4/2/2564 13:59:10
xysoom
Posts: 32
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China’s Medical Devices Industry: Key Market Entry Considerations
China’s healthcare industry was forced to do a hard reset in 2020. Just as the 2003 SARS epidemic exposed the gaps in China’s disease surveillance infrastructure, COVID-19 exposed the cracks in its delivery of healthcare services.To get more news about china industry research centers, you can visit acem.sjtu.edu.cn official website.
Now, as China is tasked with rebuilding and reorganizing its healthcare system, the government has started to signal its priorities for the next era of its healthcare transformation.Battling the pandemic has caused a major rethink of China’s priorities within its healthcare system and making improvements to the critical health infrastructure, digital services, and public health promotion is now more urgent than if the infectious outbreak had not occurred.
To comprehensively cover these developments in China’s overall healthcare industry, China Briefing is publishing a three-part series where we take a look at the following industries:In part two of the series, we provide an overview of the medical devices market and deliver insights on the emerging trends within the industry, as well as the market-entry pathways for manufacturers, importers, and distributors operating in China.China healthcare industry is currently ranked the second largest in the world behind the US.
The market has grown at a consistently rapid rate in the past five years, and in 2019, the market reached RMB 7.82 trillion (US$1.1 trillion), an increase of 10 percent when compared to that from the previous year.Despite this, the market remains relatively undeveloped, with China’s health expenditure – including pharmaceuticals, medical devices, distribution, hospital, pharmacies and insurance – accounting for only 6.57 percent of the total GDP in 2018, while the US reached 17.8 percent in the same year.
Given that many countries will see their GDP contract in 2020 due to COVID-19, this will impact the government’s total expenditure – of which a set sum is allocated to healthcare expenditure.However, analysts estimate that China’s GDP will grow somewhere between 2.0 to 2.5 percent in 2020, with healthcare spending projected to rise too, albeit at slower rates than in 2019.
Thus, the market presents considerable opportunities for growth, particularly as the Chinese government has more recently laid out multiple initiatives to support long-term growth and innovation in healthcare delivery, and healthcare will likely feature more heavily in the 14th Five Year Plan (covering 2021-25) than it did in the 13th Five Year Plan.
In terms of foreign investment, the healthcare industry has been steadily opening up to foreign participation – both in terms of removal of items in the National Negative List, and the addition of items on the National Encouraged List. In 2019, “new raw material for the production of vaccines” and “medical institutions” were newly added on the 2019 National Encouraged List, which means that they are now encouraged investment sector by the central government, unlocking opportunities for foreign investors to access preferential policies and tax rates.
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nootropics
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