Page 354 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
Medical Devices and Equipment regarded as one of the most promising medical
device markets in the world (Emergo).
China’s demand for medical equipment has
grown at a fast pace in the past decade. In the next Pharmaceuticals
decade, both production and demand will continue
to grow. The Chinese economy maintains a high- Chinese hospitals, especially those with good
speed growth which has been stimulated by the reputations in big cities, are always crowded,
consecutive increases of industrial output, import with patients who have traveled long distances to
and export, consumer consumption and capital wait for several hours, or even all night, just for
investment for over two decades. In 2016, the a few minutes’ consultation with a doctor. Many
medical device market reached US$53.62 billion, patients visit hospitals not because they are in
an increase of 20.1 percent compared to 2015, urgent need of medical care, but because they
much higher than the 7-8 percent global growth want follow-up treatment for chronic conditions
rate. 72.7 percent of this growth is fueled by or simply to get medicine. This is because doctors
hospital procurement. The Chinese medical device in China are only allowed to prescribe medicines
market is fostered by the increasing demand for in limited doses: usually in third-tier hospitals
high-tech medical device imports to treat chronic only enough to last up to two weeks and in
and age-related disease. Also, China’s 13th Five- community hospitals prescriptions only last
Year Plan prioritizes health and innovation, which one month maximally, and patients cannot buy
will improve prospects for foreign medical device prescription drugs without a prescription. Thanks
manufacturers (MtC). to the internet and smart hospital technologies,
a change is under way that is making it easier for
The Chinese medical device industry was valued patients to get the medicines they need. Bestyoo,
at US$18.8 billion in 2016 and is projected to grow an enterprise affiliated to Chinese pharmaceutical
modestly through 2020, when it should reach company Baheal Pharmaceutical Group, has been
over US$25 billion. The Chinese medical device cooperating with local governments and hospitals
market is buoyed by the increasing demand for to establish online prescription transferring
high-tech medical device imports to treat chronic and sharing systems to solve such problems by
and age-related disease. Also, China’s 13th Five- diverting patients’ drug purchases from hospitals
Year Plan prioritizes health and innovation, to offline pharmacies. Bestyoo has designed
which will improve prospects for foreign medical two information system products - one for local
device manufacturers. Chinese medical device governments and the other for hospitals. The
manufacturers dominate the domestic market, but system for local governments incorporates real-
they have the reputation of delivering mostly low- time prescriptions information from medical
tech and mid-range products. Chinese hospitals institutions, medical insurance billing information,
and healthcare providers prefer imported devices, and drug sales information in a region. The
especially when purchasing innovative and high- prescription information, once verified and
tech devices. Significant demand for foreign-made, approved by a pharmacist, will be transferable
high-end devices is also fueled by China’s aging between different medical institutions, or from
population continues to grow, and the Chinese medical institutions to approved pharmacies, drug
government pushes to improve the quality of care. delivery services, and online sales terminals, if
That being said, the volatile regulatory system in patients authorize the transfer with text message
China presents a significant challenge for foreign verification codes. The system for hospitals
manufacturers. Chinese regulations change is designed to connect to a hospital’s existing
rapidly and foreign manufacturers must comply information system, or HIS, allowing prescription
with obscure requirements to enter the Chinese information to be transferred to approved
market. Successful entry may even require setting pharmacies with the permission of patients. The
up a representative office and your own trading company’s platforms make it much easier for
company, so China may be out of reach for small patients to get medicines legally and safely from
or start-up companies with limited investment pharmacies. For first-time patients at hospitals
capital. Despite these obstacles, China is still
354
Medical Devices and Equipment regarded as one of the most promising medical
device markets in the world (Emergo).
China’s demand for medical equipment has
grown at a fast pace in the past decade. In the next Pharmaceuticals
decade, both production and demand will continue
to grow. The Chinese economy maintains a high- Chinese hospitals, especially those with good
speed growth which has been stimulated by the reputations in big cities, are always crowded,
consecutive increases of industrial output, import with patients who have traveled long distances to
and export, consumer consumption and capital wait for several hours, or even all night, just for
investment for over two decades. In 2016, the a few minutes’ consultation with a doctor. Many
medical device market reached US$53.62 billion, patients visit hospitals not because they are in
an increase of 20.1 percent compared to 2015, urgent need of medical care, but because they
much higher than the 7-8 percent global growth want follow-up treatment for chronic conditions
rate. 72.7 percent of this growth is fueled by or simply to get medicine. This is because doctors
hospital procurement. The Chinese medical device in China are only allowed to prescribe medicines
market is fostered by the increasing demand for in limited doses: usually in third-tier hospitals
high-tech medical device imports to treat chronic only enough to last up to two weeks and in
and age-related disease. Also, China’s 13th Five- community hospitals prescriptions only last
Year Plan prioritizes health and innovation, which one month maximally, and patients cannot buy
will improve prospects for foreign medical device prescription drugs without a prescription. Thanks
manufacturers (MtC). to the internet and smart hospital technologies,
a change is under way that is making it easier for
The Chinese medical device industry was valued patients to get the medicines they need. Bestyoo,
at US$18.8 billion in 2016 and is projected to grow an enterprise affiliated to Chinese pharmaceutical
modestly through 2020, when it should reach company Baheal Pharmaceutical Group, has been
over US$25 billion. The Chinese medical device cooperating with local governments and hospitals
market is buoyed by the increasing demand for to establish online prescription transferring
high-tech medical device imports to treat chronic and sharing systems to solve such problems by
and age-related disease. Also, China’s 13th Five- diverting patients’ drug purchases from hospitals
Year Plan prioritizes health and innovation, to offline pharmacies. Bestyoo has designed
which will improve prospects for foreign medical two information system products - one for local
device manufacturers. Chinese medical device governments and the other for hospitals. The
manufacturers dominate the domestic market, but system for local governments incorporates real-
they have the reputation of delivering mostly low- time prescriptions information from medical
tech and mid-range products. Chinese hospitals institutions, medical insurance billing information,
and healthcare providers prefer imported devices, and drug sales information in a region. The
especially when purchasing innovative and high- prescription information, once verified and
tech devices. Significant demand for foreign-made, approved by a pharmacist, will be transferable
high-end devices is also fueled by China’s aging between different medical institutions, or from
population continues to grow, and the Chinese medical institutions to approved pharmacies, drug
government pushes to improve the quality of care. delivery services, and online sales terminals, if
That being said, the volatile regulatory system in patients authorize the transfer with text message
China presents a significant challenge for foreign verification codes. The system for hospitals
manufacturers. Chinese regulations change is designed to connect to a hospital’s existing
rapidly and foreign manufacturers must comply information system, or HIS, allowing prescription
with obscure requirements to enter the Chinese information to be transferred to approved
market. Successful entry may even require setting pharmacies with the permission of patients. The
up a representative office and your own trading company’s platforms make it much easier for
company, so China may be out of reach for small patients to get medicines legally and safely from
or start-up companies with limited investment pharmacies. For first-time patients at hospitals
capital. Despite these obstacles, China is still
354
