Medical Equipment
China
Best Prospect
China is now the world’s third largest market for medical equipment, according to published market data, and continues to grow at a tremendous pace. Another industry source stated that China’s medical equipment market topped $6 billion in 2005. China’s medical device market was estimated between USD6.85 and 7.5 billion in 2006, and is forecasted to reach as high as USD8 billion through the end of 2007. The growth of medical equipment sales was reported at 14% -15% annually. More specifically, sales of high-end medical equipment, much of which is imported, have been increasing by 20%. Clinical laboratory equipment and reagent sales are growing at about 15-20% per annum. According to incomplete figures from the World Trade Atlas, China’s imports of medical equipment accounted for over USD4.6 billion in 2005 and were on track to eclipse USD4.8 through December 2006.
Through the end of 2006, seven of the ten best selling producers of medical equipment in China were reportedly joint ventures and foreign-invested firms. Moreover, the leading fifty foreign and domestic firms in this industry in China account for over fifty percent of total sales and profits. Currently, Chinese end users view U.S. products as superior in format, 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. According to the domestic industry medical device association, there are more than 11,800 member manufacturers, 60 percent of which are privately owned companies. The number of producers is growing annually by 13.4 percent. Some foreign firms with operations in China also have become members. The top three supplier countries through 2006 in ten major product categories include the United States, which sold $1.6 billion in all of 2005 and nearly $1.5 billion worth of equipment during January to November 2006. German exports topped $831 million in 2005, and were nearing an estimated $825 million in imports for all of 2006, respectively. Third, Japanese suppliers accounted for $771 million in exports in 2005 and were projected to top $804 million for all of 2006. Positive indicators fueling imports and increased domestic production include the desire to utilize a wider array of advanced technologies in China’s 175,000 domestic hospitals & clinics. Currently about 15 percent of the medical devices in use were made in the 1970s, according to statistics compiled by China’s medical devices industry association (CAMDI).
China’s Imports of Medical Devices 2005-2006 in million dollars
(HS9018/19/20/21/22, 902720/30/50/80/382200)
| Year | 2005 | Share | Through Nov. 2006 | Share |
| World | 4634 | 4360 | ||
| U.S. | 1586 | 34% | 1490 | 34% |
| Germany | 831 | 17.93% | 757 | 17.4% |
| Japan | 771 | 16.64% | 737 | 16.9% |
Source: World Trade Atlas
Best selling prospects, according to the number of registrations of new Class II and Class III products with SFDA in 2005 include (but are not limited to):
•Therapeutic Products:
Tri-dimensional Ultrasonic focused therapeutic system, body rotary Gamma knife, simulator, linear accelerator
• Medical Diagnostic Products: Black & white and colored supersonic diagnostic unit, sleeping monitor, digital X-ray system, MRI, CT, DR
• Operating & Emergency Appliances:
Anaesthesis ventilation systems• Components: High frequency and voltage generators
Although the long-term outlook for American suppliers is good, the problem of redundancy in the product registration testing process, the uncertainty of the regulatory environment (the tendering process in different regions and pricing control issues), and the government’s efforts to address concerns over accessibility and affordability of healthcare will continue to have an impact upon the profit expectations for U.S. companies doing business in China.
Resources
China Medical Equipment Fair (CMEF Dalian)
The China Medical Equipment Fair (CMEF) was first introduced in 1979 and has become the largest event of its kind in China. The most recent Fair in Zhengzhou during Oct. 31-November 3, 2006, featured over 1,787 exhibitors from 20 countries. Leading foreign exhibitors include GE Healthcare, Siemens, J&J, Medtronics, Toshiba, Hitachi, Kodak, Fuji, Drager, Aloka, etc. CMEF attracts a large attendance of medical device distributors from across the country. A recent survey conducted by the show organizer indicated that as high as 53% of the more than 48,500 domestic attendees were distributors or agents. This semi-annual Fair series provides opportunities for U.S. exhibitors to identify, screen, and evaluate prospective distributors. For general information about this trade show, please contact yang.liu@mail.doc.gov or visit our web showcase for the US Pavilion at the certified trade fair at www.buyusa.gov/china/en/cmef2007.html.
CMEF 2007 Spring
Date: April 10-13, 2007
Venue: Dalian World Expo Center (Dalian Xinghai Square)
Contact: Mr. Wei Wei
Phone: 8610-6510-2751
Fax: 86-10-6517-1476
E-mail: wei.wei@reedsinopharm.com
Website: http://www.reed-sinopharm.com (direct them to the exact page for cmef 2007 – not the main page)
MEDTEC China
Canon Communications LLC based in Los Angeles, U.S, will organize a MedTec China event in Shanghai in 2007 that will be certified by the US Department of Commerce. At the show, local manufacturers will have access to hundreds of leading medical OEM suppliers from around the globe providing a vast array of equipment, materials, and services. In addition to a major exhibition, MEDTEC China will also feature a conference with presentations by CAMDI, the State Food & Drug Administration (SFDA), and other government organizations. For general information about this trade show and to reserve space, visit the organizer’s website at http://www.cancom.com/tradeshows.php, or
, contact Lynn.Jiao@mail.doc.gov in Shanghai.
Date:August 28-30, 2007
Venue: Intex Center, Shanghai
Contact: Kevin O'Keefe
Phone: 1 310 445 4200
E-mail: kevinokeefe@cancom.com
CHINA MED
In 2006, the organizer reported that 451 exhibitors, including 163 foreign companies participated. National pavilions were organized by Germany, Spain, Japan and the Republic of Korea. For general information about this trade show and to reserve space, visit the organizer’s website.
Date: April 22-24, 2007
Venue: China International Exhibition Center
Contact: Flora Wang, Messe Dusseldorf
Phone: 86-10-6510-2751
Fax: 86-10-6517-1476
E-mail:chinamed@mdc.com.cn ; flora@mdc.com.cn
Website: http://www.chinamed.net.cn/
U.S. Commercial Service Contact Information in China
Beijing Office:
Tel: (86-10)8529-6655
Fax: (86-10)8529-6558/9
Richard Craig
Sun Shuyu
Shanghai Office:
Tel: (86-21)6279-7930
Fax: (86-21)6279-7639
Kevin Chambers
Lynn Jiao