China’s Five-Year Plan for Medtech Industry: Best Is Yet to Come

On 19 January 2012, the Chinese Ministry of Industry and Information Technology (MIIT) unveiled a new Five-Year Plan for the Development of the Pharmaceutical and Medical Device Industries. This plan sets forth key objectives related to government investment in the pharmaceutical and medical device sectors. Maintaining robust growth, promoting innovation, improving quality and safety, safeguarding the supply of essential drugs and increasing international competitiveness are the primary goals.

February 8, 2012

2 Min Read
China’s Five-Year Plan for Medtech Industry: Best Is Yet to Come

On 19 January 2012, the Chinese Ministry of Industry and Information Technology (MIIT) unveiled a new Five-Year Plan for the Development of the Pharmaceutical and Medical Device Industries. This plan sets forth key objectives related to government investment in the pharmaceutical and medical device sectors. Maintaining robust growth, promoting innovation, improving quality and safety, safeguarding the supply of essential drugs and increasing international competitiveness are the primary goals. Here are some highlights from the new five-year plan:


•    MIIT aims to increase the gross industrial output of its drug and medical device industries by 20% annually. It wants to see more than five domestic companies achieve global sales of US$8 billion by 2015.

•    MIIT has pledged to spur development of more than 50 medical devices.

•    Green development objectives are promoted for the pharmaceutical and medical device industries.

•    The ministry seeks to improve communication of industry information and promote precision and the use of information technologies in the development of devices.


These objectives mesh with a recent report published by the China Commerce Research Center. In 2012 China Medical Device Market Trend Observations and Predictions, the authors note that the medical device industry has great potential in China and that it will maintain its rapid rate of growth in the years ahead. The report predicts that the compound growth rate for the medical device industry will be kept at 20% to 30%, largely driven by a growing middle class, an increased standard of living and incentives and reforms coming from the public sector. Clearly, the best is yet to come for China’s medical device industry.

The report also reveals that medical devices account for approximately 42% of the combined global market for drugs and devices, and that the market share for devices will continue to increase. Given that the global medical device market is projected to grow 4% to 6% per annum, China’s medical market has tremendous potential and continues to be very attractive to manufacturers.

In 2010, the total output of the Chinese medical device industry was valued at more than 100 billion RMB—a record—and Chinese factories were the most productive in the world in several medical product categories.

A growing market brings not only more opportunities for local manufacturers but also benefits foreign manufacturers of medical products and services. In particular, as disclosed by the 2011 Annual Report on China’s Medical Industry published by Frost & Sullivan, medical imaging, patient monitoring, IVD technology, and high-value consumables are high-growth sectors that deserve the attention of global manufacturers.

Helen Zhang, Associate Editor, CMDM

 

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