China is already the third largest medical device market in the world, after the United States and Japan.

Chinese the medical devices industry is concentrated in the Pearl River delta, Yangtze River delta and the Circum-Bohai-Sea region. The economic conditions are favorable to the growth of the industry, including local technological strength, a huge talent pool, a relatively solid clinical medical foundation and preferential policies. The combined output value and sales income of these three regions account for over 80% of the national total.

In 2007, the top countries for China’s medical device imports remained the United States, Japan and Germany. China imported 580 million USD worth of medical device from the US, an increase of 11.15% over the previous year; 350 million USD from Germany, an increase of 16.33%; and 330 million USD from Japan, a drop of 3.17%. In fact, 65.26% of all China’s medical device imports came from these three countries.

Within 5 to 7 years, China will surpass Japan and become the second largest medical device market in the world. There were 19 countries and areas from which China’s medical device imports surpassed 10 million USD, and 18 countries and areas from which China’s imports more than doubled

Research and Development is one of the important areas of investment. Medical device innovations derived from medical technology innovations is key area. After sale service is another option for investment.

A huge future market is foreseen for bio-chips, household medical devices and in high value added electronic products. Digitalization of medical devices is another key area for the growth and investment.

The investment boom in Chinese medical and health industry has maintained its speed. Since October, 2007 the industry has recorded the highest investment rate in China’s investment market (it took up 16.7% of all investment cases and 20.1% of all investment capital in November). As the breakdown of the medical and health industry reveals, the medical devices and the research and development of medicines are the area in which institutional investors have the greatest interest.

This is a very hot area, and all indications are that it will only get hotter. Demand can only increase as populations age, digital and biomedical technologies continue to advance, and an ever larger number of people have the resources to become customers.

The major players in the region includes : Beijing Wandong Medical Equipment Co., Ltd, Beijing Aerospace Changfeng Co., Ltd, Shenzhen Weida Medical Technology Co., Ltd,Shangdong Shinva Medical Instrument Co. Ltd; Shangdong Wanjie Group; China National Medical Equipment Industry Corporation; Shanghai Medical Instrument Co., Ltd.;International renowned medical device enterprises; Siemens Mindit Magnetic Resonance Co., Ltd. GE Healthcare; The Bayer Group; Aloka Co., Ltd.; Kodak Medical Group; and Omron Group.