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The Covid-19 pandemic accelerated the inventions of the medical industry, with several products being tested on a massive scale and gaining widespread popularity among people.
From 2015-2019, Chinese foreign trade in medical devices grew nearly 10% per year (outpacing worldwide growth). In 2019, China’s medical device exports and imports reached USD 29 billion and USD 27 billion, respectively. Therefore, there is no doubt that the Chinese medical device industry market is a large and growing market, with an annual growth rate of 20% since 2015. The high demand for medical technology can be attributed to the following main driving forces:
Increased demand for high-tech medical device imports to treat chronic and age-related diseases (given an ageing population)
China’s government prioritization of health and innovation, with added incentives provided for manufacturers looking to expand into China
Rent reduction, settlement bonuses or product registration bonuses
Lower registration fees
Support in product research, market entry approval and downstream procurement
Income growth results in more healthcare spending per capita
Proliferation of healthcare clinics and hospitals
Therefore, China presents a huge opportunity for medical technology firms since there exists a high demand for foreign-made medical devices, especially innovative and high-tech ones.
With Summer Atlantic Capital’s strategic partnership with Sinopharm, a leading healthcare group in China, we are able to strengthen the likelihood of a successful joint venture and support the medical technologies of foreign companies. Sinopharm will take a lead role in the CFDA approval process, sales & distribution, as well as potentially participating with direct investments into the joint venture itself either initially or as the JV expands. You can also contact us at info@summeratlantic.com if your company has any questions regarding our joint venture partnerships, distribution deals, or any other structures for Chinese expansion or for any general questions regarding the Chinese market.
Thank you and we look forward to working with you.
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