Increasing Demand for Devices in China

Due to the relaxation of China’s zero COVID policy and government investment in Chinese hospitals, the demand for medical devices in China should grow in 2023. With more Chinese getting COVID now, Chinese hospitals are seeing a dramatic rise in equipment needs. In particular, Chinese hospitals have a shortage of ICU beds compared to the West and thus, ICU equipment is urgently needed.

In addition, Chinese hospitals are highly motivated now to upgrade their facilities and services. In late 2022, China’s State Council inaugurated a loan program worth about $29 billion (with an interest rate below 1%) to healthcare facilities to increase and improve their medical equipment. The Chinese government has also announced a blueprint to accelerate infrastructure and hospital development in rural areas. In 2022, over 1,200 rural hospitals were targeted for investment.