China National Pharmaceutical Group Corp (Sinopharm), the State-owned healthcare group, signed an agreement with Elekta, the Swedish medical equipment producer, to establish a joint venture to manufacture radiotherapy equipment in China.

They said the joint venture will help increase the adoption of radiation therapy in China's lower-tier cities, where around 70 percent of the population resides. They will announce the location for this joint venture in the coming months.

Addressing a signing ceremony in Beijing last week, Liu Jingzhen, board chairman of Sinopharm, said this move is a practical measure for Sinopharm to develop the Healthy China 2030 strategy and respond to the government's call to create a world-class enterprise.

It has symbolic significance in introducing global high-end medical equipment and improving China's level of intelligent radiotherapy, Liu added.

Sinopharm covers all aspects of healthcare, not only pharmaceuticals, but also research and development, manufacturing, logistics and distribution.

Through the joint venture agreement, Elekta will improve access to over 1,000 medical institutions in small cities within Sinopharm's service network, according to Gustaf Salford, Elekta's CEO.

The collaboration with Sinopharm will help ensure that people in China will have access to the same high-quality precision radiation therapy, regardless of where they live, said Gong Anming, Elekta's executive vice-president.