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China Limits Foreign Medical Equipment, Pressures European Businesses to Localiz

Medical Technology

China Limits Foreign Medical Equipment, Pressures EU Firms to Localize – Business Honor

Business Honor
18 July, 2025

China restricts foreign medical equipment purchases, pushing European businesses to localize while local manufacturers like Mindray gain market advantage.

China has introduced new rules that limit public hospitals' ability to purchase equipment produced elsewhere, increasing difficulties for European medical device manufacturers. Policy bans Chinese authorities from buying foreign medical equipment for agreements over 45 million yuan, or about $6.3 million. Many advanced diagnostic and imaging devices can be found in this limit.

There is a major exemption, though: the new rule has no impact on foreign businesses that manufacture their gadgets in China. In order to keep their market access, more foreign businesses plan to localize their manufacturing operations in China. Elia Garcia, a medical researcher at GlobalData, stated that this gives businesses an appealing reason to produce their products locally.

Major European companies like Siemens Healthineers and Philips, whose costly machinery is often used in Chinese hospitals, are impacted by the rule. According to industry experts, China's behavior is a response to the European Union's decision to restrict Chinese manufacturers from obtaining similar valuable public contracts.

Chinese manufacturers of medical equipment, like United Imaging and Mindray, will benefit at this time. State-run hospitals may increase their demand for these businesses' competitive products. Their increasing popularity in their own nation might allow them to reach new foreign markets.

Currently, the medical technology operations have changed due to this development. In the past, trade was primarily influenced by cost and invention. Markets are now shaped by geopolitics and government actions.

The industry might change toward an approach that is more region-focused in the future. Medical device manufacturers must adapt by changing their processes for manufacturing as countries attempt to reduce their dependency on foreign suppliers. This could result in a less controlled but perhaps stronger global medical technology ecosystem that is more diverse and flexible.