Blockbuster! Six ministries issued a joint document, concerning all the equipment enterprises!
Six ministries issued a document, concerning all foreign enterprises
Recently, six departments, including the National Development and Reform Commission and the Ministry of Commerce, jointly issued the Several Policies and Measures on Promoting the Expansion of Foreign Investment, Stabilizing the Quantity， and Improving the Quality of Foreign Investment Focusing on the Manufacturing Industry (hereinafter referred to as the “Measures”) to further increase the investment attraction in the manufacturing industry.
The document points out that in order to give better play to the role of foreign capital in promoting the high-quality development of China’s manufacturing industry, it is necessary to optimize the investment environment, expand the increase of foreign investment, strengthen investment services, stabilize the stock of foreign investment, and guide the direction of investment. improve the quality of foreign investment.
The medical sector is also specifically mentioned, with investment promotion activities such as investment matching to be held for key industrial chains such as medical, semiconductor and chemical energy.
In the past two years, the state has issued several relevant documents to encourage foreign investors to invest in the domestic medical field.
Last year, the Ministry of Finance issued the Notice on the Implementation of Policies on Equal Treatment of Domestic and Foreign funded Enterprises in Government Procurement, stating that products produced in China, regardless of whether their suppliers are domestic or foreign-funded enterprises, should guarantee their equal rights to participate in government procurement activities according to law.
Since then, many departments have jointly issued the Notice on Adjusting the Catalogue of Major Technical Equipment Import Tax Policies. If certain “sales performance requirements” are met, tax exemption qualification can be applied for.
For the medical field, on the one hand, it means that the country attaches great importance to the medical industry; On the other hand, this also expands the definition of “domestic medical equipment” from products produced by local brands in China to products produced by multinational enterprises in China.
Many foreign mechanical enterprises have moved their industrial lines into China to become “Made in China”, so as to pry open the door of hospitals “as long as they are domestic”
The entry of foreign machinery enterprises has also brought great changes to China’s medical market. And does all this make the relevant policies that the country has previously encouraged domestic production “lose their effect”? Many industry people have raised such concerns.
Foreign mechanical enterprises accelerate the “localization”, and the advantages of local mechanical enterprises are no longer?
In fact, while the policy encourages foreign-funded enterprises to invest and build factories in China, the state has not stopped actively supporting domestic brands.
A series of “import restrictions” policies have been introduced to examine and approve the admission of imported brands further strictly.
In 2021, the Guidance Standard for the Examination of Imported Products of Government Procurement (2021 Edition) jointly issued by the Ministry of Finance and the Ministry of Industry and Information Technology was released, and 137 kinds of medical devices were required to be purchased domestically.
Obviously, the fact that the state continues to bring foreign capital into the domestic medical equipment market does not mean that the country has shifted from supporting domestic products to “supporting imports”.
However, in the medical equipment industry, innovation and technology communication play a crucial role. Therefore, the introduction of more foreign high-end technical equipment plays a positive role in the development of the local medical industry.
The arrival of foreign enterprises will not give us their most confidential core technologies, but the “catfish effect” they have generated will promote the benign competition of domestic enterprises, thus further promoting the progress of the technology level of local mechanical enterprises. Therefore, only by opening the country can we bring new vitality to the medical field.
The arrival of foreign enterprises will not give us their most confidential core technologies, but the “catfish effect” they have generated will promote the benign competition of domestic enterprises, thus further promoting the progress of the technology level of local mechanical enterprises. Therefore, only by opening the country can we bring new vitality to the medical field.
Today, China’s medical device market is undergoing fundamental changes. Some analysts said, “The market segmentation of lower price has been occupied by domestic brands, and foreign enterprises will rely more on sophisticated things to survive in China in the future.”
At present, the growth of domestic equipment is mainly in the middle and low-end models, mostly from third and fourth-tier cities. However, driven by policy, more and more county hospitals are beginning to upgrade and equipment standards are being raised, with a large amount of demand for high-end medical equipment purchases appearing at the grassroots level.
Import vs. domestic, the competition pattern is set
Therefore, the state once emphasized that it is necessary to speed up the supplement of China’s high-end medical equipment weaknesses, speed up the research on key core technologies, break through the bottleneck of technical equipment, and achieve the autonomy and controllability of high-end medical equipment. This also further clarifies the product technology development direction of medical devices in China.
For example, in the field of innovative medical devices, the Chinese government has issued strong policies many times to focus on improving the innovation ability and industrialization level of medical devices.
A few days ago, National Healthcare Security Administration made it clear that “innovative medical devices will not be included in collection for the time being,” and that a certain market should be set aside to provide space for innovative products to open the market. Heilongjiang Province has also issued the latest policy, opening a “green channel” for innovative medical equipment.
Under this, the technical level of medical devices in our country has been significantly improved.
The “localization” of foreign-funded equipment enterprises will indeed intensify competition within a period , making the domestic price advantage no longer exist, but in the long run, with the inflow of a large number of sophisticated technologies and the training of talents from large foreign-funded enterprises, will eventually feed the domestic market.
China is encouraging China end uses for more domestic products in latest years. Thus, more and more overseas manufacturers are planning localization in China. BradyKnows localization team has extensive experiences in facility establishment, audit, supplier evaluation, manufacturing, registration, and marketing in China. Pls feel free to let us know any questions on China entry via info@bradyknowsmedical.com
By Alliance of Medical Device Distributors
Translated & edited | Bradyknows
