China looks to increase medical device manufacturing
Medical device production in China is poised for growth thanks to an Government initiative in that country, according to a new report from GlobalData.
As part of its "Made in China 2025" plan, a national 10-year initiative to beef up the country's industry, China has tapped medical devices as an industrial sector to focus on as it pushes for technological development.
The plan calls for Chinese manufacturers of medical devices to increase the percentage of domestic core components and materials to 40 percent by 2020 and 70 percent by 2025, while raising the number of domestically produced devices in top hospitals to 50 percent in 2020, 70 percent in 2025 and 95 percent in 2030.
With the country's domestic device manufacturers gearing up, imports from foreign manufacturers will decline, according to Tina Deng, medical devices analyst at Global Data. "Competition in the Chinese medical device market, the most important battleground for medical device firms of all emerging economies, will become more intense than ever,” Deng said in a prepared statement.
Nevertheless, Deng also has advice for companies looking to enter the Chinese market anyway.
“While acquiring domestic players, international companies need to be cognizant of each province's guidelines on ‘local’ manufacturers," Deng said in a news release. "They should make enough changes to an innovative device and classify it as a Chinese device. Alternatively, foreign companies may seek to achieve broader product portfolios that offer better outcomes and prove cost-effectiveness over local products to have higher appeal for clinicians, patients, and payers."