Since the outbreak of the COVID-19 epidemic, it has severely impacted international trade and the world economy, posing challenges to global public health systems. Medical and epidemic prevention materials and related medical devices produced in China have made important contributions to the global fight against the epidemic, and the rapid growth in exports of medical devices for epidemic prevention has become a highlight of China's foreign trade.
According to the China Chamber of Commerce for Import and Export of Medicines and Health Products(hereinafter referred to as the MCCIMEHP)statistics,China's medical device import and export trade volume exceeded US\u2009100 billion in 2020, with exports reaching approximately US\u2009730 billion.
The continuous surge in China's medical device exports under the backdrop of the epidemic is mainly due to the fact that while the medical device industry chains and supply chains in many countries and regions have been severely damaged or even shut down, China's industrial system was the first to resume normal operation, and the development strength accumulated over the years has exploded, further highlighting its competitive advantages in the international market.
In the first half of 2021, China's medical device exports decreased compared to the same period last year,mainly due to the decrease in exports of masks, protective clothing, and respirators, which are epidemic prevention materials.However, the export growth rate of COVID-19 diagnostic reagents remained relatively stable, the epidemic in India led to a surge in exports of oxygen generators, exports of traditional medical devices returned to normal, and the growth rate and product structure of medical device exports gradually returned to rationality.
Import and export markets maintain healthy development
Statistics from the MCCIMEHP show that from January to June this year, China's medical device import and export trade volume was US\u2009615.04 billion, down 23.86\u2009% year-on-year; of which, exports were US\u2009443.88 billion, down 31.32\u2009% year-on-year; and imports were US\u2009171.16 billion, up 5.96\u2009% year-on-year.
The decrease in exports is mainly due to the reduced global demand for epidemic prevention consumables such as masks and protective clothing as epidemic prevention enters a normalized state, resulting in a year-on-year decrease in exports of 75.05\u2009%. At the same time, as the epidemic situation in various countries and regions eased and local manufacturing industries recovered, their reliance on China's epidemic prevention products decreased. Exports of imaging diagnostic equipment related to the epidemic also saw a slight decrease, but exports of other traditional and advantageous medical devices have resumed growth.
Although exports have significantly decreased compared to last year, looking at the development trend of China's medical device import and export trade in recent years, the healthy development trend of medical device exports is evident. It is worth mentioning that,China's medical device exports accounted for 53.53\u2009% in the first half of this year,breaking the long-standing situation where Western medicine products accounted for half of the country's pharmaceutical exports.
According to statistics, in the first half of this year,the United States is China's largest export market for medical devices, followed by Germany, the United Kingdom, and Japan, accounting for 49.09\u2009% of total exports.In addition, emerging markets along the Belt and Road Initiative are also important export regions for China's medical devices, with exports reaching US\u2009141.37 billion, accounting for about 31.8\u2009%, and this proportion is expected to further increase in the future.
In terms of exporting provinces, the top ten provinces in China's medical device exports in the first half of this year accounted for 89.92\u2009% of the total, further reflecting the high degree of regional concentration of China's medical device exports. Major exporting provinces such as Guangdong, Jiangsu, and Zhejiang have shown significant growth, with Guangdong ranking first in terms of exports.
In terms of imports, in the first half of this year, China's medical device imports reached US\u2009171.16 billion, an increase of 5.96\u2009% year-on-year.The main sources of imports remain the United States, Germany, and Japan, accounting for 53.39\u2009% of total imports.Imported products mainly include catheter consumables, in-vitro diagnostic reagents, and high-end medical equipment. In addition, the dependence on imports of core components and key raw materials remains high. Shanghai, Beijing, and Guangzhou are the main import cities for medical devices.
In-vitro diagnostics and massage health products show impressive performance
In the first half of this year, in-vitro diagnostic products became one of the medical device categories with the most significant export growth. To support global epidemic prevention, China's in-vitro diagnostic companies actively expanded their global business, and exports experienced explosive growth. COVID-19 antibody, antigen, and nucleic acid detection reagents related to the epidemic were favored by the global market, and the overall achievements of testing reagent companies were positive.
In the first half of this year, while exports of other epidemic prevention materials decreased, exports of COVID-19 diagnostic reagents still grew significantly. According to MCCIMEHP statistics, in the first half of this year, China's main in-vitro diagnostic reagents(HS codes 38220010, 30021500, 38220090)exports reached approximately US\u200979.09 billion, a year-on-year increase of 288\u2009%, with Fujian, Zhejiang, and Beijing being the main exporting provinces for in-vitro diagnostic reagents in China.
