to Address Obstacles in Mobile Health Business

| Jul 25, 2015 07:06 AM EDT

Industry experts said that China's mobile health sector is expected to boom in the coming years.

Chinese Internet companies interested to invest in the health sector have failed to address several challenges related to mobile applications for medical services, Sina's technology blog said.

According to Sina, the mobile health business has great potential for mobile service operators, medical equipment manufacturers, chip makers and software developers, amid Apple's launching in March of its apps that monitor and test people's vital signs, including ResearchKit, an open-source software platform for medical applications.

Sina noted that China's top three Internet companies--search engine Baidu, e-commerce operator Alibaba and Web portal Tencent--have made a series of investments into the health sector as part of expansion activities.

Baidu launched a health site in 2013 as well as an online medical consultation service in late 2014. The company also introduced a mobile phone app for online consultation service.

In February, Baidu also invested in Yihu, a website that allows users to make doctor's appointments online, as well as in an online platform in April that enables users to buy medicine online from pharmacy stores.

On the other hand, Alibaba has positioned itself in the health sector through Alipay, its payment service, and invested in several online health care services, such as Citic 21CN, renamed as Ali Health in Jan. 2014.

Sina said that Ali Health set up an electronic drug prescription system at the Military General Hospital of Beijing in January and is currently testing the system at hospitals in Hebei Province and Hangzhou.

Tencent has tapped WeChat, its instant messaging app, for its expansion into the health business, connecting doctors and patients and also providing a blood sugar monitor.

Sina added that the Internet companies' interest in the health sector was further boosted by government policies, such as the "Internet Plus" initiative unveiled by Chinese Premier Li Keqiang in March during the annual meeting of the National People's Congress, with the aim to enhance the country's industries through Internet technology.

However, there are still several challenges that companies need to address, such as the possible errors in remote consultation, relevant regulations and liability in medical disputes.

Sina further noted that firms were unable to establish a profitable business model, pointing to the existing ban on the online sale of prescription drugs as a major obstacle to build a full industry chain.

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