Countries along the “Belt and Road” have become important markets for my country’s medical devices to “go global”
The renewal of modern medical concepts has accelerated the renewal of medical device products, and medical devices have become one of the most promising fields. Over the past 40 years of reform and opening up, my country's medical device industry has made considerable progress and development. The industrial chain is basically complete, the supply chain tends to be structurally balanced, and the value chain is in a period of leap from the low-end to the high-end. The willingness of domestic medical device companies to internationalize has been continuously strengthened and the pace has been accelerated. Trade, international cooperation, foreign assistance, and international exhibitions have become important ways for Chinese medical device companies to participate in the international market. Countries along the “Belt and Road” have become important markets for my country’s medical equipment to “go global”.
Export growth to countries along the “Belt and Road” has accelerated significantly
The "Medical Device Blue Book: China's Medical Device Industry Development Report (2019)" recently released by the China Medical Regulatory and Research Society shows that China’s medical device products have been exported to more than 200 countries or regions, covering almost all countries or regions in the world. The basic pattern of regional triadism in Asia, Europe, and North America remains unchanged. On the basis of consolidating traditional markets, we are constantly opening up emerging markets. Products and marketing methods are also diversified. Exports to emerging countries such as India, Brazil, and Russia continue to maintain rapid growth. , South America and Africa have become even broader new markets.
Statistics show that in 2018, my country's medical device foreign trade achieved steady growth. The annual medical device foreign trade reached 45.796 billion US dollars, an increase of 8.9% year-on-year, of which imports were 22.165 billion US dollars, a year-on-year increase of 8.89%; exports were 23.63 billion US dollars. , An increase of 8.88% year-on-year. Last year, my country’s exports to countries along the “Belt and Road” reached US$4.963 billion, accounting for about 20% of my country’s total exports, a year-on-year increase of 10.89%. Among them, the growth rate of medical equipment and health and rehabilitation products was significant, 13.01% and 13.09 respectively. %.
In the past five years, the growth rate of my country's medical device exports to countries along the “Belt and Road” has accelerated significantly, and its proportion has increased year by year. Among them, exports to India, Russia, and Vietnam have grown rapidly, exports to ASEAN countries have increased significantly, and the growth rate of exports to Vietnam in 2018 ranked first; Indonesia, as the most populous ASEAN country, has increased its demand for medical products year by year, becoming my country The main markets that the company has developed have great market potential in medical consumables, ultrasound, atomizers, and small household equipment.
Enterprises are actively deploying "Belt and Road" countries
In recent years, my country’s medical device companies have actively “goed out” and carried out international cooperation, especially investing in the establishment of factories in countries along the “Belt and Road” to provide local markets with cheap, high-quality, and high-quality Chinese products, effectively improving the host country People's livelihood.
Chengdu Xinjinshifeng Medical Equipment Co., Ltd. has jointly established factories with local partners in Pakistan since 2006. Pakistan provides land resources, human resources, and market resources needed for production, while China provides technology and equipment. In 2009, it became the first Chinese medical device company to pass the registration in Pakistan. The company mainly produces single-use indwelling needles, infusion sets, syringes, injection needles and other tube medical devices, totaling 14 types and more than 100 specifications. After years of common market cultivation by both parties, the company's products have radiated into four major provinces of Pakistan and most of the military hospitals. Among them, the blood bag white blood cell filter produced by the company freed Pakistan from the status quo of long-term dependence on Japanese imports.
In March this year, Sinopharm International signed the design, construction and equipment supply project of Doboi Hospital in Bosnia and Herzegovina. This project is the first medical engineering turnkey project jointly developed by Bosnia and Herzegovina and even Central and Eastern European countries with Chinese companies. The construction period is 36 months. The project content includes design, construction, medical equipment packaging and supply and training. China’s exchanges and cooperation in the field of medical and health provide a useful attempt.
Weigao Group carried out a strategic layout on the African continent in 2015, and has established an overall Weigao Africa marketing network in East Africa, Kenya, North Africa, Egypt, West Africa, Nigeria and South Africa. Weigao International established Weigao East Africa as a "bridgehead" to directly participate in bidding by the local government through the pre-sales model. Weigao East Africa also cooperates with local government agencies in medical equipment, and supports and increases customers' confidence in equipment sales with a full range of product solutions through the local after-sales service team.
In order to actively respond to the national "One Belt One Road" initiative, Zhende Medical has invested in the construction of medical supplies manufacturing projects in Ethiopia in combination with the company's strategic development plan. The products produced by the project will be supplied to both the Ethiopian market and the markets of other countries.
Shortcomings in international industrial cooperation urgently need to be filled
After years of hard work, Chinese medical device companies have a certain "going global" ability and strength. However, compared with the developed countries and regional multinational companies in Europe, America and Japan, they are still in the stage of "paying tuition". The concept of sharing and win-win treats international industrial cooperation.
Cai Tianzhi, deputy secretary-general and senior economist of the my country Chamber of Commerce for Import and Export of Medicines and Health Products, pointed out that the internationalization of Chinese medical device companies has problems such as backward technology and lack of core competitiveness. Although my country has certain manufacturing capabilities, there are still structural gaps in products, such as gaps in technology, materials, equipment, and craftsmanship. The lack of new concepts led by independent innovation technology makes it difficult to produce high-end products that meet the trend of medical technology. For new value-added products, some key core component technologies have not yet been completely overcome, the degree of specialization in some subdivisions needs to be improved, and some industrial structures are too fragmented. At the same time, high-end manufacturing equipment and product quality testing instruments rely on imports and lack the right to speak in the advanced medical device market.
In terms of after-sales service, medical device companies must truly achieve internationalization. In addition to their products complying with international standards, uniform and stable quality, and excellent technology, they must also have a complete technical training and after-sales service system. In this regard, my country’s medical device industry is constrained by factors such as short development time, lack of international marketing experience, low brand awareness, weak crisis public relations capabilities, and limited corporate comprehensive strength, and most companies are struggling in overseas markets by their own efforts. , Unable to establish a complete marketing channel and a huge after-sales maintenance network, so the reputation of the product is affected to a certain extent.
In addition, there are barriers to market access. Zou Xiaobing, deputy general manager of China Medicines & Health Products Co., Ltd., said that the international market has increasingly higher requirements for the quality and service of medical device products, and the medical device regulations and requirements of various countries have become increasingly strict and convergent. For example, the European Commission issued audit and evaluation recommendations in the field of medical devices in 2013, and conducted unannounced inspections of manufacturers and their suppliers, that is, audits of companies without prior notice to confirm the company’s compliance and continued compliance with regulations Sexual compliance. For another example, Iran, Sri Lanka, Egypt, Brazil and other countries require that the installed capacity of developed countries exceeds a certain number or the US FDA certification can start the registration process.
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