China's Medical Device Import and Export Breaks 20 Billion U.S. Dollars in 2010

The business club reported on March 1. In 2010, the total import and export volume of medical equipment in China rose strongly, surpassing the $20 billion mark for the first time, marking a successful conclusion for China's "Eleventh Five-Year Plan." It is worth noting that China’s medical device import and export scale has soared from US$10 billion to US$20 billion in only five years (see Figure 1). According to statistics compiled by the Medicare Chamber of Commerce, the total import and export of medical devices in China reached US$22.656 billion in 2010, a year-on-year increase of 23.47%. Among them, the export value was 14.699 billion US dollars, an increase of 20.05%; the import amount was 7.957 billion US dollars, an increase of 30.35%. Both the export volume and the import volume hit a record high. The import growth rate was 10.3 percentage points higher than the export growth rate. Overall, China's foreign trade in medical devices continued to maintain a large surplus in 2010, with a cumulative trade surplus of US$6.742 billion.


International dependence on export growth

At present, the global pharmaceutical and medical device consumption ratio is about 10:7, while developed countries such as Europe, America and Japan have reached 1:1.02, and the global medical device market has occupied 42% of the total size of the international pharmaceutical market, and has expanded. The total output value of China's medical device industry exceeded 100 billion yuan for the first time in 2010, and the production scale of many medical device products ranks first in the world.

In 2010, the average monthly export value of China's medical device products was US$1.225 billion. In November and December, the export value exceeded US$1.4 billion (see Figure 2), indicating that the international market has become increasingly dependent on China's medical device products. . All these factors have created favorable conditions for the rapid development of China's medical equipment exports. In 2010, there were 24,600 enterprises exporting medical device products nationwide, an increase of 8.55% compared with the same period of last year. The top 200 enterprises ranked in export value accounted for 45.21% of the total export volume of medical devices, and the degree of concentration was relatively high. Exports have become the development of the medical device industry in China. The important driving force. Although the export market for medical devices continues to expand, domestic medical device manufacturers generally have lower technological content. Among the top 10 export companies, there are 7 foreign investment and joint ventures (see Table 1). Looking at the composition of the company, foreign investment and joint ventures are the main force for domestic medical device exports.


1. U.S., Japan, and Germany account for more than 40% of exports

In 2010, China's medical equipment was exported to 216 countries and regions. Asia, Europe, and North America are still the major export markets for medical devices in China. The corresponding export value is 4.895 billion U.S. dollars, 3.915 billion U.S. dollars, and 4.257 billion U.S. dollars, respectively. The proportion is as high as 89.13%. Exports to the Asian market increased by 13.65% year-on-year, which was affected by the “zero tariff” in the China-ASEAN Free Trade Area, and its exports to ASEAN increased by a large margin by 47.36% year-on-year. Market exports to Europe and North America increased by 18.43% and 24.31% respectively year-on-year. The development of the African market has achieved good results, with the export value of 529 million U.S. dollars, a year-on-year increase of 41.7%. The United States, Japan, and Germany are the top three markets for traditional medical device export in China (see Table 2). In 2010, the share of the three countries reached 43.95%.


US Market In 2010, the amount of medical equipment exported to the US market was US$4.057 billion, which was a year-on-year increase of 24.57%, accounting for 27.6% of China's medical device export volume over the same period. The top five products exported to the U.S. market are: eyeglasses and other items not listed for vision, eye protection, etc.; X-ray contrast agents, diagnostic reagents for patients; other medical, surgical or veterinary instruments And appliances; massage equipment and cotton wool, gauze, bandages. The proportion of the total amount of medical equipment exported to the United States market was 23.15%. In 2010, a total of 8391 companies operating medical equipment were exported to the United States market, up 14.6% year-on-year. General Electric (Shanghai) Co., Ltd., Jabil (Shanghai) Co., Ltd., Shenzhen Baoan Foreign Economic Development Co., Ltd., and Shijiazhuang Xin Rubber Products Co., Ltd. and Xiamen Mengfali Technology (Group) Co., Ltd. listed the top 5 in the amount of medical equipment exported to the United States market, accounting for 11.53% of the total.

