The country’s Made in China 2025 initiative was launched in 2015 to help transform China into a leading manufacturing power. It is being delivered by the China-Britain Business Council (CBBC) and the UK Trade and Investment (UKTI) and has already launched 50 pilot projects across China.

The initiative is particularly focused on the development of high-end medical devices across sectors such as diagnostic imaging, robotic surgery, wearable devices and telemedicine.

Under the plan, the government is aiming to raise its domestic content of core components and materials to 40% by 202 and 70% by 2025. The initiative also aims to increase domestic device use in hospitals to 50%, 70% and 95% by 2020, 2025 and 2030, respectively.

The majority of China’s domestic manufacturers are currently providing cheaper local alternatives to other branded medical devices.

Foreign manufacturers are looking to use the existing distribution networks, establish key partnerships with local suppliers and set up innovation centers to enter into the Chinese market. As the market shifts towards the use of local devices, they need to adopt other strategies to remain competitive.

Tina Deng, medical devices analyst at GlobalData, said: “Imports of medical devices will further reduce with implementation of the plan in the long term. 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 explains: “While acquiring domestic players, international companies need to be cognisant of each province's guidelines on ‘local’ manufacturers. 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.”