Sourcing and Manufacturing Medical Devices and Drugs in China

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china medical device market, china nmpa market

China has become a key global site for medical device, pharmaceutical, and API sourcing and manufacturing. This is a function of its relatively low costs, huge industrial base, and large foreign investment. There are two key reasons why Western medical companies currently source and manufacture their products in China: 1) to reduce the cost of components, API’s, and finished medical products; and 2) to make or source medical products for sale in the expanding domestic Chinese market. However, many fall victim to insufficient preparation and misinformation, thereby causing delays and import issues.

Below are some common issues associated with sourcing and manufacturing in China that can make the process challenging:

  • Fast economic development is rapidly changing the country.
    The costs of medical manufacturing in China are increasing dramatically in the key coastal urban areas, such as the Pearl River Delta in Guangdong and the greater Shanghai area. To deal with this, some foreign and Chinese medical manufacturers are moving their factories farther inland to less developed parts of China, while other factories are staying put and moving up the value chain by manufacturing more sophisticated medical products.
  • The research and fieldwork involved can be complex and time-consuming.
    Finding the right factories and subcontractors and/or setting up your own local facilities takes a great deal of patience and due diligence.
  • Finding quality, honest, and reliable suppliers can be difficult.
    Ensuring that your suppliers in China are reliable and have quality systems based on international standards is not an easy process. In China, suppliers and manufacturers are notorious for taking advantage of Western medical companies that are not familiar with Chinese business practices or know little about the China medical market. Chinese suppliers and manufacturers have been known to exude unethical practices. For example, if you assist a Chinese medical supplier with improving their manufacturing processes, you must ensure they will not replicate and sell products to your competitors later on.

Contact us today to speak to our sourcing experts.

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