Japanese Market In 2010, the amount of medical equipment exported to the Japanese market was 1.528 billion U.S. dollars, a year-on-year decrease of 11.62%, accounting for 10.4% of China's medical device export volume over the same period. The top five products for export to the Japanese market are: massage equipment; other needles, catheters, cannulas, and the like; X-ray generators, etc.; inspection furniture, etc.; cotton wool, gauze, bandages, and unlisted vision correction Eyeglasses and other objects used for eye protection, eye protection, and other purposes. The proportion of the total amount of medical equipment exported to the Japanese market reached 40.41%. In 2010, a total of 4573 companies operating medical equipment were exported to the Japanese market, which was a decrease of 7.91% year-on-year. Termao Medical Products (Hangzhou) Co., Ltd., Omron (Dalian) Co., Ltd., Dalian Ailisi Daily Goods Co., Ltd., Toshiba Dalian Co., Ltd. And Xiamen Mengfali Technology (Group) Co., Ltd. ranked the top 5 in the amount of medical equipment exported to the Japanese market, accounting for 17.72%.

German Market In 2010, the amount of medical equipment exported to the German market by China was US$875 million, a year-on-year increase of 15.15%, accounting for 5.95% of China’s medical device exports during the same period. The top five products for export to the German market are: massage devices; cotton wool, gauze, bandages; weight scales, including baby scales, household scales; other needles, catheters, cannulas and similar products and X-ray generators, etc. Check furniture. Accounted for 28.21% of the total amount of medical equipment exported to the German market. In 2010, a total of 4469 companies operating medical equipment were exported to the German market, up 14.3% year-on-year. Shanghai Siemens Medical Devices Co., Ltd., Shanghai Draeger Medical Devices Co., Ltd., Kleinenko Medical Devices (Nanchang) Co., Ltd., and Paulaman (Qingdao) Medical Equipment Co., Ltd. and General Electric Medical Systems (China) Co., Ltd. listed the top 5 in the amount of medical devices exported to the German market, which accounted for 14.97% of the total.

2. Medical dressing is still the bulk of exports

In 2010, China's medical device export products ranked in the top three, one is cotton wool, gauze, bandages, gauze rolls (pile), Masks, etc.; second is massage equipment; third is corrected vision (protective eye) supplies. The total share is 23.38%. The products with an export increase of more than 50% were: 424.24% of medical medical vehicles, 218.71% of medical equipment for alpha, beta, and gamma rays, 101.24% of blood transfusion equipment, 86.4% of ECG recorders, 83.93% of artificial joints, orthopaedics Or the equipment used for fractures increased by 50.44%, and the first aid kits and medicine packs increased by 50.26%. The key monitoring product export situation is shown in Table 3.

Cotton wool, gauze, and bandages In 2010, the export value of cotton wool, gauze, and bandage was US$658 million, an increase of 10.07% over the same period of last year; the average export unit price was US$5.8/kg, an increase of 10.51% over the same period of last year. In 2010, cotton wool, gauze and bandages were exported to 182 countries and regions. The major export markets were the United States, Japan, Germany, Belgium and Italy, accounting for 51.12% of the total. Except for exports to Japan and Italy which fell by 2.63% and 4.03% respectively year-on-year, exports to other three major markets showed varying degrees of growth. In 2010, a total of 2340 enterprises across the country operated exports of this type of products. The top 3 companies in the export category were: Jianjian Industrial (Shenzhen) Co., Ltd., Shaoxing Zhende Medical Dressing Co., Ltd. and Shenzhen Omeidi Trade Development Co., Ltd. 21.28%.

The disposable syringes in 2010 registered a US$332 million worth of disposable syringes, a year-on-year increase of 20.4%; the average export unit price was US$0.04/branch, an increase of 7.55% year-on-year. In 2010, the syringes were exported to 171 countries and regions. The major export markets were the United States, Germany, Russia, Brazil and Italy, accounting for 36.89% of the total. The US market alone accounted for 20.11%. As Brazil imposed anti-dumping duties on disposable syringes produced in China, the volume of exports to Brazil dropped sharply by 49.24%, while exports to other four major markets showed varying degrees of growth. In particular, exports to Italy increased sharply by 69.7% year-on-year. . In 2010, a total of 842 enterprises across the country operated exports of this type of products. Flextronics Industrial (Shenzhen) Co., Ltd., Novo Nordisk (China) Pharmaceutical Co., Ltd. and Jiangsu Kanghua Medical Equipment Co., Ltd. listed the top 3 disposable syringe export value rankings. This accounted for 29.65% of the total.

