Official release: Support for these medical devices from next year (attached list)

The road of localization of foreign-funded machinery enterprises has been continued to be broadened.

01   The state has issued the Catalogue of Encouragement to support the foreign-funded medical industry

On October 28, with the consent of The State Council, the National Development and Reform Commission and the Ministry of Commerce publicly issued Order 52, the full text of the Catalogue of Industries to Encourage Foreign Investment (2022 edition) (hereinafter referred to as the Catalogue of Encouragement ), which will come into force on January 1, 2023.

According to the National Development and Reform Commission (NDRC), this revision will further expand the scope of encouraging foreign investment in accordance with the principle of “increasing the total amount and optimizing the structure” while keeping the existing encouraging policies basically stable.

The new edition of the Encouragement Catalogue has 1474 entries in total, with a net increase of 239 entries and 167 amendments compared with the 2020 edition. Among them, there are 519 national catalogues, 39 added and 85 revised; There are 955 catalogs in central and western China, with 200 added and 82 revised.

There are nearly 100 projects related to the medical industry in the “Encouragement Catalogue” (see the catalogue at the end of the article).

According to an official of the National Development and Reform Commission, the support policies for projects encouraged by foreign investment mainly include: First, for encouraged foreign investment projects, the import of self-use equipment within the total amount of investment, with the exception of Catalogue of Major Technical Equipment and Products Not Exempt from Import Duty” and Catalogue of Imported Commodities Not Exempt from Import Duty for Foreign Investment Projects, the policy of tariff exemption is implemented；Second, for foreign investment enterprises in encouraged industries in western China and Hainan Province, the tax rate will be reduced by 15%. Third, the preferential supply of land for the encouraged foreign investment industrial projects of intensive land use can be carried out at least 70% of the minimum price of the corresponding national industrial land transfer when determining the land transfer floor price.

The Catalogue includes the Catalogue of Industries to Encourage Foreign Investment in China and the Catalogue of Industries with Advantages for Foreign Investment in Central and Western Regions. Based on increasing the number of entries and optimizing the catalogue structure, the national catalogue focuses on the high-quality development of manufacturing industry and accelerates the promotion of technological iteration and upgrading. Based on taking measures in accordance with local conditions and overall consideration of local resource endowments and industrial conditions, relevant entries have been added or expanded to further optimize the regional distribution of foreign investment.

The main changes are : continue to encourage foreign investment in manufacturing. The national catalog continues to take manufacturing industry as the key direction to encourage foreign investment, improve the level of the industrial and supply chains, and add or expand relevant items such as components, parts, and equipment manufacturing.

Continuing to direct foreign investment into productive services. The national catalogue will focus on promoting the integrated development of the service and manufacturing industries, adding，or expanding items such as professional design, technical services and development. Continuously optimize the regional layout of utilizing foreign investment. Combine the comparative advantages of the labor force and special resources of each region to expand the scope of encouragement in the Central and Western Catalogue.

Recently, the state has issued a series of measures to encourage foreign investment to ensure that foreign enterprises enjoy fair treatment.

On October 25, the National Development and Reform Commission and other six departments jointly released the Several Policies and Measures on Promoting the Expansion of Foreign Investment, Stabilizing the Quantity of Foreign Investment，and Improving the Quality of Foreign Investment Focusing on the Manufacturing Industry.

It explicitly guarantees that foreign-invested enterprises enjoy equal access to national policies supporting industrial development and regional development in accordance with the law and regulations and ensures that foreign-invested enterprises enjoy equal treatment in terms of access to factors of production, qualification licensing, operation, intellectual property protection, standard setting, bidding and tendering, and government procurement.

At the same time last year, the Ministry of Finance issued a Notice on Implementing the Policy of Equal Treatment for domestic and foreign-funded Enterprises in Government Procurement Activities, stating that products produced in China by domestic and foreign-funded enterprises should not be treated differently in government procurement activities, except for procurement projects involving national security and state secrets.

02  Catalogue of the medical industry involved in the Encouragement Catalogue (incomplete statistics)

• Development of health and medical tourism

• Production and R&D of therapeutic medical and health textiles, artificial skin, absorbable suture, hernia repair materials, new dialysis membrane materials, catheters for interventional therapy, high-end functional biomedical dressings, etc.

• Optical fiber and products production: image beam and laser medical fibers, super 2nd and 3rd generation microchannel plates, optical fibre face plate, inverted image and glass light cone

• Biomedical and high-performance medical equipment

• Bearings for medical CT machines

• Manufacturing of medical imaging equipment (HIGH-field superconducting magnetic resonance imaging equipment, X-ray computed tomography imaging equipment, digital color ultrasound diagnosis equipment, etc.), medical imaging intelligent auxiliary diagnosis system and key components

• Electronic endoscope manufacturing

• Fundus camera manufacturing

• Medical ultrasonic transducer (3D) manufacturing

• Cultivation and breeding of Chinese medicinal materials

• The production of new compound drugs or active ingredient drugs (including both APIs and preparations)

• Amino acids: production of tryptophan, histidine, methionine, etc. by fermentation

• Development and production of new anticancer drugs, new cardio-cerebrovascular drugs and new nervous system drugs

• New drug production using bioengineering technology

• AIDS vaccine, hepatitis C vaccine, contraceptive vaccine and cervical cancer, malaria, hand, foot and mouth disease and other new vaccine production

• Development and production of Marine drugs

• Pharmaceutical preparation production: new dosage forms and new products using new technologies such as slow release, controlled release, targeting and transdermal absorption 91. development and production of new pharmaceutical excipients

• Production of antibacterial API for animals (including antibiotics, chemical synthesis)

• New products and new dosage forms of antimicrobials, anthelmintics, insecticides and coccidioides for animal use

• Development and production of new diagnostic reagents

• Research and development and production of cell therapy drugs (except forbidding foreign investment)

• Development, production of new key raw materials, large-scale cell culture products for use in the manufacture of vaccines, cell therapeutics, etc

• Development and production of new pharmaceutical packaging materials and technologies (neutral borosilicate medicinal glass, chemically stable and degradable, functional materials with light protection and high barrier properties, cop cyclic olefin polymer drug packaging materials, aerosols, powders, self-administration, pre- enema, auto mixing and other novel packaging drug delivery systems and drug delivery devices)

• Development and production of drugs for rare diseases and special drugs for children

• Pharmaceutical manufacturing related supplies development, production: separation and purification media, solid phase synthesis media, chiral resolution media, drug impurity control and detection supplies, etc.

