Medical Technology Opportunities

An Expert's View about Medical, Health and Cosmetics Products in China

Posted on: 27 Nov 2011

The Chinese medical device market in China is highly fragmented, with huge differences between regions. There are about 3,000 medical device manufacturers in China. Market size reached RMB120 billion (about £12 billion) in 2010 for medical devices industry, with a 23% growth rate.

Sector briefing Medical Technology Opportunities in China Why China? The Chinese medical device market in China is highly fragmented, with huge differences between regions. There are about 3,000 medical device manufacturers in China. Market size reached RMB120 billion (about £12 billion) in 2010 for medical devices industry, with a 23% growth rate. Government investment promises huge potential for the medical device market, it is predicted that 20% of the total RMB850 billion (about £85 billion) will be invested on medical device purchasing. ?Government investment Find general information on the Chinese promises huge potential for market conditions on UKTI?s website. The the medical device market, it Doing Business Guide for China gives an overv is predicted that 20.3% of iew of China?s economy, business culture, potential opportunities and an the total RMB850 billion introduction to other relevant issues. (about GBP85 billion) will be . invested on medical device purchasing.? UK Trade & Investment Sector briefing: Medical Technology Opportunities in China China helps foreign companies promote their Opportunities products to end customers and hospitals in a relatively short time. The primary healthcare providers in China are government-run hospitals. In addition, there In China, the professional end users are not are healthcare clinics that are either public necessarily the decision makers. The key hospitals or undertakings of the military or decision makers for hospitals are the top state-owned enterprises. There are management and the purchasing department?s approximately 67,000 healthcare organisations staff. They are approached by medical in China, total hospital numbers are 27,000. representatives/distributors across China and Private hospitals and clinics are growing in abroad. The two main methods for purchasing number and catching up on quality of service process are co-centralised bidding and direct and equipment. purchase with fund approval. ? High-end products Technology transfer The government is advocating ?Indigenous A large percentage of Chinese domestic Innovation? for Chinese branded products and manufacturers are making low-end products. services and invested RMB62.8 billion (about For high-end medical devices, the market is £6 billion) in the R&D area from 2009-2012 dependent on imports from overseas at the aiming to improve medical technology in China. moment. And hospitals in China like to market Domestic companies are generally not strong themselves based on their possession of high enough in innovation, and the supply chain is tech equipments. They use this to target rich not fully complete. Therefore there is patients. opportunity for UK business to work with strategic partners in China for technology In China, the top 3 fatal deseases are:cancer transfer. Chinese companies favour advanced (28.53%), cerebrovascular disease(18.04%) technology and best management practice and cardiovascular(16.29%). These all require from overseas, which could help them with advanced medical device for precise diagnosis accelerating product development and quality and treatment. Chinese patients are willing to improvement. pay higher price for treatment with imported technologies and devices. CT, MRI scanners, implants, angiocardiography technology, high- Selling products through distributors end ultrasound diagnostic equipment, etc are in high demand. The Chinese medical devices industry is regulated by the State Food And Drug It is expected that due to the large poplulation Administration(SFDA). Similar to other and the relatively poor level technology in countries, medical devices are categorised into China, the demand for high-end equipment will three classes. All imported products must be continue to grow steadily in the years to come. registered by SFDA in Beijing. Sterilisation products need special approval from the ? Home use medical device Ministry of Health (MOH). This includes portable family health care It is not totally impossible for a product to be device, chronic diseases monitors, eg. registered by a manufacturer from overseas, Electrocardio monitor, blood glucose tester etc. but the process usually takes longer and can be problematic. Therefore registering from ? Public health equipment within China is recommended, which can be done either by a manufacturer itself if Including disinfection technology/product and established in China, or by an appointed agent laboratory equipment. or distributor within China. China has around 140,000 distributors of medical equipment. Most distributors have a stong local focus. Therefore appointing a series of well-connected regional distributors may be ? IVD better than giving a single distributor Chinawide rights. Finding the right partner in UK Trade & Investment Sector briefing: Medical Technology Opportunities in China This market is growing rapidly. It is expected Consulates, across all sectors and in over 100 that the total industrial output will reach markets. RMB2.9 billion (about GBP290 millon) in 2012. Hospitals normally do not recognise other You can be alerted to business opportunities on hospital?s clinical results and repeat similar a regular basis by registering on the UKTI tests for each hospitalisation. The Healthcare website. Find out more on UKTI?s business Reform also implies that with more spending opportunities service on the UKTI website by regional government/tier 2 cities on primary healthcare, there will be an increasing need for basic diagnostic devices and healthcare related equipment. ? Emergency products especially for use in rural areas The 12th Five Year Plan will invest RMB720 million (about £72 million) in this area. ? Food safety diagnosis technology/ product The central government will invest RMB100 million(about £10 million) to set up the food safety monitoring system. Partner with Chinese companies to enter the rural market Healthcare Reform will reinforce rural healthcare networks on medical technology development. It is expected that about 36,000 rural healthcare institutions will receive investment from both the Chinese central Government and local governments to have their facilities renovated and equipped with medical technologies by 2011. Over 2,000 country hospitals, 5,000 central township healthcare centres, 29,000 town health centres, will be benefit from this reform. To exploit the huge potential in the rural market, which covers 80% of the Chinese population, many multinationals are already working with Chinese partners either through JV, acquisition etc to tailormake products for this mid and low end market. Foreign companies could also take advantage of applying for national funds by partnership with Chinese companies to supply equipment to the rural area. If you have any questions on the opportunities above, contact Emily Liang. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and UK Trade & Investment Sector briefing: Medical Technology Opportunities in China Major events and activities UKTI contacts CHINA HOSPEQ Emily Liang www.chinahospeq.com Senior Trade & Investment Officer Time: 18-20 Aug 2011, Beijing British Consulate-General Guangzhou Tel: (0086 0)13922218310 China Medical Equipment Fair (CMEF) Email: eliang@bcggz.com www.cmef.com.cn www.ukti.gov.uk Time: April 2012, Shenzhen Anna Zhao Analytica China (biennial event) Trade & Investment Manager www.analyticachina.com British Embassy Beijing Time: September 2012, Shanghai Tel: (0086 10) 5192 4000 Email: anna.zhao@fco.gov.uk www.ukti.gov.uk Find full details of all events in this country and sector on the UKTI website. Carol Wang New export events are added daily to the site Trade & Investment Officer and you can register to be alerted to them on a British Embassy Beijing daily, weekly or monthly basis. Tel: (0086 10) 5192 4473 Email: carol.wang@fco.gov.uk UKTI?s Tradeshow Access Programme (TAP) www.ukti.gov.uk provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about David Ratcliffe UKTI support for attendance at overseas Head of Life Sciences events. British Embassy Beijing Tel: (0086 10) 5192 4000 Email: david.ratcliffe2@fco.gov.uk www.ukti.gov.uk UK Trade & Investment Sector briefing: Medical Technology Opportunities in China Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Chinese market are advised to you to meet contacts and promote your undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in China, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Chinese market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. ©Crown Copyright 2011 You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government- licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk. This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Medical Technology Opportunities in China
Posted: 27 November 2011

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