Great Potential in China’s Medical Device Market
Friday, June 28, 2013
We ran across this interesting article in MDDI on the market potential of China. Though the United States and Europe both greatly surpass China’s healthcare, China is expected to catch up to Europe by 2020. A healthcare stimulus was implemented in China, which has lead to investment in the country’s healthcare infrastructure. China’s ultimate goal is universal healthcare for its citizens by 2020. Currently, healthcare spending is low in China, but it is expected to increase. Unfortunately, China has been struggling with rising labor and shipping costs. However, these circumstances have encouraged the medical technology industry to become more prominent and invest in R&D.
Instead of the FDA, China has the SFDA, which is quite similar. While the SFDA must register all imported devices, the Ministry of Health is responsible for public health policies, laws, and regulations. Though companies that have CE of FDA approval may easily place their products on the market in China, the FSDA has been deemed as complicated and will be improved in the years to come.
China has had a reputation for having phenomenal economic growth, but that reputation has become less true in recent years as challenges have arisen. In addition to rising salaries, the regulation system in China is sub-par with too many steps that are quite lengthy. China’s regulatory system places precedent on evaluation and rights over supervision and responsibilities respectively. Furthermore, the medical technology companies in China typically release products that and indistinguishable among others. Also, competition at the low end of the market had diminished prices and profit margins.
- Health Care