• Medical ultrasonic transducer (3D) manufacturing

• Boron neutron capture therapy equipment manufacturing

• Fabrication of image-guided modulated intensity modulated radiotherapy system

• Hemodialysis machine, blood filtration mechanism

• Hemodialysis machine, blood filtration mechanism

• Manufacture of new technology and equipment for drug quality control

• New techniques for the analysis of effective substances in natural medicines, new processes for extraction, development, and manufacture of new equipment

• Biomedical supporting consumables production equipment research and development, manufacturing

• Non-pvc medical infusion bag multi-layer co-extrusion water cooled film blow molding equipment

• Artificial intelligence assisted medical equipment manufacturing

• Manufacturing of high-end radiotherapy equipment

• Manufacturing of high-end surgical instruments, physical therapy and rehabilitation equipment, wearable intelligent health equipment

• Critical illness with life support equipment manufacturing

• Minimally invasive surgical medical device development and production: 3D imaging, electron microscopy systems, surgical robots, robotic arms, hearing aids and cochlear implants, etc

• Research, development and production of holmium laser and carbon dioxide laser treatment products

• New stents, prostheses and other high-end implant interventional devices and materials and additive manufacturing technology development and applications emergency rescue equipment manufacturing

• Centralized clinical waste disposal facility

• Intelligent emergency medical rescue equipment manufacturing

• Wearable smart devices

• R & D, manufacturing of smart health nursing products (manufacturing of aged goods and auxiliary products, manufacturing of aged medical devices and rehabilitation aids, manufacturing of aged smart and wearable devices, etc.)

• Online education, online medical, online office system development ,and application services

• Bioengineering and biomedical engineering technology, biomass energy development technology research and development

• Research and development of DNA encoded compound library technology

• Veterinary and pet nutrition scientific research and technical services

• Intelligent devices, robots, neural network chips, neuronal sensors and other artificial intelligence technology research and development and application

• Service agencies for persons with disabilities and children (except child welfare agencies, rescue and protection agencies for minors, and adoption registration agencies)

• Elderly care services (including home-based community care services, institutional care services, and the construction and operation of nursing institutions and community care services, etc.)

• Medical Institutions

• Mental rehabilitation institution

• psychological consultancy organization

• Rehabilitation Institute for autistic children

• Aged care service -related professional education, aged care service skills training, family care skills training, aged education

• Production and processing of new medical equipment and medical materials

• Deep processing of natural medicines, APIs ，and Chinese patent medicine (excluding secret prescriptions)

• Sand industries such as sand traditional Chinese medicine, eco-economic forest, melon and fruit, facility agriculture, sand building materials, new energy and desert tourism and leisure in sand area.

• Animal and plant medicinal material resource development, conservation， and sustainable use: the construction of the cultivation base of medicinal herbs and characteristic Mongolian herbs, Inner Mongolia, the construction of an endangered medicinal plant conservation base, the construction of a seed seeded seedling base, and the construction of a R & D Center for the extraction plant of medicinal herbs Inner Mongolia

• Research and development of Mongolian medicine and Mongolian medical equipment

• Biopharmaceutical technology development, production, natural medicines, crude drugs, deep processing of Chinese patent drugs (excluding wading prescriptions)

• Production and processing of new medical equipment and medical materials

• Digital medical system, community care, personal health maintenance related product development and application

• Development and production of medical equipment and key components

• Research, development and production of epidemic prevention and protection products and their production equipment

• Production and processing of new medical equipment and medical materials

• Biomedical technology research and development, production

• Laser medical equipment development and manufacturing

• Comprehensive utilization of waste gas, waste liquid and waste residue of pharmaceutical and chemical raw materials

• Development of health and medical tourism

• Research and development of biopharmaceutical technology and production of biological drugs, development and production of generic drugs that have passed the consistency evaluation of quality and efficacy of generic drugs

• Research and development and manufacture of medical instruments and equipment, instruments and sanitary materials, medical supplies and pharmaceutical excipients production and processing of new medical equipment and medical materials, especially the research and development and production of medical instruments and equipment with independent intellectual property rights

• Medical equipment outsourcing services (contract research organization CRO, medical production outsourcing CDMO)

• Pharmaceutical consulting

• Medical equipment, business jet, new energy vehicle leasing and maintenance services

• High-end professional medical care, rehabilitation, nursing and other medical and health services

• High-end medical equipment, biomedical manufacturing

• Used in industrial, medical, electronic, aerospace and other fields of special ceramic production and technology, equipment development, Ceramic clean production and integrated utilization technology development

• R & d and production of new chemoradiotherapy, medical robots, new digital medical imaging equipment and other high-end diagnosis and treatment equipment

• Development, production of medical and rehabilitation devices, equipment ,and critical components

• Health consulting, health management, medical knowledge, and other medical information services

• Health and wellness tourism development

• Biomedicine and pharmaceutical intermediates, biologics R & D, production

• 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 Saibailan Instrument

   Translated & edited  | Bradyknows