Local experts diagnose the widespread popularity of imported medical devices
10/21/2005
The market for imported medical devices in China has been growth rapidly and is expected to continue growth at 14% annually, and for high-end products, the growth rate can be as high as 20%, according to local medical device market watchers.
Local medical device experts recently concluded six reasons for widespread popularity of imported medical device products:
1. Huge Chinese market potential. The total Chinese medical device market size in 2004 was US$54.8 billion, and the size is rising sharply every year. The Chinese medical device market is potentially the biggest in the world, and only the market of digital medical equipment in China is estimated to reach RMB 150 billion annually in 2025.
2. The advance technology of imported medical devices and equipment is apparent compared with local products, especially in the sector of high-end products such as digital medical equipment.
3. Local medical institutions and their buyers tend to have a fixed attitude that foreign products are better and more reliable. Many medical institutions specifically request imported products in purchase tenders.
4. Most high-end local products rely on assembling of imported parts. China’s import duty policy favors imported finished products over imported parts (duty is much higher on imported parts than finished products).
5. Medical institutions favor imported medical devices and equipment because they are able to charge higher fees on examinations using such products, therefore they are motivated by bigger profits.
6. Exporting countries usually provides long-term and low-interest loans for import of high-end medical equipment. Hospitals do not need to have a large cash-outlay when purchasing imported medical equipment due to foreign government financing. In addition, fat kickbacks are often offered, providing hospital officials additional incentives to buy such products.