Among them,exports of self-testing reagents reached US\u200968.88 billion, accounting for 87.09\u2009%.The main export markets are concentrated in European countries and regions with special authorization for COVID-19 self-testing reagents, such as Germany and Austria. The large international market demand for COVID-19 self-testing products is the main factor driving the growth of COVID-19 diagnostic reagent exports.
With the normalization of epidemic prevention, many companies' conventional in-vitro diagnostic reagent products have resumed exports, and export volume is also increasing. Currently, the international market for in-vitro diagnostic reagents has expanded, and it has become an important task for Chinese companies to quickly establish overseas marketing channels and conduct localized promotion in export destinations.
Affected by severe homogeneity, fierce low-Price competition, and domestic volume-based procurement Price pressure, the "involution" phenomenon in the in-vitro diagnostic industry is serious, and overseas layout is of great significance to promoting industrial upgrading and enhancing industry competitiveness and influence.
According to data from the Markets and Markets report,the global in-vitro diagnostics market is expected to grow from US\u2009845 billion in 2020 to US\u2009960 billion in 2025, with a compound annual growth rate of 2.6\u2009%.
The global in-vitro diagnostic market is unevenly distributed, with developed economies holding the majority market share. For example, the United States accounts for 44.00% of the market share, Western Europe for 21.08%, and Japan for 9.00%, totaling 74.08%. Developed countries and regions have entered a relatively stable and mature stage, and their growth has slowed.
In developing countries and some regions, in-vitro diagnostics, as an emerging industry, are characterized by a small base and high growth rate. It is expected that in emerging markets such as India and Latin America,the growth rate of the in-vitro diagnostic market will remain at 15%～20%Emerging markets will become the main overseas battlefield for China's in-vitro diagnostic product companies.
Affected by the epidemic and stay-at-home measures, the global "home economy" has developed rapidly, and exports of household medical and healthcare products have grown strongly.In early 2020, affected by the epidemic, the export of household medical and healthcare products in China was once severely impacted. However, relying on years of continuous innovation, persistent accumulation, and development resilience of the industry, Chinese companies overcame difficulties, withstood pressure, and achieved outstanding results in export growth against the trend.
In the first half of this year, massage and healthcare appliances, as a traditional advantageous export product in China's medical and healthcare products, maintained high-speed growth in exports. According to statistics from the medical insurance association, China's exports of massage and healthcare appliances in the first half of this year reached US$29.60 billion, an increase of 86.77% year-on-year, with exports to 200 countries and regions. The demand for related products from the United States, Germany, South Korea, Japan, and the United Kingdom has shown a significant increase, and the market is still in short supply. It is expected that exports will reach US$50 billion this year.
The path to international development presents both opportunities and challenges.
In 2021, medical devices continued to dominate China's medical product exports. The international market's demand for China's epidemic prevention materials has decreased.
However, at the same time, the special authorization of self-testing reagents for the new coronavirus by European countries and regions has kept the international market demand for China's new coronavirus testing reagents relatively stable. The demand for related products such as pre-filled syringes for vaccines has increased, and the epidemic in India has led to a surge in demand for oxygen generators from China. Market cyclical fluctuations are significant. It is expected that medical device exports will decrease slightly compared to 2020, with total import and export volume around US$100 billion. The European Union and the United States, traditional export markets, as well as emerging markets along the Belt and Road, will be important export regions.
In the next few years, the international development of China's medical devices will face the following risks and challenges: On the one hand, due to the general slowdown in economic growth and market competition from epidemic prevention materials abroad, the international market's purchasing power for ordinary medical supplies has decreased.
On the other hand, affected by the epidemic, engineers and sales personnel are restricted from going abroad, which has had a great impact on in-depth overseas market promotion activities and After-sale Service for some large exported equipment, which is not conducive to business promotion and sales activities. In addition, the surge in demand for epidemic prevention material transportation will also lead to a decrease in the turnover speed of containers, resulting in increased logistics costs. The increase in raw material and labor costs and stricter supervision of cross-border e-commerce platforms will further squeeze the export profits of enterprises.
In the short term, under the influence of the epidemic, the global dependence on China's medical device supply chain has increased. In the long term,the COVID-19 epidemic has become a catalyst for reshaping the global medical device industry landscape. With the introduction of policies in various countries and regions to encourage the development of local industries, international competition will become increasingly fierce, and Chinese products will face greater competitive challenges in the global market. At the same time, China's emphasis on public health issues has further deepened, and the medical and health industry is ushering in a golden period of development, and the international status of China's medical and health industry will be further enhanced.
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