Foreign investors hampered in China's med tech sector

 14-Aug-15, Plasteurope 

China’s health system is under massive pressure to reform and expand. There is huge demand for new hospitals, which require foreign know-how and private investors to provide the latest in design and management as well as medical engineering equipment.

According to government stipulations, the foreign share in medical joint ventures and partnerships is not allowed to exceed 70%. However, the sector’s openness to foreign capital is constantly in flux, reports Germany Trade and Invest.

Image: PolyOne

Depending on which data is taken into account, the Chinese health segment occupies rank two or three in the world, gtai reports. In the coming years the country’s medical engineering sector is expected to grow at a rate exceeding that of the global market.

But market experts predict that foreign imports will have an increasingly tough time penetrating the local market. Aside from initial signs of saturation in the high-end medical engineering segment, the "buy local" requirements stipulated by state-owned hospitals, higher and more expensive registration requirements as well as a rapidly growing local competition could slow the segment’s dynamic development.

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