The Medical Technology Blog

China, in terms of both its healthcare system and medical device market, is a nation of contradiction. As the world’s most populous country, and one in possession of the fastest growing major economy in the world, the nation offers a vast array of opportunities for overseas investors, complemented by a massive potential workforce and consumer base. The Chinese healthcare industry has considerable potential, the economy has developed impressively and the medical device market has exhibited strong growth in recent years.

The market remains one of the most difficult to penetrate. The size of the country, its lack of infrastructure outside the largest cities, and its political make-up are all far from conducive for selling easily. Direct selling by foreign firms is not allowed, so there are three basic choices: selling indirectly through a distributor, establishing a joint venture with a Chinese company, or establishing a wholly-owned venture.

China’s medical market is fragmented. Local city governments have a great degree of autonomy, and the richer cities, such as Shanghai or Guangzhou, are, in many spheres of life, self-ruling. This leads to wide differences in regulatory policies and attitudes; methods of operating in one city or province have no guarantee of success in another. The language issue must also be taken into account; there are many dialects of Mandarin Chinese, the official language, which can be mutually incomprehensible. Due to these factors, China is best seen as a collection of relatively small markets, each based around a wealthy city, rather than a single large market.

Each will have its own trade practices, purchasing policies and regulatory concerns. Over this is a national framework of regulations, bureaucracy and economic policies, itself administered by a baffling array of overlapping bodies. Intellectual property laws are strong in theory, but very weak in practice. Many overseas manufacturers see China as a long-term prospect which bears few short term rewards.

For more information please click on the link to…

…China Medical Device Market

Espicom Business Intelligence