The Chinese medical device industry is facing difficulties, with over 90% of foreign equipment? Why is it monopolized by foreign investment

 

Date：[2023/12/16]
 

In the past years of development, the achievements of China's medical device industry are also evident to all. According to statistical data released by professional institutions, the domestic medical device market has currently taken a leading position globally, occupying the second largest market share in the world. However, based on the current development of the medical device market, it is undergoing unprecedented changes.
Due to the influence of market environment and marketing factors in the procurement process of medical devices in China, adjustments and changes must be made in these aspects.
In addition, with the increasingly fierce competition in the global medical device industry, the updating and iteration speed of various medical products is also constantly accelerating.

Especially in the current increasingly complex international situation, many enterprises are facing enormous pressure in terms of medical device innovation

For a long time in the past, the products in China's medical device market often came from overseas, which was also the main reason for the high cost of medical treatment for the public.
In order to further improve the problem of the imported medical device market, since 2014, the country has been focusing on promoting the development and support policies of domestic medical equipment, and has also vigorously rectified the issue of premium for imported medical equipment.

Under the comprehensive promotion of the country, medical enterprises in China have also made significant improvements in production technology compared to before, providing more assurance for the quality of medical equipment, and even some medical equipment has surpassed imported products

In the past few years of development, China has made significant breakthroughs in domestically produced stents and nuclear magnetic resonance equipment.
Although there is still a certain gap in front-end technology compared to Western countries, it can fully meet domestic medical needs.

For Chinese medical device manufacturers, it is necessary to further increase their research and development efforts and produce more advanced medical device equipment

Due to the long-term occupation of the high-end medical equipment market by overseas enterprises, this situation is extremely detrimental to the healthy development of the domestic medical industry. In addition, the high cost of medical equipment will inevitably lead to an increase in employment costs for the people.
China has also made certain achievements in the field of medical devices, especially in the field of biomedicine, with more advanced technology.

Although some overseas companies are attempting to continue monopolizing the Chinese market in this field, based on the current situation, China has an advantage in the "Lite Only Construction" technology

The anti monopoly of Chinese companies in the field of biotechnology has also affected many overseas companies, and some overseas companies have even issued strong protests against Chinese companies, accusing them of violating market rules.
In fact, for Chinese enterprises, only by continuously developing their own technology, investing more time, energy, and costs in research and development, and doing well in research and development, possessing independent research and development technology, can they have more say in the international community.

But we also have to admit that although many fields have successfully surpassed European and American countries, overall, we still need to continue to work hard in areas such as technology to narrow the gap with Western countries

The country has increased its efforts in rectification, especially in the area of premium for imported equipment and instruments, and has implemented many measures, even continuously increasing support to promote the research and development of domestic medical equipment.
Nevertheless, it is still impossible to change the situation where the high-end medical market in China is dominated by overseas brands. Most medical devices in this market are monopolized by overseas brands.

The fundamental reason why such problems have existed in the Chinese medical market for a long time is the existence of unfair competition in the medical device industry

Many foreign companies set high prices for medical products in order to seize the Chinese market.
It was once reported that when banks imported nuclear magnetic resonance machines from overseas enterprises, the price of this equipment was tens of millions of yuan. After purchasing the equipment at this price in the hospital, the overseas brand will immediately refund half of the cost to the hospital.

Occupy the market space of medical devices in China through this kickback method. This kind of hidden rule often appears in the medical device industry

Compared to imported equipment, domestic equipment does not have a significant difference in quality, but the price of domestic equipment is relatively low.
Even though hospitals can receive kickbacks, they are far from the kickbacks given by overseas brands.

In such vicious competition, China's independently developed medical devices and equipment naturally do not have an advantage

Of course, another important reason why overseas brands occupy a large space in China's medical device industry is that there is still a significant gap between China's technological level and that of countries such as the United States and Europe.
This is also why over 95% of high-end medical equipment in most hospitals comes from overseas, which is an important reason.