Medical Device Import Up Fast to Guangdong Ports in Aug 2016

According to China Customs statistics, during January-August 2016, the imports of medical devices to Guangdong Province ports totaled CNY 3.08 Billion, up 24.7% year-on-year (YOY); therein, August monthly import reached CNY 420 Million, up 24.7% YOY.

1. Characteristics of Guangdong Import of Medical Devices in August:

(1) August import value grew fast both year-on-year and month-on-month (MOM). Since this year, all Guangdong ports have recorded fast growth in medical device imports, with monthly value not less than 300 million yuan in seven months, August value of 420 million yuan up 24.7% YOY and up 17% MOM. See the chart below:
 

(2) Over 80% of the total was made by ordinary trade mode. In August, Guangdong imported medical devices worth 350 million yuan by ordinary trade, up 26.2% YOY, accounting for 83.2% of the total value.

(3) EU and USA were major countries of origin, both contributing most to the import growth.

(4) The greatest value of import referred to X-ray application devices for curing, surgical and veterinary purposes.

2. Causes of the great growth in medical device import to Guangdong in August:

China has an expanding market demand for medical devices due to aging population and rising medical consumption, but short of supply resulting in the import boom. At present, China’s medical device market is valued beyond 100 billion yuan, annual growth at 23% or so; meanwhile, more than 90% of medical device enterprises in China are small and medium-sized, without intensive development, remaining low in investment and capacity, so they have not yet be favored by hospitals and consumers in terms of product quality, after-sale service and brand influence. Especially regarding high-end medical devices, foreign products are dominant on the market, causing continuous imports.

3. Notable Problems:

(1) Twenty kinds of medical devices will be exempted from import duties, the effect still uncertain however.

(2) The pilot policy of classified medical service is likely to benefit the medical device industry in China.