Author: Brian McLean
Date: December 20, 2002
Table of Contents

Executive Summary 4

Introduction 6

Background 6

Geography 7

Population. 7

Economic Status 9

Health Care Expenditure 9

Organization and Administration 10

Ministry of Health Regulations 11

Medical Regulations 11

Hospitals 12

Hospital Beds 14

Military Hospitals 15

Medical Personnel 15

Traditional Chinese Medicine 15

Health Care Development 16

Health Insurance 16

Rural Healthcare 17

Community Based Healthcare System 17

Commercial Medical Insurance 18

Market Access 18

Importing 18

Market for Medical Equipment and Supplies 19

Second Hand Equipment 19

Domestic Production 20

Multinational Producers 20

Exports 21

Imports 21

Tobacco Usage 23

Trade Fairs 23

Chinese Holidays 24

Appendix A (Map of China) 25

Appendix B (Hospitals and Hospitals Beds by Region) 26

Appendix C (Export Statistics) 29

Appendix D (Import Statistics) 30
Appendix E (Balance of Trade Statistics) 31

Appendix F (Tariffs and Duties) 32

EXECUTIVE SUMMARY
China: Medistat Country Profiles

BACKGROUND

The Chinese Communist Party founded the People’s Republic of China in 1949.After many years of isolation, the doors to the Chinese market were opened.Today, China is one of the largest, yet most difficult, markets to manage.With a population around 1.3 billion people, China makes up almost 20% of the world’s population.This figure alone displays the magnitude of this market in terms of customer base.

OBJECTIVE

By using Medistat, the intent is to determine the current and future state of the Chinese medical equipment market. This included a general review of China’s population base, healthcare spending, medical regulations, medical facilities, and foreign influences on the medical market.

KEY FINDINGS

Population
1.3 billion people(20% of the world’s population
Important to differentiate between urban and rural population
2/3 rural residents
1/3 urban residents

Healthcare Expenditure
China spends 6% of GDP on health care(estimated US $70 billion
1993(spent 3.8% of GDP
2010(predicted to spend 10% of GDP
By comparison, the United States spends about 13% of GDP

Government Control
Principal authority within the Chinese health care system is the Ministry of Health (MoH)
Recently implemented policies in an attempt to control hospital spending
The State Drug Administration (SDA) is responsible for regulating medical devices

Hospitals
Currently, there are approximately 66,500 hospitals(23% of which are at the county level and above
Focus on these hospitals because they are willing to spend money on medical equipment