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This report provides insights into China’s healthcare tech market, covering the latest news about government initiatives, industry dynamics, and macro environment trends.

Multinational MedTech giants accelerate localization strategies in China against COVID-19 headwinds

Medical system reform maintains pace

COVID-19 lockdowns significantly disrupted the usual operations of the medical system in China. However, government initiatives to reform the medical system continue to move forward. Some initiatives are as follows:

  • The Chinese government continues to invest in public hospitals as a crucial part of its medical system reform. In 2020, 2021, and 2022, total budgets allocated to public hospital investment accumulated to 30 billion yuan (4.3 billion US dollars).
  • Volume-based procurement further expands from drugs to medical devices, including coronary stents, and orthopedic products like artificial joints. Vendors that successfully secure tenders will see big shipment increases, but heavily squeezed profits. Containing costs to defend profitability becomes crucial for any medical device manufacturer participating in volume-based procurements (please refer to Omdia’s China Healthcare Tech Insight – August 2021).
  • Despite the official paper issued in October 2021 by China’s Ministry of Finance to ensure foreign suppliers’ fair participation in government procurements, made-in-China is still a common precondition to participating in government procurements (please refer to Omdia’s China Healthcare Tech Insight – November 2021).