Medical Device Trade Mission to China

Mission Statement

U.S. Department of Commerce, International Trade Administration

September 2002 Medical Device Trade Mission to China

Mission Description: A senior International Trade Administration official will lead a medical device trade mission to Beijing, Chengdu and Hong Kong, China from September 15-24, 2002. The mission will include representatives of U.S. medical and dental equipment and supply firms interested in entering or expanding existing business in the Chinese market. Following the mission, participating firms may further leverage their presence in China by electing optional visits to Shanghai and Guangzhou for additional business meetings under the U.S. Commercial Service's Gold Key Service.

Commercial Setting: U.S. medical device exports to China grew over 100% from 1997-2000, to $227 million, and are on pace toward $275 million for the mainland alone in 2001. (A further $245 million in U.S. exports are destined for China's Hong Kong Special Administrative Region in 2001.) Chinese imports of medical devices from the rest of the world show similar, sustained growth. Increasingly, U.S. medical exporters perceive short-term sales opportunities and a long-term strategic imperative to establish a market presence in China. However, business in China poses tough challenges, especially for the small/mid-sized companies that comprise the bulk of the U.S. medical device industry. Product registration rules elicit frequent questions. While tariffs should fall further with China's entry into the World Trade Organization, local procurement policies, test requirements, protection of intellectual property and rules on types of business activity which foreign firms may conduct remain nettlesome, making good connections inside China a prerequisite for business success. As a result, there appears great value in the kind of introductions which the Commerce Department can provide through an official trade mission.

Mission Goal: The objective of this trade mission is to introduce U.S. companies to government officials responsible for medical regulations and healthcare, public and private hospital buying agents, and other potential business partners. The mission will focus on identifying opportunities for sales of medical and dental devices, clinical laboratory products and related supplies. An emphasis will be placed on more advanced medical technologies, in which U.S. exports enjoy a comparative advantage in China.

Mission Scenario: Participants will visit three of China's metropolitan centers:

•Beijing - the capital, where the mission will have access to a major municipal market as well as central government officials and U.S. Embassy staff for regulatory and business climate briefings;

•Chengdu - capital of vast Szechuan province and gateway to 190 million people in central and western China; and

•Hong Kong - key hub for distribution to the mainland, and a major market in its own right.

Following the mission, for an extra fee participants can elect to visit the coastal commercial centers of Shanghai and/or Guangzhou for optional "Gold Key Service" meetings arranged by the U.S. Commercial Service. Participants will be briefed on local medical markets in each city visited. Briefings will be followed by meetings with government regulatory officials and experts on the local healthcare market and the Chinese medical industry. Participating U.S. firms will be introduced to potential agents/distributors, hospital administrators, and medical facilities' purchasing managers through group events, site visits and one-on-one meetings tailored to each firm's interests.

Timetable: Recruitment will begin in November 2001 and should be concluded no later than July 12, 2002. Applications received after that date will be considered only if space and scheduling constraints permit. The trade mission is tentatively scheduled to commence in Beijing on September 15, 2002, continue on to Chengdu, and then to Hong Kong, where the main mission program will conclude on September 24. Firms electing Gold Key Service spinoff visits to Shanghai or Guangzhou may then do so from September 25-27. The precise schedule will depend on the availability of Chinese government and business officials, specific goals of mission participants, and air travel schedules.

Criteria for Participant Selection:

•Diversity of product mix among participating companies, and these products' relevance to mission goals, including the focus on advanced medical technologies.

•Business opportunities for the company in China.

•Maximum of 17 and a desired minimum of 10 participating companies.

•Timeliness of complete application and participation agreement, including payment of all applicable participation fees ($3200 for a company's first representative; $800 per additional representative; and $550 per day, per city for optional Gold Key Service in Shanghai or Guangzhou).

•Provision of adequate information on company's products/services and primary market objectives, in order to facilitate appropriate matching with potential business partners.

Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Internet, press releases to the general and trade media, direct mail and broadcast fax, notices by industry trade associations and other multiplier groups, and at industry meetings, symposiums, conferences, and trade shows.

A company's products or services must be either produced in the United States or, if not, marketed under the name of a U.S. firm and have at least 51 percent U.S. content of the value of the finished product or service. Any partisan political activities (including political contributions) of an applicant are irrelevant to the selection process.

Contact: Ms. Lisa Huot
Medical Device Industry Desk, ITA/OMMI, Room 1015
U.S. Department of Commerce, Washington, D.C. 20230
Tel: 202-482-2796; Fax: 202-482-0975
E-mail: lisa_huot@ita.doc.gov

C:\WINDOWS\TEMP\ChinaMedTMstmSep02-OKteb19Nov01.wpd Updated and approved November 19, 2001