Return to site

Article | Opportunities for Israeli MedTech Companies in China

March 8, 2022

China summons plenty of opportunities for Israeli MedTech companies.

中国为以色列医疗科技公司带来了大量的机会。

The potential in the Chinese healthcare world is huge for companies in different stages of development – as long as they bring added value to it.

对于处于不同发展阶段的企业来说,只要它们能为中国医疗行业创造价值,中国医疗行业都能为它们提供广阔的天地以施展拳脚。

This article summarizes the opportunities as well as the challenges and risks that need to be considered when entering the Chinese Healthcare Market, as well as strategies for a productive and profitable entrance.

本文总结了海外企业进入中国医疗保健市场时需要考虑的机遇、挑战和风险,以及在初入市场时保持高效和盈利的策略。

Why should medical companies consider entering the Chinese market? How to do it and what should be considered?

医药公司为什么要考虑进入中国市场? 如何进入?应该考虑些什么?

The medical sector is a booming industry in China, and it is expected to keep growing. The main reasons for that are an increased prevalence of chronic diseases due to China’s aging population, as well as China's increasing medical expenditure per capita. There is a quest in China for new technologies to improve citizens' quality of life. Some of the niches with special demand in China are: In-Vitro Diagnostics (IVD), orthopedics, implants, and Imaging and Computer-Aided Diagnostic Equipment.

医疗行业在中国是一个蓬勃发展的行业,预计将继续增长。主要原因是中国人口老龄化导致慢性病患病率增加,以及人均医疗费用支出的增加。中国正在寻求新技术来提高公民的生活质量。中国医疗行业的细分市场包括:体外诊断(IVD)、骨科、植入物、成像和计算机辅助诊断设备。

Israel's reputation in China is of an innovative nation, a source of knowledge and Hi-Tech solutions. Indeed, there is a huge and growing number of Israeli companies advancing medical technology. These companies are in a great position to meet the growing needs of the Chinese medical market for high-end technologies.

以色列在中国有着创新国家的良好声誉,被视为一个用高科技创造美好生活的源泉。事实上,有大量且不断增长的以色列公司在推进医疗技术创新发展。这些公司在满足中国医疗市场对高端技术日益增长的需求方面处于有利地位。

Regulatory and law

法律法规

If your plan is to enter the Chinese market, you should be aware of the rapidly changing regulations in China. You should make a NMPA registration for your product, as well as set legal actions for IP protection. It is strongly recommended to obtain China oriented legal assistance for that. Good legal assistance should take care of suitable registrations and approvals to run your product in China, as well as setting a safe legal framework for your IP. Besides setting legal measures to protect your IP, you also should set a business strategy for this purpose. The strategies differ between the different ways of entering the Chinese market.

如果你希望进入中国市场,以下事项是你应该注意的:了解中国不断更新的法规;在国家药品监督管理局(NMPA)对产品进行注册;采取关于知识产权保护的法律措施。为此,我们强烈建议你寻求针对中国的司法协助。良好的法律协助会为你的产品在中国获得合规的注册和批准,并为你的知识产权保护设置一个安全的法律框架。除了采取法律措施来保护你的知识产权,你还需要为此制定商业战略,战略随着进入中国市场的方式不同,应该有所区别。

The following firms may help you in the regulation and law field: “Shibolet & Co. Law Firm”, “A&Z Law Firm”, “BNLS Law Firm” , and “Chamzon Law Firm”.

以下公司在相关法律法规方面能给到你帮助:西博雷特律师事务所、里格律师事务所、搏纳朗盛律师事务所、乾中律师事务所。

Entrance strategies

进入的策略

There are several ways to enter the medical Chinese market. Any of the ways is suitable for different business considerations, overall strategy, and the status of the firm.

进入中国医疗市场有几种方式。任何一种方法都适用于不同的业务、总体战略和企业的状况。

Set a local operation

本土化运营策略

China's formal policy is to guide local hospitals to prioritize procurement of local medical production. The aspiration of the Chinese government is that in 2025 the local mid-to-high-end medical production will be 50% of hospitals total procurement. In 2030, it is expected to reach 95%. Considering this policy, it makes sense that if your business has long term goals in China, you better invest in localizing there.

中国的政策是鼓励地方医院优先采购本土生产的医疗用品。中国政府的计划是,到2025年,本土生产的中高端医疗用品将达到医院采购总量的50%。到2030年,这一比例预计将达到95%。考虑到这一政策,如果你的企业在中国有长期发展的计划,最好进行本地化投资。

Localizing in China will make it easier for you to reduce prices to compete in China's price sensitive market, as well as benefit marketing and customer services. Additionally, this entrance strategy is a relatively low risk for your IP. On the other hand, as it is quite costly, it isn’t suitable for companies who don’t have enough resources. Also, since localizing your business takes time, if you are in a hurry to enter the market before saturation by competitors, you are better off choosing a different method.

在中国进行本地化产投将使你更容易降低产品价格,从而更有利于在价格敏感的中国市场竞争,以及有利于市场营销和客户服务。此外,这种进入策略对你的知识产权保护来说风险相对较低。从另一方面来看,由于它是相当耗费财力的,所以它并不适合资源较匮乏的公司。并且,由于业务本地化需要时间,如果你急于在竞争对手饱和之前进入市场,最好另寻他计。

We recommend “PTL Group” or “Salveo Group” & “PRI Management and Consulting Ltd.” as companies who can help you to set your business in China.

