Medical equipment companies encounter technology brand "double anemia"
Release date: 2007-08-17 Chinese medical device companies are facing a "double anemia" challenge, caught between the lack of core technology and weak brand identity. Despite the rapid growth of China's medical equipment market in recent years, the industry still struggles with limited domestic output—accounting for only around 2% of the global total. While the market is seen as one of the most promising globally, many local firms have remained stagnant, pressured by foreign competitors and unable to establish strong, independent brands.
According to forecasts from leading institutions, the Chinese medical equipment market is expected to grow at an annual rate of about 14%, with high-end equipment sales rising even faster—up to 20% per year. Industry experts estimate that this year alone, medical equipment sales could reach 40 billion yuan, with the overall market size expanding to between 50 and 55 billion yuan.
Despite such positive projections, foreign capital and joint ventures dominate the industry. In the top 10 domestic medical device companies, seven are either foreign-owned or joint ventures. Among the top 50, foreign and joint venture enterprises control more than half of the revenue and profits. This dominance has made it difficult for local firms to gain traction.
At a recent seminar on the current status and development of China’s medical equipment industry, experts highlighted the challenges faced by domestic companies, particularly in areas like diagnostic equipment. Most large-scale medical testing equipment relies on European and American imports, with many Chinese firms only acting as agents. This arrangement leaves them dependent on foreign suppliers, without access to core technology or brand ownership.
As a result, these companies face unstable supply chains, pricing control, and restrictive cooperation terms. Some agents are forced to accept unreasonable demands from foreign partners, which further intensifies competition among domestic players. With no strong R&D capabilities or independent brands, Chinese firms often compete at the lower end of the value chain.
Industry insiders note that China’s medical device sector started late, operates on a small scale, and lacks concentrated investment. As a result, it struggles to compete with global giants. However, there are signs of progress. Some companies are making significant efforts to innovate, increasing R&D spending and acquiring foreign technology and brands.
For example, Shenzhen Saile, one of China's largest enzyme-free equipment service providers, has successfully transformed itself into a major player. Through strategic equity swaps and acquisitions, it became the majority shareholder of XIRIL, a leading global medical device company. This move allowed Saile to shift from a distributor to a full-service provider of laboratory automation solutions.
The journey of Chinese medical equipment companies remains challenging, but with continued innovation and strategic moves, there is hope for a stronger and more independent industry in the future. —— Source: Shanghai Medical Device Industry Association Network Veterinary drugs constitute a large group of compounds, it includes antibiotics, anthelmintics, hormones and nonsteroidal antiinflammatory drugs (NSAIDs) among others. They are used to treat sick animals but also as growth promoters in healthy individuals New Animal Drug;Veterinary Products;Veterinary Medicine;Veterinary Medicine Drugs,Veterinary Drug Material Taizhou Volsen Chemical Co., Ltd. , https://www.volsenchem.com