The United States Trade Office released its annual report in February. In the report, they discuss the fact that China is not being open to trade for medical devices and strongly supports locally made products. The report focused on volume-based procurement (VBP) and how China continues to lower the prices of foreign devices via VBP. The report says China is making the device industry a low-cost, low-quality market that is not open to new foreign technologies. It points out that some provinces in China favor domestic purchases for tenders, prioritize locally made products over imports, subsidize domestically made devices, etc. These policies also support China’s Made in China 2025 theme, which is detrimental to foreign-made device exports. The USTR says they will continue to push China for fair and equal access, yet the jury is still out on whether they will be successful.
Written by: Ames Gross – President and Founder, Pacific Bridge Medical (PBM)
Mr. Gross founded PBM in 1988 and has helped hundreds of medical companies with regulatory and business development issues in Asia. He is recognized nationally and internationally as a leader in the Asian medical markets. Mr. Gross has a BA degree, Phi Beta Kappa, from the University of Pennsylvania and an MBA from Columbia University.
Source used in the article: https://ustr.gov/sites/default/files/2023-02/2022%20USTR%20Report%20to%20Congress%20on%20China’s%20WTO%20Compliance%20-%20Final.pdf