According to the export office http://export.gov managed by the Department of Commerce’s International Trade Administration www.trade.gov, China’s medical device market is ranked second largest in the world. This fact is driven by an increase in discretionary income and a population that is aging faster than any other nation’s population. The market growing at about 20 percent since 2009, is expected to maintain this pace over the next three to five years.
By 2020, China will have 400 million people over 60 and 100 million older than 80, plus the fact that China’s middle class is growing and health insurance now covers more people. Also, China’s medical device market is dominated by domestic suppliers, but many lack the expertise needed to supply the market.
China has over 16,000 hospitals, 85 percent are publicly owned. It has been noted, that imported products are better accepted by Chinese hospitals and the Chinese view foreign medical device companies as more credible than their Chinese counterparts. In addition, there is healthcare reform ongoing in public hospitals.
A few Chinese medical device companies are upgrading to provide some mid-to-high range technology and products, but the high tech large medical equipment market is dominated by foreign suppliers such as GE, Philips, Siemens, and others.
Some of the best-selling prospects are:
- In vitro diagnostic equipment and reagents
- Implantable and intervention materials and artificial organs
- Therapeutic products
- Medical diagnostic and imaging equipment
- Surgery and emergency appliances
- Health information technology related equipment and products.
- Medical equipment parts and accessories
Current government policy supports and encourages medical device innovation inside of China. Some domestic manufacturers such as Shenzhen Mindray and Shandong Shinva plus other companies create high quality products and are beginning to compete against foreign suppliers in medium to high level technology niches.
A regulation requires all imported medical devices and products to be registered with the China’s Food and Drug Administration before being sold or distributed in the Chinese market. Generally, the process is complex and time consuming. U.S companies are encouraged to register their products through their authorized distributors if they do not have a representative office or subsidiary in China.
Other barriers include onerous pricing and reimbursement policies on pharmaceuticals and medical devices, inadequate intellectual property protection, and bureaucratic delays in registering products for sale. Numerous restrictions and an ever changing regulatory environment adds to the challenges.
Go to http://export.gov/industry/health/healthcareresourceguide/china084176.asp for more information.