Currently, China’s population is over 1.4 billion, which translates directly into a huge need for access to healthcare. In 2019, the number of medical facilities exceeded one million in the Middle Kingdom, of which 35,000 centres were defined as hospitals. At that time, all hospital beds could accommodate 9 million patients cared for by 13 million healthcare professionals[1]. Today, one can only assume that due to the coronavirus pandemic and the “Healthy China 2030” plan announced in 2016, these numbers have skyrocketed. It is estimated that by 2030, the Chinese healthcare market will have reached a staggering value of USD 2.4 trillion[2]. Such high demand for medical equipment will require an increase in the share of exports from foreign companies. Medical equipment manufacturers are already competing with domestic producers in terms of quality, safety and innovation. So what does the medical market in China look like and what is the share of Polish capital in it? Let’s start from the beginning.
Exported medical equipment is conquering China
The result of China’s economic development is a gradual increase in the number of people using medical services. Since the mid-1990s, the population has increased by some 400 million[3]. Demographic problems — such as the ageing of the population, result in an increase in the incidence of chronic diseases. It is estimated that there will be around 223 million people over 65 years of age in China in 2030. The unhygienic lifestyle, lack of physical activity and junk food contribute to obesity, diabetes, heart diseases and cancer. For example, in this country alone, the number of people suffering from diabetes has already exceeded 90 million[4].
Polish accents in Chinese hospitals
These and many other factors force an increase in demand for medical services, which are only partially satisfied at the internal level. The mass-care-oriented primary care system includes facilities with a high demand for low-quality medical equipment. At the same time, however, there are high-class clinical hospitals that supply only the highest quality products. By the end of 2020, in China, there were approximately 24,000 private hospitals[5]. It is in these facilities, and not only, Polish medical devices, which are treated as premium products in China, are more and more often found. Polish operating tables, hospital beds, delivery beds, patient transport trolleys or gynaecological chairs are appreciated by physicians in the Middle Kingdom.
Hospital beds from Famed Żywiec, a Polish manufacturer of medical equipment, are more eagerly purchased by Chinese contractors.
High-quality equipment sought after by Chinese contractors
According to a report published by the General Administration of Customs of China (GACC) in 2021, goods with a total value of more than USD 5.5 billion flowed from Poland to China, an increase of nearly 29% compared to the previous year[6]. The value of specialised equipment from Poland (including medical equipment) exceeded USD 160 million[7]. And even though the share of Polish exports in the Middle Kingdom is increasing every year, it is not easy to gain the trust of the Chinese – especially in the medical industry.
Polarised medical market
— China is a difficult market characterised by a very high entry barrier in the form of, for example, expensive and long-term certification of medical equipment by The National Medical Products Administration (NMPA, previously CFDA). The competition is immense, both in the form of major global players and many local companies. As a result, the market is polarised between premium medical equipment and locally manufactured operating tables or hospital beds. Chinese customers are very demanding – they are willing to pay a lot for the ordered medical equipment, but they expect the highest quality products and service in return. At the same time, one of the issues of the system remains the shortage of medical equipment service. The problem is that some Chinese manufacturers offer cheap medical equipment with a short and expensive operating period. They are there today, tomorrow they are gone, and if the hospital needs to use the service, it is left without support. The guarantee of certainty offered by a recognised manufacturer of medical equipment such as Famed means that customers are willing to pay even several times more for the equipment – says Marek Suczyk, Vice President of Famed Żywiec..
Polish medical equipment a premium product
Famed Żywiec is the only Polish manufacturer of medical equipment that exports its operating tables and hospital beds to China. The cooperation, initiated in 2004, led to the establishment of FAMBeijing Medical Technology, a thriving company in Beijing, which distributes this manufacturer’s medical equipment in the Middle Kingdom. The cooperation has resulted in the trust of several hundred hospitals in more than 30 Chinese provinces, municipalities and autonomous regions.
— Thanks to advanced technology and excellent quality, the medical equipment from Famed Żywiec is recommended by such institutions as: Peking Union Medical College Hospital, Xuanwu Hospital Capital, Medical University, Tiantan Hospital Capital, Medical University. We are convinced that the medical equipment from Famed Żywiec has great potential when it comes to the Chinese market as more and more hospitals want and will use the products of the Polish brand – says Huang Jing, the President of FAMBeiJing Medical Technology.
Opportunities and challenges
Currently, China is one of the most promising markets in the world’s healthcare industry, and yet it is very competitive. The government’s preferential treatment of Chinese manufacturers can be both an opportunity and a threat to foreign companies. The needs are so great that there is room on the market for both those who compete with others on a price basis and those whose products are appreciated for their quality and functionality.
Sources:
[1] https://agora.mfa.gr/infofiles/The%20Healthcare%20Market%20in%20China%20-%202021%20cn.pdf
[3] http://www.medexpress.pl/biznes/rynek-wyrobow-medycznych-na-swiecie/41791/
[4] https://www.chinskiraport.pl/blog/opieka-zdrowotna-inwestycje-w-chinach/
[5] http://www.stats.gov.cn/tjsj/zxfb/202102/t20210227_1814154.html
[6] https://forsal.pl/swiat/chiny/artykuly/8341662,handel-chin-swiat-eksport-import-polska-dane-2021.ht
[7] Dane z: Rynki zagraniczne – przegląd wybranych gospodarek, Departament Strategii i Promocji Gospodarczej Centrum Eksportu oraz Zagraniczne Biura Handlowe PAIH