Color Ultrasound Diagnostics In 2010, the export value of color ultrasonic diagnostic instruments was 274 million U.S. dollars, an increase of 37.27% year-on-year, and the average export unit price was 16,700 U.S. dollars per unit, an increase of 4.93% year-on-year. In 2010, the color ultrasonic diagnostic apparatus was exported to 136 countries and regions. The major export markets were the United States, the Netherlands, Germany, India and Japan, accounting for 53.72% of the total. Except for the 9.79% decrease in Japan’s exports, the other four markets The export volume has increased significantly year-on-year, especially the exports to the United States and India have increased by 99.57% and 63.29% respectively year-on-year. In 2010, a total of 78 companies throughout the country operated the export of this product. General Electric Medical Systems (China) Co., Ltd., Shenzhen Mindray Biomedical Electronics Co., Ltd. and Neusoft Philips Medical Equipment Systems Co., Ltd. took the top 3 in terms of export value. Accounted for as high as 63.92%, accounting for half of the country's exports.


Strong domestic demand to pull imports

The strong growth of China's medical equipment imports in 2010 indicates that domestic demand in the medical and health field in China is still robust. At the same time, it also stimulated the rapid growth of medical equipment exports from other economies in the world and contributed to the development of the world's medical device trade.

In 2010, China imported medical devices from 116 countries and regions. Europe is the largest import market for medical devices, accounting for 38.49%. The United States, Germany, and Japan are the traditional three major trading partners for medical device imports in China. The U.S. accounted for 29.96% of the total, Germany accounted for 17.45%, and Japan accounted for 16.48%.

In 2010, there were a total of 11,700 companies operating medical equipment imports nationwide, an increase of 10.34% year-on-year. Among them, Medtronic Medical Products Technology Services (Shanghai) Co., Ltd., Shanghai Sankai Import & Export Co., Ltd., Shanghai Dongsong International Trade Co., Ltd., Shanghai Xiegu Import & Export Trade Co., Ltd., and Can Teng International Trade (Shanghai) Co., Ltd. are ranked in the medical sector. The top five rankings for the import amount of equipment, accounting for 7.92%.

In 2010, China’s imports of medical devices worth US$200 million included imports of other medical, surgical or veterinary X-ray equipment at US$611 million, an increase of 22.29% year-on-year, and US$583 million of color ultrasonic diagnostics imports. 26.23%; other medical equipment used to wear or implanted human body to compensate for physical defects imported 544 million US dollars, an increase of 39.59%; X-ray fault detector import 503 million US dollars, an increase of 44.66%; other medical, surgical or veterinary equipment and Utilities imported 501 million U.S. dollars, an increase of 27.66% year-on-year; other needles, catheters, cannulae, and similar products imported 440 million U.S. dollars, an increase of 23.54% year-on-year; X-ray generators, inspection furniture, etc. imported 436 million U.S. dollars, an increase of 25.77% year-on-year; MRI imaging equipment imported 430 million US dollars, an increase of 54.23%; use of optical ray spectrophotometer, spectrophotometer and spectrograph import 354 million US dollars, an increase of 25.53%; endoscope import 222 million US dollars, an increase of 31.45% .

Trade surplus or shrinking in 2011

In general, the growth rate of China's medical device import and export has basically recovered to the level before the international financial crisis in 2010, but the imbalance in medical equipment import and export trade is still prominent. Looking ahead to 2011, under the influence of the scarcity of worldwide resources and domestic inflation expectations, raw and auxiliary materials and power prices for grain, cotton, chemical products, water, electricity, gas, etc. will all show upward momentum, which will lead to the disruption of production activities of some enterprises. Timely delivery to foreign customers. The cost of labor for some enterprises has generally increased by 10% to 20%. This will also cause some international orders to shift to countries and regions such as ASEAN where labor costs are lower. For China's medical device companies, which are generally settled in U.S. dollars, due to their long-term dependence on exchange rate spreads and their generally small profit margins, the continued appreciation of the renminbi will undoubtedly bring greater losses. Future industry competition and export quotation The risk will be higher. At the same time, the expansion of imports will be the focus of China's medical device import and export trade in 2011, and the country will introduce some policy measures to encourage imports.

The author believes that if China's medical device products can maintain the current international market share and expand in 2011, the annual export is expected to achieve 15% growth, the growth rate of imports will be higher than exports, and the trade surplus is expected to shrink. It is estimated that the total import and export of medical devices in China will exceed 25 billion U.S. dollars in 2011.

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