Driven by price advantages and the highly competitive domestic market, Chinese medical device manufacturers are expanding overseas with increasingly high-end products.

According to customs data, in the growing Chinese medical products export sector, the proportion of high-end devices such as surgical robots and artificial joints has increased, while that of low-end products such as syringes, needles, and gauze has decreased. From January to July this year, the export value of Class III devices (the highest risk and most strictly regulated category) was $3.9 billion, accounting for 32.37% of China’s total medical device exports, higher than 28.6% in 2018. The export value of low-risk medical devices (including syringes, needles, and gauze) accounted for 25.27% of China’s total medical device exports, lower than 30.55% in 2018.

Like Chinese new energy companies, more and more medical device manufacturers are actively seeking development overseas due to their affordable prices and fierce domestic competition. Public data shows that in 2023, while the overall revenue of most medical device companies declined, those Chinese companies with growing revenue increased their share of overseas markets.

An employee at an advanced medical device company in Shenzhen said, “Since 2023, our overseas business has grown significantly, especially in Europe, Latin America, Southeast Asia, and Turkey. The quality of many Chinese medical device products is on par with those of the EU or the US, but they are 20% to 30% cheaper.”

Melanie Brown, a researcher at the McKinsey China Center, believes that the increasing share of Class III device exports highlights the growing ability of Chinese medical technology companies to produce more advanced products. Governments in low- and middle-income economies such as Latin America and Asia are more concerned with price, which is favorable for Chinese companies to expand into these economies.

China’s expansion in the global medical device industry is strong. Since 2021, medical devices have accounted for two-thirds of China’s healthcare investment in Europe. According to a report by Rongtong Group in June this year, the healthcare industry has become China’s second-largest area of investment in Europe, coming after foreign direct investment related to electric vehicles