China is one of the most populous nations in the world, and as such it is known for its largely growing economy, with its multi-faceted healthcare sector and various contributing factors.
The Chinese medical device industry
The medical devices industry is one of the core factors in contributing to China’s healthcare sector. It currently has a huge growth potential due to China’s very large population, but despite this, the market for medical devices is still quite underdeveloped. However, revenues of the sales for medical devices amounted to $21 billion in 2011, and due to the country’s highly increasing annual growth rates, it is predicted to be the second largest market before 2020.
Domestic manufacturing in China
There is a very huge discrepancy between the higher and lower ends of the Chinese medical devices market. Out of an estimated figure of 14,000 domestic manufacturers, over 80% has been found to focus on the market’s lower end. These domestic manufacturers are highly concentrated in Beijing, Shanghai, Guangdong, Jiangsu, and Shandong.
Since the domestic manufacturers focus on the low-end segments of the market, there is more avenue for foreign companies to dominate the market’s higher end, and quipped with this is the institutions and patients’ preference for international products, most especially for western technology. Approximately 80% of the total of the more expensive medical devices come from foreign companies. This poses a challenge to the Chinese medical devices industry to up the ante in terms of thinking of cutting-edge products and solutions that could rival the multi-nationally dominated market.
The Chinese pharmaceutical industry
In terms of the market for pharmaceutics, China was the second largest in the world in 2015. It surpassed the market values of India, Brazil, and Russia combined by $20 billion, with its own market value of $62 billion. This is due to China’s large economic growth and an increase in healthcare spending.
In the local market, China has a large number of generics and traditional medicine from many low-value manufacturers in over 5,000 pharmaceutical companies. However, in the global market, there are no known patented Chinese drugs, and western multinationals dominate even the Chinese pharmaceutical market. Just like in the medical devices market, the government is taking steps to achieve a more competitive sector, and this could be seen in hospital and healthcare facilities construction. For the past ten years, investment has highly increased, with a total of $11 billion annually. The Chinese government’s 12th five-year plan from 2011-2015 also ensures the continued construction of new hospital and development of existing facilities.
The role of technology in the Chinese healthcare industry
In today’s modern age, the advent of technology and its effects greatly affect future medical solutions. You need a thorough market research like what Alliance Experts has provided to addresse the concern of those in remote areas with no access to well-trained doctors. Moreover, this will help the elderly care sector in terms of addressing high demands. Vast improvements are needed in housing the elderly and, most importantly, training medical staff who would cater to the needs of not only the elderly but also those needing proper medical attention.