Chinese Medical Technology Industry Continues to Grow
China is not only famous for its culture and history; it is also an internationally popular investment target. The economic development of the most populous country of the world is significant. Its annual economic growth rates and export figures allow the People's Republic of China to occupy a top position world-wide. China was considered a true "economic miracle." In 2012, China recorded economic growth of less than 10 percent (7.8 percent) for the first time. And for this year, no double-digit growth in gross domestic product is predicted either. This can be traced back to the decline in demand from Europe and the USA. Rapid growth seems to become replaced by a solid basis.
Therefore, the Chinese government seeks to relativize the dependence on exports and to expand domestic consumption. Innovation, which is heavily promoted in the course of economic change and new trends, is considered to be the driving force. In this sense, quality replaces quantitative growth. The focus is on brand manufacturers and a clear positioning of the companies operating in China. » China Overview
The Chinese medical technology industry experienced particular growth, and continues to show good prospects. This is due to the still expandable health system, the rapidly aging population and – in terms of medical care – underdeveloped regions of China. The Chinese central government recognized the urgency of modernization and wants to invest around 50 billion Euros in the health sector by 2020. There are plans for medical equipment of backward regions, the construction of approximately 2,000 new hospitals, and the establishment of smaller treatment centers. In the field of high-end medical equipment, large western corporations have already invested. However, foreign investors are increasingly focusing on basic segments. High-quality consumables are needed in the (newly built) hospitals and are being imported. Along with the development of the Chinese economy towards its newly found innovative strength, innovations in medical technology are needed more than ever. As a manufacturer of medical products, a strong brand identity is promising. Due to its growing importance and current demographics, medical technology remains largely unaffected by economic fluctuations. Opportunities that had opened up in recent years have been initiated by the comprehensive compulsory health insurance since 2008. The medical technology industry is supported by the 12th Five Year Plan of the Chinese government which includes the creation of eight to ten state science and technology areas as well as 20 to 30 technical R&D platforms. » Research and development
It is not only the medical industry that benefits from an increased promotion of innovation. With regard to sustainability, the Chinese government aims to achieve a structural change in the field of environmental technology. A change in the energy industry is also becoming apparent. The renewable energy market is one of the growth industries of China. Chinese are particularly interested in hydropower plants. As part of a restructuring towards efficient environmental technologies, investments in this area are in great demand. The food industry and the packaging industry are also emerging markets. The automotive, chemical and ICT industry also remain promising. However, brand quality does not only score in these industries, but also in the mechanical engineering industry. Due to largely outdated machinery there is a great demand for quality German engineering.
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