The medical device market is one of the fastest growing market sectors in China with the industry maintaining double-digit growth for over a decade. In 2016, the medical device market reached $53.62 billion, an increase of 20.1 percent compared to 2015. 72.7% of this growth is fueled by hospital procurements.
 

(Unit: USD billion)

In 2016, China’s total health expenditure was USD 663 billion, and accounted for 6 percent of China’s GDP. Health expenditure is expected to increase to between 6.5-7 percent by 2020. In 2016, the medical device market in China reached 53.62 billion USDs, an increase of 20.1 percent compared to 2015. 72.7% of this growth is fueled by hospital procurement.

Market size of the Chinese medical device sector (unit: USD100 million) according to 2016 China Medical Device Blue Book.

Currently China’s medical device market has two distinct categories. The first of these are the domestic manufacturers who supply low to mid-range products. Over 80 percent of the domestic manufacturers belong to this category.  The second category includes foreign-sourced, high-end products supplied by large companies like GE, J&J, Philips, and Siemens. According to the Annual Report of China’s healthcare Industry issued by China Chamber of Commerce for Import and Export of Medicines and Health Products (CCCMHPIE), China had approximately 16,000 domestic medical device and equipment manufacturing companies in 2017. The United States ranks as the #1 foreign supplier of medical devices in China, followed by Germany and Japan. These three countries represent the majority share of China’s imports.

2014-2016 China’s Import of Medical Device by HS code from the Top 3 Countries
(USD millions)

In 2016, China had approximately 27,360 hospitals, of which 23,900 were public and 3460 were private. Foreign-invested medical institutions are facing challenges of high corporate tax rates, a cap on foreign ownership and eligibility requirements for Social Health Insurance. All hospitals are classed ＩＮＴＯ three levels (Tier one, two and three) based on hospital size and capability. Tier three is the most comprehensive of general hospitals with a bed capacity exceeding 500. They are responsible for providing specialist health services, perform a bigger role with regard to medical education and scientific research and they serve as medical hubs providing care to multiple regions.
  
Opportunities
The best-selling prospects in the medical device sector include:

In vitro diagnostic equipment and reagents: clinical and diagnostic analysis equipment, diagnostic reagents, medical test and basic equipment instruments, and point of care testing (POCT).

Orthopedics

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 systems, body rotary gamma knife, simulator, linear accelerator, laser diagnostic and surgical equipment, nuclide treatment equipment, physical and rehabilitation equipment.

Medical diagnostic and imaging equipment: black & white and colored supersonic diagnostic units, sleeping monitor, digital X-ray system, MRI, CT, DR, and ultrasound equipment.

Surgical and emergency appliances: anesthesia ventilation systems and components: high frequency surgical 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.

 
Upcoming Trade Shows & Events 

MEDTEC China 2017
September 20-22, 2017
Venue: Shanghai World Expo Exhibition & Convention Center
Sponsored by: UBM
Contact: Mr. Alston Tian
Tel: + 86-10-57652822
Fax: +86-10-57652999
Email: Alston.Tian@ubm.com
 
Dentech China 2017
October 25-28, 2017
Venue: Shanghai World Expo Exhibition & Convention Center
Sponsored by: UBM
Contact: Ms. Sandra Shen
Tel: + 86-21-61573953
Fax: +86-21-61577272
Email: Sandra.shen@ubm.com
 
Web Resources
China Food and Drug Administration (CFDA)
The National Health and Family Planning Commission (NHFPC)
China Association of Medical Device Industry (CAMDI)
China Chamber of Commerce for Medicines and Health Products (CCCMHPIE)