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Medical Device and Healthcare Service Market

Overview

China is now the world‘s second largest market for medical equipment. Based on the information from China Association for Medical Devices Industry (CAMDI), in recent years China‘s medical equipment market has been growing at 15 percent annually, and reached a total size of RMB 100 billion in 2010 (about US$156 million), ranking second in the world behind the United States. The domestic production volume of low to mid-range medical equipment and products ranked top in the world at 75 percent; high-end products only accounted for 25 percent, showing that the majority of medical equipment and products produced by domestic Chinese manufacturers are low-tech. Several foreign companies such as General Electric (GE), Philips, and Hitachi supply 80 percent of China‘s high-end medical equipment. Clinical laboratory equipment and reagent sales are growing at about 15 percent to 20 percent annually.

According to statistics from the China Chamber of Commerce for Import and Export of Medicines and Health Products (CCCMHPIE), by the end of 2010 China‘s import and export value of medical equipment reached $22.7 billion, an increase of 23.47 percent over 2009. For more detailed information, refer to the list below of top three countries and market share in the import and export of medical equipment to China in 2010.

Medical Device Import and Export Value in 2010 by Top 3 Countries (in billion dollars)

By Country

Import

Share

Export

Share

World

7.34

100%

13.86

100%

US

2.26

31%

3.87

28%

Germany

1.27

17%

0.78

6%

Japan

1.11

15%

1.44

10%

China‘s healthcare market is severely underdeveloped and offers significant potential for U.S. companies interested in expanding into the Chinese market. The Chinese Government has mandated $124 billion to develop basic healthcare infrastructure in hopes of providing basic healthcare coverage for all Chinese. China has over 20,000 hospitals, 85 percent of which are publicly-owned; the remaining 15 percent, approximately 2,000 hospitals, are private or China-foreign joint venture hospitals. Due to China‘s aging population, uneven location of medical resources, and chronic diseases, existing healthcare services cannot meet the huge demand of the current population. To narrow the gap between the huge demand for healthcare services and the shortage of public resources and hospitals, the government is encouraging social capital or investment into high-end or privately-owned hospitals to meet the gap of public hospitals in its 12th FYP. More privately-owned or foreign-invested hospitals are expected to be established in China. Growth of hospitals will encourage the development of the medical device market in China.

Chinese end-users consider U.S. products to be of superior quality and the most technologically advanced. China‘s hospitals particularly welcome medical equipment and products with high-technology content. At the same time, domestic medical device companies are consolidating, upgrading quality, and beginning to compete in medium-level technology niches.

Barriers exist with an uncertain regulatory environment and extensive delays in registration and re-registration of products, although efforts are reportedly being made to reduce the large backlog. Additionally, pricing, tender, and bar code systems also play a role of delaying a company‘s entry into the Chinese medical device market.

Best Prospects / Services

The Best-selling prospects in the healthcare sector include:

  • In vitro diagnostic equipment and reagents: Clinical and diagnostic analysis. equipment, diagnostic reagents, medical test and basic equipment instruments.
  • Implantable and intervention materials and artificial organs: Interventional materials, implantable artificial organs, contact artificial organs, stent, implantable materials, and artificial organ assisting equipment.
  • Therapeutic products: Tri-dimensional Ultrasonic focused therapeutic system, body rotary Gamma knife, simulator, linear accelerator, laser diagnostic and surgery equipment, nuclide treatment equipment, physical and rehabilitation equipment.
  • Medical diagnostic and imaging equipment: Black & white and colored supersonic diagnostic unit, sleeping monitor, digital X-ray system, MRI, CT, DR, and ultrasound equipment.
  • Surgery and emergency appliances: Anesthesia ventilation systems and components: high frequency surgery equipment, high frequency and voltage generators.
  • Healthcare Information Technology related equipment and products: Medical software, computer-aided diagnostic equipment, and hospital information systems (HIS, CIS, and HLT).
  • Medical equipment parts and accessories.
  • Health services: hospitals.

Trade Events

China Med 2012

The 24th International Medical Instruments & Equipment Exhibition

Dates: March 23-25, 2012

Venue: China National Convention Center, Beijing

Address: No.7 Tianchen East Road, Chaoyang District, Beijing, China

Website: http://www.chinamed.net.cn/en/Visitor.asp

China Medical Equipment Fair (67th CMEF Spring 2012)

Date: April 17-20, 2012

Venue: Shenzhen Convention & Exhibition Center

Shenzhen, China

Phone: (86 10) 8455-6603

Fax: (86 10) 8202-2922

Website: http://en.cmef.com.cn/

SINO-Dental 2012

Dates: June 9-12, 2012

Location: China National Convention Center (CNCC), Beijing

Add: No. 7 Tianchen East Road, Chaoyang District, Beijing, China

Website: www.chinamed.net.cn/en/Default.asp

MEDTEC China

Dates: September 26-27, 2012

Location: Shanghai-Intex, No. 88 Lou Shan Guan Road, Shanghai 200336, China Website: http://www.devicelink.com

U.S. Commercial Service Contact Information

Beijing

Ms. Shuyu Sun

Senior Commercial Specialist

The Commercial Service of the U.S. Embassy in Beijing

No. 55, An Jia Lou Road, Chaoyang District

Beijing 100600, China

Tel: (86 10) 8531-3946

Fax: (86 10) 8531-4343

Email: shuyu.sun@mail.doc.gov

Shanghai

Lynn Jiao

Senior Commercial Specialist

U.S. Consulate General Shanghai

1376 Nanjing West Road, Suite 631

Shanghai 200040, China

Tel: (86 21) 6279-8750

Fax: (86 21) 6279-7639

Email: lynn.Jiao@mail.doc.gov

Guangzhou

Shuquan (Sherman) Li, Senior Commercial Specialist

U.S. Consulate General, Guangzhou

14/F, China Hotel Office Tower

Liuhua Road, Guangzhou 510015, China

Tel: (86 20) 8667-4011 ext. 625

Fax: (86 20) 8666-6409

E-mail: shuquan.li@mail.doc.gov

Chengdu

Ling Chen, Commercial Representative

Commercial Service, Chengdu

No. 4 Ling Shi Guan Lu

Chengdu, Sichuan 610041, China

Tel: (86 28) 8558-3992 ext. 6939

Fax: (86 28) 8558-9221

Email: ling.chen@mail.doc.gov