Deloitte has released a white paper titled"China's Medical Device Industry:How Enterprises Can Flourish in an increasingly fierce Market Competition",revealing how foreign medical device companies can respond to changes in regulatory environments and fierce market competition by implementing the"In China,For China"strategy when expanding and developing the Chinese market.

　　In 2020,the estimated size of China's medical device market was 800 billion yuan,more than double the 308 billion yuan in 2015.Since 2015,the average annual growth rate of the industry has remained around 20%,and in recent years,the growth rate has consistently exceeded that of GDP.Between 2015 and 2019,China's foreign trade in medical devices grew at a rate of nearly 10%per year,exceeding the global growth rate,indicating that China's proportion in the international medical device trade market is increasing.

　　Jian Sihua,managing partner of Deloitte China's life science and medical industry,said:The Chinese medical device market currently accounts for nearly 20%of the global medical device market,and it is expected that this growth trend will continue to be driven by key factors such as aging population,income growth,and strengthened clinic and hospital services.Therefore,China is increasingly becoming a major market that foreign companies cannot ignore.However,like markets in all countries,the Chinese medical device market has its unique regulatory and competitive environment,Enterprises need to consider how to find their best positioning in the market

　　In recent years,regulatory policies in China's medical device industry have been changing and affecting foreign brands,with central and local governments more inclined to support domestic manufacturing.However,complete localization of the Chinese medical device market is not realistic,especially as imports play an important role in innovation and technology dissemination in the industry.

　　Deloitte China Financial Consulting Partner McAllen believes that"foreign companies can consider directly investing in establishing local operating institutions or collaborating with original equipment manufacturers(OEMs)to overcome regulatory challenges.In addition,the main considerations for foreign companies entering the Chinese market are shifting from traditional labor costs and infrastructure to tax incentives,financial subsidies,and industry compliance support provided by local governments."

　　The COVID-19 has accelerated the approval of medical devices,promoted the rapid growth of the number of new manufacturers,and also brought price pressure to foreign enterprises.The government's reforms aimed at reducing the cost of medical services have also made hospitals more price sensitive.After the introduction of a centralized procurement system for high-value medical consumables in China,the price of stents has significantly decreased by 90%,which is an example.

　　The white paper points out that foreign companies can focus on exploring a high-value,technological niche market,and local suppliers cannot easily lower prices.These niche products are also unlikely to be the target of centralized procurement plans.In addition,medical device manufacturers should also consider making good use of the Internet of Things(IoMT)for healthcare,providing value-added services to avoid commercialization of medical device products and accelerate industry value growth.

　　McAllen's summary:"In order to seize the huge opportunities in the Chinese market,many foreign companies in China are transforming and implementing a'in China,for China'strategy,while responding more quickly to customer needs.Despite the short-term changes in competition and regulatory fields currently facing the industry,multinational medical device companies need to look ahead,increase investment in innovative technology,and re-examine their current business models in China in order to seize the future market growth points in China."