Chang-Hong Whitney07.24.08
With half the year complete, now is an opportune time to evaluate China’s medical market and see how it has fared. First and foremost, China’s medical market is growing steadily in 2008, boasting double-digit gains all around. According to national statistics published by the National Development and Reform Commission, the medical device and instrumentation industry posted positive growth of 24.3% in the first quarter, ended March 31, compared to the same period in 2007. The central region presented bigger growth (31%) than the eastern (23.54%) and western (17.66%) regions.
Importation of foreign-made medical products also showed growth from January to May. According to statistics published by Nanjing Customs, importation of medical devices at this Chinese port increased 22.8% compared to the same period in 2007. The growth is noteworthy because it progressed in spite of the pricing controls and restrictions placed on equipment purchasing by the central and local governments. More products from Europe were purchased than those from the United States—importation of products from Europe increased 63.9%, while US imports actually decreased 0.8%.
High-end products such as computed tomography and magnetic resonance imaging (MRI) equipment still contributed the large percentage (60%) of total imports for medical products. The key driving forces for the steady increase in the environment of heavy government controls include the expanding demand in healthcare, growing disposable income among China residents and the aging population. In addition, high-end equipment purchased during the early 1990s generally has entered into the last years of useful life, prompting replacement purchases. Although Chinese companies can satisfy demands for mid-level products, high-end equipment still mostly comes from foreign manufacturers. Furthermore, the recent well-publicized earthquake in Sichuan Province partially contributed to the high import of medical products at Customs.