Analysis and Outlook on China's Medical Device Import and Export Situation in 2024

In 2024, despite the slow global economic recovery, accelerated restructuring of industrial chains, and intertwined geopolitical risks, China's medical device foreign trade has shown a remarkable trend of "resilient recovery and dynamic transformation," driven by innovation and structural optimization. According to the China Chamber of Commerce for Import and Export of Medicines and Health Products, the total import and export volume for the year reached $84.55 billion, a year-on-year increase of 1.89%, showing a notable recovery compared to the previous year. Of this, exports totaled $48.75 billion, growing 7.3% year-on-year, marking a return to a strong growth trajectory after three years. Imports amounted to $35.8 billion, down 4.7% year-on-year, as the process of China's substitution continued to deepen. The year ended with a trade surplus of $12.95 billion.

1. Significant Export Growth, Returning to a Positive Development Trend

From a quarterly perspective, China's medical device exports in 2024 showed a "quarterly increase and accelerated recovery" trend:

- Q1: $10.99 billion (up 1.6% year-on-year)

- Q2: $11.98 billion (up 4.4%)

- Q3: $12.36 billion (up 7.6%)

- Q4: $13.44 billion (up 14.8%)

The total year-on-year growth in exports turned positive, demonstrating a strong recovery. This growth trajectory indicates that the industry has completely overcome the “pulse-like fluctuations” caused by the COVID-19 pandemic and returned to a more normalized growth path.

2. Export Product Structure Optimized and Upgraded

In terms of the export performance of major medical device categories, all five major categories showed varying degrees of growth.

- Disposable Consumables: Exports increased significantly by 13.91%, totaling $10.52 billion. Export volume rose 9.9%, and the average export price increased by 3.6%, resulting in a dual increase in both volume and price. Products like gloves, catheters, cannulas, syringes, and stents showed notable export growth, driving the rise in disposable consumable exports.

- Hospital Diagnosis and Treatment Products: As the largest category for China's medical device exports, exports of diagnosis and treatment products amounted to $22.26 billion, up 6.87% year-on-year. Products such as endoscopes, in vitro diagnostic reagents, blood pressure monitors, MRI equipment, and anesthesia machines saw double-digit growth. With the continuous upgrading of medical technology in China, high-quality medical technology exports have increasingly driven the growth in diagnostic and treatment equipment exports.

- Health Rehabilitation Products: Exports grew by 18.6% in volume but saw a 12% drop in average price, leading to a 4.34% growth in export value to $9.83 billion. Massage devices, the largest export item in this category, also showed a pattern of volume increase but price decrease. This can be attributed to the growth in the export of small massage and wellness devices, but also to fierce competition in the massage chair market, which caused prices to drop.

- Medical Dressings: Exports of medical dressings totaled $4.03 billion, a slight increase of 0.77% year-on-year. Export volume rose by 15.3%, but the average export price declined by 12.6%. This was influenced by the ongoing sharp drop in the export of face masks and also reflects the resumption of international demand for medical dressings post-pandemic, although competition remains fierce. Notably, high-end medical dressings saw significant export growth, especially in the European and American markets.

- Oral Equipment and Materials: Exports of oral equipment and materials continued their good growth trend, with exports increasing by 9.05%, reaching $2.13 billion. This was largely due to increased R&D investment by Chinese companies, which significantly improved technological strength. The widespread application of digital technologies, such as 3D printing and AI, in oral equipment and materials has driven product upgrades. For instance, digital oral CBCT equipment developed by some companies offers clearer imaging and more accurate diagnostics, gaining international attention.

3. Diverse Export Markets, Expanding Multidimensionally

Developed regions such as the US, EU, and Japan remain China's major export markets for medical devices.

- United States: As the largest export destination, the US accounted for 24.1% of China's medical device exports, amounting to $11.76 billion, a 9.4% year-on-year increase. The growth was driven by pre-emptive imports of products like gloves and syringes in response to increased tariffs, as well as the growing recognition of Chinese products in the US market, particularly in high-tech medical devices like endoscopes, CT scanners, and anesthesia machines.

- European Union: Exports to the EU continued to recover in 2024, with exports to the 27 EU countries reaching $9.0 billion, up 12%. The market share accounted for 18.5%. Exports to the top ten EU trading partners showed growth, with double-digit increases in countries such as the Netherlands, France, Italy, Poland, Spain, Denmark, and Romania.

- ASEAN: Exports to the ten ASEAN countries reached $5.41 billion, up 4.8%. Exports to Vietnam, Singapore, Thailand, Malaysia, and Indonesia all showed strong growth.

- Latin America: Exports to Latin America grew by 14.6%, reaching $3.96 billion, with all the top ten trading partners achieving positive growth. Exports to Brazil, Mexico, Chile, Peru, Colombia, Venezuela, and Costa Rica all increased by double digits.

- Middle East: Exports to the Middle East reached $1.94 billion, up 15.6%, with significant growth in exports to the UAE, Saudi Arabia, and Israel.

- Central Asia: Exports to Central Asia grew by 12.6% to $690 million, driven by growth in Kazakhstan and Kyrgyzstan.

4. China's Substitution Deepens, Import Structure Gradually Reshaped

China's medical device imports in 2024 amounted to $35.8 billion, a 4.7% year-on-year decrease. Over recent years, China has made significant strides in R&D, particularly in overcoming core technology and key component challenges, leading to considerable progress in the quality and reputation of Chinese medical devices. China's substitution has been further facilitated by policies promoting the collection and substitution of imported medical devices, providing a larger market for high-performance, cost-effective Chinese products. As a result, medical device imports have been on a declining trend since 2022.

However, there are still certain products with lower China's substitution rates, such as diagnostic reagents, high-value consumables, high-end medical equipment, and their key components, which remain major import categories. Moreover, with an aging population and increasing awareness of health management, demand for rehabilitation medical devices has surged, leading to a steady rise in imports in this segment.

5. Opportunities and Challenges, Outlook for the Internationalization of China's Medical Devices

Despite the challenges posed by global geopolitical risks, trade restrictions, and economic uncertainties, there are substantial opportunities for China's medical device industry. The global medical device market is entering a period of rapid growth driven by aging populations, rising chronic disease rates, and technological advancements. The Belt and Road Initiative has opened up new markets for Chinese medical device companies, while emerging markets such as Southeast Asia, Africa, and Latin America present vast untapped potential due to growing demand for affordable medical products.

Furthermore, the Chinese government has introduced a series of supportive policies to promote high-quality industry development and stabilize foreign trade, offering strong guarantees for the internationalization of China's medical device industry. While risks remain, the growth potential for Chinese medical device exports is enormous, as companies continue to innovate and expand their global footprint.