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9 May 2008
Foreign and local players take pulse of China medical offerings - report from China Med 2008, Beijing

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Realistic human body models.

Medical needs on the Chinese mainland are increasingly the focus of companies involved in the technology, development and commercialisation of medical equipment and medicines themselves.

More than 600 exhibitors from over 20 countries and regions, including the domestic sector on the Mainland, the US and France, participated in the 20th International Medical Instruments and Equipment Exhibition (China Med 2008) held at the Beijing International Exhibition Center from 3 to 6 April, 2008.

China Med 2008 is the only UFI-approved medical equipment show on the Mainland. Over the past two decades, the show has grown in scale, while the number of exhibitors and the fair's influence on industry players both at home and abroad has swelled.

Regular exhibitors include leading international giants such as GE, Siemens, Philips, Toshiba, Kodak, Hitachi, Olympus, Ziehm Imaging (Germany) and Agfa. It's believed that since the show was first organised 20 years ago, over Rmb10 billion worth of advanced medical equipment has been introduced to the Mainland, of which, medical consumables represent several billion yuan.

Foreign exhibitors demonstrate latest products

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Endoscopic equipment demonstration on-site.
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A US-made radiofrequency scalpel.

Product demonstrations were immensely popular at the fairground. With the aid of a liquid crystal display, one promoter explained how a high-resolution endoscope with a 2mm-diameter tube worked, while a technician holding a US-made radio frequency scalpel demonstrated its advantages when used to remove tissue.

The Chinese mainland operations of Siemens Medical Solutions Group launched three brand new products at this year's show.

There was Somatom Definition AS, the world's first 4-dimensional (4D) spiral CT scan featuring its unique Adaptive 4D Spiral scan technology; it's able to support large-volume whole-organ capture (maximum 27cm) and the full CT scan for blood vessels.

Magnetom Verio 3.0T was also introduced at the show. It's a new-generation magnetic resonance imaging (MRI) machine featuring 3T field strength, 70cm open bore, total imaging matrix and 163 cm ultra-short magnetic substance. The machine brings together MRI physics and biopsy, and its outstanding features can provide quality assurance for nuclear magnetic resonance and PET-MR equipment in operating theatres.

Attendees also saw Artis zeego, a multi-axis robotic blood vessel imaging system with a unique large-volume horizontal CT imaging capability which can help ensure the accuracy and safety of operations.

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Equipment for the operating theatre.

Belimed AG of Switzerland, which specialises in infection control medical devices such as sanitiser and germ killer, was another well-regarded exhibitor at the show. The company's general manager Liu Xuan said China Med has firmly established itself as a leading show in Asia and the most influential event for the medical equipment industry in China; it plays a vital role in promoting co-operation and development of the industry on a global scale.

According to Liu, many overseas firms have made use of this international exchange platform to understand and enter the Chinese mainland market over the past 10 years. Many have grown from small to large businesses.

Liu said he hoped China Med will continue to serve as a platform for industry players and be a platform for innovation. He said Belimed aims to rank among the top three market leaders on the Chinese mainland in terms of market share.

Domestic medical equipment goes upmarket

Newly-designed Ultrasonic and CT scans, some with proprietary IP rights, were among the locally-made exhibits promoted by domestic medical equipment makers. According to a spokesman for a Jiangsu-based CT scan maker, demand for medical diagnostic equipment such as the CT scan is very strong in the central and western regions, thanks to rising standards of living and medical services. The Jiangsu firm has teamed with research institutes and universities to develop new products.

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Scalpel with a rotatable head.

Another Mainland exhibitor from Shanghai showcased three of its latest optic fibre endoscopes. Compact, portable and 120-degree mobility are the major advantages of these devices. Doctors are able to get a wider view when using them to conduct endoscopic examinations. According to the company's Mr Chen, these products are currently exported to the US, the UK and Taiwan.

Zhou Yan, a specialist medical equipment sales representative, pointed out that her company attaches great importance to this show, as its standard is the highest in the industry. She also believed that since the show's inception, the level of domestic exhibits has been rising steadily.

