Domestic demand for "localization" of medical devices: Taiwan's medical device manufacturers are affected

According to Taiwan media, mainland officials pushed "Made in China 2025" for medical devices last year, intending to break the monopoly of high-end medical device overseas imports, and import substitution with "home-made manufacturing". This policy has quietly fermented in the first half of this year. The small medical device manufacturers have been hit hard, and the industry expects that in the future, Taiwan's medical devices will be accelerated to move to the mainland.

According to a report by Taiwan’s United News Network on August 16, the mainland official launched the “Made in China 2025” plan last year. The strategy is to gradually increase the proportion of local homemade products in high-end medical devices this year. The first step is to include “domestic products”. Public hospitals have priority in purchasing lists and take technical barriers to imports.

According to the report, this policy has spread to major medical institutions in mainland China since this year. Most of the state-run medical systems have complied with their requirements and made adjustments in the procurement procedures to ensure the product advantages of the “red supply chain”. The home has caused a significant impact on the mainland's domestic demand.

Domestic demand for "localization" of medical devices: Taiwan's medical device manufacturers are affected

Take Taiwan's artificial bones leading enterprise joint orthopedics as an example, the first quarter profit performance is bright, but the second quarter has turned sharply. The industry believes that it is mainly affected by "Made in China 2025". Lin Yansheng, the chairman of the joint committee, pointed out that the current bidding of major medical institutions in mainland China is limited to “two international leading brands and two brands made by mainland China”, while the joint orthopedic brand is in the middle position, and it is also made in Taiwan. Therefore, it was excluded and “lost many bidding opportunities”.

Taiwan’s operating room equipment leader, Mingji Medical, suffered an impact at the beginning of the year. The net profit after tax in the first half of the year was 425.4% compared with the same period of last year. It was also blocked by the mainland medical institutions.

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