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        The Medical Device Export of Private Enterprises Five Times More Than That of State-owned Enterprises

        Number of visits: Date:Oct 29,2014

          In the 6th China Medical Device Development Forum, Cai Tianzhi, secretary general of China Chamber of Commerce of Medicines & Health Products Importers & Exporter, pointed out in his report that in the first half year of 2014, the export aggregate of medical devices reached RMB 9.294 billion, including RMB 726 million from state-owned enterprises and RMB 3.801 billion from private enterprises. The export amount of private medical device enterprises is equivalent to five times that of state-owned enterprises. Bai Yu, Chairman of Medical Device Sub-association, China Medical Pharmaceutical Material Association, and Chairman, Beijing KFZJ Medical Devices Chain Operation Co., Ltd., told correspondents that the reason why state-owned enterprises’ export is low and development lags is because they rest on the past achievements, lag in technology and outflow of talent.
          It was reported that the state-owned enterprise export covered 7.8% of aggregate while private enterprise 40.9%, foreign-funded enterprise 51.3%, with export amount of RMB 4.746 billion. Bai Yu considered state-owned medical device enterprises lagged in technology and export depended on private order from overseas government and not eager to develop market over twenty years. Due to problems of system, a large number of excellent talent out flowed. In case of connecting with overseas market, they lack high-end international talent from marketing to R&D, which all caused state-owned medical device export less than private enterprises.
          According to information, private medical device export to top regions: America, Germany, Russia, Hong Kong and UK. Speaking of the reason of rapid private medical device export, Bai Yu said, “Our private enterprises have certain advantages in manufacturing export medical devices, with low product and human resources costs, domestic private medical device enterprises have a smooth communication with overseas through attending international exhibitions in China, North America and the Middle East.” It is said that Newsound Technology Co., Ltd. is a private enterprise and its main business is R&D, production and sale of high-tech hearing aids. Yu Shihu, GM from Newsound expressed, “The overseas sale volume of hearing aids in 2013 was RMB 40 million, because digital industry is an emerging industry needs outstanding technology to stand out rather than many years of branding cultural accumulation as traditional enterprises. In comparison with overseas technology costs, Newsound’s price is lower than that of foreign similar products, which is the reason why these products are acceptable for European and American countries.””
          Accordingly, Chinese state-owned medical device enterprises have strong homogeneous competition, shortage of high-end and complex talent, low integrated technology level, lagged development and slow product update. In face of current conditions of domestic medical devices, our country unveiled a series of encouragement policies to advance Class 3 Grade A hospital purchase domestic medical devices, “This is a great opportunity and domestic medical devices will welcome a golden age in the following ten years”. Bai Yu said, “Currently, overseas and domestic sales ratio of medical devices of KFZJ Chain has been grown to 6:4 from original 7:3 and this ratio will be balanced within three years.”
          Cai Tianzhi considered that the following five to ten years will be a rapid development period for China’s medical device industry, while manufacturing industry as a basis for the medical device industry development has establishes a complete product system through accumulation and a vital position in middle and low-end products. Medical devices from developing countries will be still the major import origin of developed countries. For both state-owned and private enterprises, there is a very large market space of medical device export in China.

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