• Vikcess Business Group

Chinese medical device procurement regulations are strengthening? It's time to revisit your strategy

Chinese medical device procurement regulations are strengthening, driving international companies to explore multiple strategies.

These stricter procurement regulations of imported medical equipment in several Chinese regions, will force international companies to rethink their China strategies, to contemplate cooperations and joint ventures with Chinese companies.

Recently, the Office of the Shaanxi Provincial Health Commission issued regulations on government procurement of imported products, which shows that the review of procurement of imported products for medical purposes will be more stringent.

Official confirmation of further restrictions of the purchase of imported medical devices

Government procured imported products needs to implement the five steps of " declaration, expert demonstration, online publicity, departmental centralized demonstration, and financial approval execution". After all of them are passed, and there is no objection publicly on the government website for 5 working days, the hospitals can choose to purchase imported products.

The imported products shall meet all of the following conditions:

a. Not available in China;

b. It cannot be obtained under reasonable commercial conditions in China;

c. It is indeed necessary to purchase imported products according to laws and regulations;

d. The technical performance indicators of domestic equipment cannot meet the demand.

Obviously, if one of the above four requirements is not met, it is not allowed to be purchased.

Several provinces issued restrictions on policies as well

In 2021, Zhejiang Province, Guangdong Province, and Sichuan Province have successively released the latest "Imported Medical Devices Purchase List". Even devices on the list that are to be imported must show strong reasonable reasons. Otherwise, domestic products will be preferred. So far, there are 195 kinds of imported medical devices that can be purchased in Zhejiang Province, only 46 kinds of devices can be purchased in Guangdong Province, and 59 in Sichuan Province.

(Please contact us if you are interested in the purchase list.)

China is vigorously promoting technological innovation, increasing investment in research and development, and supporting strongly the domestic medical devices companies. For any company that wants to enter the Chinese market, in addition to improving their own competitive advantages, they can also consider multiple strategies such as cooperating with local Chinese companies, joint venture or acquisition, etc.

Vikcess has a unique combination of decades of international MedTech experience and Chinese know-how and network, ready to be deployed to make your business prosperous. Tell us if you need professional advisory for business strategy or develop partnerships in China.