Wang Ping, representative of a Guangzhou-based exhibitor which specialises in developing and manufacturing hospital beds, said: "Medical equipment manufacturers [on the Chinese mainland] must adapt to changing concepts and trends in product development and production in the international market and embrace new ideas such as professional collaboration and opting for the best available support from the international market."

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Visitor talks to foreign exhibitors.
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Surgery control console.

According to Wang, "we should leverage on the advantages of the global supply chain from design, development to production, testing and after-sales service. Our multi-purpose hospital beds are designed with the needs of different patients in mind. Besides, they are compatible with the relevant medical equipment to facilitate treatment and rehabilitation."

The company which Wang represents is understood to have teamed up with a US firm to produce five advanced devices. The company is understood to have received two major orders on the first day of the show.

Co-operative opportunities

Industry sources pointed out that due to the relatively weak foundation of the medical equipment industry on the Mainland, R&D is lagging far behind professional needs. Currently, locally-made medical equipment makes up 50% to 60% of the market, while the majority of high-end products have been imported.

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Oxygen generators.

However, in recent years, the domestic industry has been catching up quickly and growing at an annual rate of 14%.

A number of clusters have developed in the medical equipment industry. Some enterprises now offer products with proprietary IP rights and high growth potential, with a number having already entered the international markets of the US and Europe. The market outlook for these products is promising.

Market analysts point out that some medium-sized medical equipment enterprises are strong financially and have sound business operations - but lack R&D capabilities. Their products are low tech and of low value, so it's difficult for them to upgrade alone.

They should consider co-operating with partners that are strong in technology or R&D to achieve complementary relationships, according to industry commentators.

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Domestically-made ultrasonic equipment.

Meanwhile, small start-ups might possess unique technology or business operations but often lack capital and market penetration. They are well positioned to team up with overseas investors which can contribute capital and jointly explore new markets.

Big turnout of professional buyers

China Med is jointly organised by the Health section under the General Logistics Department of the Chinese People's Liberation Army (PLA), China World Trade Center Co Ltd, Huitong Xingye International Exhibition (Beijing) Co Ltd and Messe Düsseldorf China Ltd.

With a total exhibition space of 30,000 sqm, China Med 2008 combined the exhibition with academic exchange and centralised purchasing opportunities.

The wide range of exhibits covered electronic medical equipment, medical imaging equipment and diagnostic and therapeutic equipment. There were also opportunities to see otorhinolaryngology (ENT) and stomatology equipment, medical consumables, optic equipment, operating theatre equipment and first-aid apparatus.

Rehabilitation and health care equipment was on view, as was equipment for the physically handicapped and elderly, medical furniture, medical journals and services, medical education and teaching aids, and bio-test and laboratory equipment.

The show attracted about 60,000 professional buyers from Mainland and overseas trading companies, research institutes, government departments, and hospital procurement and administration units, as well as over 3,000 representatives from the PLA and the medical and health department of the military police. More than 1,500 experts and academics attended the 60 seminars held during the fair.

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China Med underway.

Over Rmb1 billion worth of orders were signed by various units conducting centralised purchasing during the fair.

According to the organisers, about 30% of the visitors were from hospitals, medical institutions and medical research institutes, and about 60% were wholesalers, retailers, agents and traders in the medical field.

These visitors came from all over China and more than 20 countries and regions including South Korea, Japan, the US, Germany, Australia, Canada, Sweden, Turkey, Switzerland, the UK, Singapore, Thailand, Denmark, Bulgaria, Iran, Malaysia, South Africa, Brazil, Slovakia and United Arab Emirates.

The organisers also arranged experts from selected military districts and users to view samples, as well as consult on and test certain medical equipment on-site. The show allowed military hospitals to obtain first-hand information needed for organising tenders, as well as tender evaluation of medical equipment offered by foreign suppliers.

from special correspondent Xu Lin, Beijing