More Good News?
Healthcare Demands Drive China's Medical Market, But U.S. Sales Lag Behind Europe
SAN DIEGO, May 8 /PRNewswire/ -- Sales of medical products in China are expected to be robust in 1998 despite a regional slowdown brought on by the 1997 currency crisis. Demand for better healthcare is driving the medical market which is predicted to grow by 20% during the next three years according to a report released by San Diego-based Golden Triangle Organization.
The report, ''1998 China Medical Market Report: An In-depth View of China's Pharmaceutical, Medical Device & Biotechnology Industries,'' found however, that U.S. medical equipment exporters are losing market share to European and Israeli companies offering attractive financing terms to Chinese hospitals.
''In 1997, U.S. sales of medical equipment in China was $121 million -- essentially unchanged from the previous year,'' said Deborah D. Miller, GTO's president. ''Exports from Finland, Norway, Germany and Israel increased at double-digit levels from 1996-1997,'' she added.
Attractive financing options no doubt impacted sales revenues of companies selling into China as access to capital remains one of the country's main challenges. Urban healthcare is in the process of being privatized and the Chinese government has shifted its focus to improving the healthcare needs of over 880 million rural Chinese. Chinese hospitals now face a severe funding shortage and are turning to exporters not only for equipment but financing.
''Offering financing options, whether from private sources or government- assisted loans, gives these companies a definite advantage when selling into China,'' said Miller.
According to Miller, the U.S, Export-Import Bank is working in conjunction with the U.S. Department of Commerce to educate commercial attaches and U.S. companies on Ex-Im Bank programs including tied-aid loan programs. The Ex-Im Bank first participated in a tied-aid loan program in 1996 when it granted a U.S. medical equipment distributor, U.S.-Chindex, an $8.4 million low-rate loan package to export medical equipment to China.
On a brighter note, U.S. exporters of laboratory equipment remain the leaders according to the 1998 China Medical Market Report. ''Chinese researchers universally prefer U.S. laboratory instruments, analyzers and reagents,'' said Miller who noted that their preference is based on high- quality and ease-of-use. Miller added that biotechnology is being targeted by the government as an emerging industrial sector which will continue to drive demand for this type of equipment.
|
