With 360 million Chinese to be over 60 years old by 2030, investment into medtech has never been greater. Most investment to date has been through international firms however there is a growing desire to develop the 'tech' domestically. One such area is medical robotics where the China Daily newspaper reported the total spend by 2021 could exceed 2.18bn yuan. While such an investment is small relative to the overall 130bn yuan healthcare spending in China, the implications for increasing the access to robotic healthcare to a wider population is very attractive to a country where there are severe limitations of provision of healthcare. 

While visiting a trade fair in Harbin in January, use of first-generation robotics was much in evidence (see photo). These robots were used in hospitals care homes and schools to help with 'waiter-style' capabilities for ordering and delivering food to customers. However research was being undertaken into more complex robotics in a bid to adjust the manufacturing base away from heavy polluting industries. 

Lowering the cost of global healthcare?

As with many developments in China, implementing innovation across a population of 1.36bn could have dramatic consequences for healthcare worldwide. Mass adoption of a process would encourage significant domestic investment in reducing manufacturing costs. As reliability and quality improve to international standards then it will only be a matter of time before such products will be available to international markets. Of course, the Chinese manufacturers would have to learn from previous mistakes where they offered limited post-purchase customer support but the potential is there.

Limitations on growth

Of course such investment in surgical robotics will be constrained to the very top hospital graded 3AAA (三级特等). With average procurement thresholds set at 2million yuan, a level above which incurs considerable additional administrative scrutiny, until robotics costs come down then mass adoption may have to wait a decade or more.

Chinese investors partner with UK medtech on trials

While smaller UK firms seek investment, one factor that the Chinese can offer is access to hospitals to accelerate CFDA approval rials. We work with a number of Chinese medtech and biotech investors from Shanghai that have established networks of hospitals and clinics. Through negotiated contracts they are able to support trials in China that can swiftly place products into trial and operational markets. This is becoming ever more important as the Chinese Government clamps down on foreign product distribution channels. Aligning oneself with major investors/distributors will become essential in order to protect market share.

China UK Medtech MarketPlace

At the China Investors Club China UK Medtech MarketPlace in October 2016 we saw evidence of this change in attitude towards Chinese markets. Some UK firms were innovating in the UK but making China their first country to launch their products. As more established partnership investors come to the UK we should be able to see access to Chinese markets increase. The October 2017 China UK Medtech MarketPlace will focus on these trends and consider what else needs to be done to help UK innovators access this growing market.