我们推荐以下公司帮助你在中国开展业务:PTL 集团、Salveo集团和 PRI管理投资有限公司。

Contract OEM

与厂商合作的策略

Through a law in regulation, one can quickly enter the Chinese medical market with a contract with OEM. This model of entrance is also met with the Chinese policy to prioritize local production. This way is cheaper than investing directly in local business. Nevertheless, this model is relatively risky in terms of protecting your IP. If you choose in this way, you should choose a qualified OEM and after the beginning of the production you should track the quality of the products continually. It is suitable for medical solutions which are not easy to imitate.

根据相关法律法规,企业可以与制造商签订合同,从而迅速进入中国医疗市场。这种进入模式也符合中国优先考虑本土产品的政策,且比直接在当地投资更经济。然而,就保护你的知识产权而言,这种模式是相对危险的。据此,你必须选择一个合格的厂商,在开始生产后,还应该持续跟踪产品的质量。这适用于不容易被模仿的医疗解决方案。

For finding a qualified and suitable OEM for your product, SinoSciences Ltd. services are recommended.

为你的产品寻找合格且匹配的厂商,我们推荐永樽达医疗科技有限公司。

Purely import

纯进口策略

Purely relying on import to China also can be suitable in some cases. This strategy is suitable for firms who aim to enter the market quickly before the company's field becomes too saturated by competitors. It is suitable mostly for small companies without adequate resources to set up production in China. On the flipside, this strategy will make regulation much more difficult as it is not going hand in hand with China's policy of prioritizing local production. Additionally, as an importer it can be difficult for you to reduce product prices to compete in China's price sensitive market. If your product is something that cannot be achieved from other firms, your entrance chances are still quite high.

在某些情况下,单纯依靠进口也是可行的。这种策略适用于希望在竞争对手过度饱和之前迅速进入市场的公司,且更适合没有足够资源在中国进行生产的小公司。从另一方面看,这一战略更难迎合法规,因为它与中国优先考虑本地产品的政策不一致。此外,作为进口商,你很难通过降低产品价格来在价格敏感的中国市场获取竞争优势。但如果你的产品是其他公司无法复制的,采用此策略的成功几率仍然相当可观。

For finding a suitable distributor for your product, SinoSciences Ltd.

services are advised.

为你的产品寻找经销商,我们推荐永樽达医疗科技有限公司。

Partnerships for R&D

在研发方面寻求合作伙伴

Developing med-tech products is a long-term project. The R&D is a long process requiring high financial investment. Nowadays there are plenty of mid and big size Chinese companies who are looking for partnerships with foreign MedTech companies. They are willing to invest in the R&D process financially, hoping to get new MedTech solutions into China. Partnerships with such companies can also expose the foreign firms to incentives and special opportunities with the local markets. The Chinese companies are experienced in handling the regulation in China. Partnering with them also meets the ideal of the Chinese government of local production in hospitals.

开发医疗技术产品是一个长期的项目。其中,研发是一个需要大量资金投入的长期过程。如今,有许多大中型中国公司正在寻找与海外医疗技术公司的合作机会。他们愿意为研发投入资金,希望寻求新的医疗技术用于解决中国的问题。与这样的公司进行合作可以使海外公司获得当地市场的奖励和特殊机会。且中国企业在处理当地法规方面经验丰富,与他们合作也利于享受中国政府促进医院进行医疗资源本地化生产与采购的政策红利。

The following platforms and firms may help you to set partnerships and to raise investments: INNONATION, Ekpac and Asia Direct Partners Limited.

为你建立合作伙伴关系以及获取投资,我们推荐以下平台与公司:创新国度、维昌洋行和以信咨询有限公司。

In sum, China brings forth plenty of opportunities for Israeli MedTech companies. The potential in the Chinese healthcare world is huge for companies in different stages of development – as long as they bring added value to it.

总之,中国医疗行业为处于不同发展阶段的以色列医疗科技公司带来了大量的机会——只要它们能为中国医疗行业创造价值。

There are challenges and risks that need to be considered when entering the Chinese Healthcare Market, as well as different strategies for a productive and profitable entrance.

在进入中国医疗保健市场时,不仅需要考虑面临的挑战和风险,而且要为实现高效和盈利而采取不同的市场战略。

Sources:

参考资料:

Deloitte. (2021). Chinese Medical Device Industry: How to thrive in an increasingly competitive market

https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/life-sciences-health-care/deloitte-cn-lshc-medical-device-white-paper-en-210301.pdf

The International Trade Administration, U.S. Department of Commerce. (2021). China- Country Commercial Guide- Healthcare. https://www.trade.gov/country-commercial-guides/china-healthcare

.?טליה לוין. (2021). "הישראלים מאוד חכמים":איך הפכה ישראל למעצמת סטארט אפ דווקא בסין

https://www.maariv.co.il/business/economic/israel/Article-861794.מעריב

 

If you are interested in talking to these companies or joining IsCham as a member, please contact:

如果想与以上公司取得联系或加入中以商会成为会员,欢迎联系:info@ischam.org.