Chinese economy


published: 20.11.2023

Investigating state support for China’s medical technology companies

Medical technologies are a key focus of China's industrial policy strategy and central to Beijing’s plans to move up the value chain. To spur on the development of local firms and promote self-reliance in this highly innovative sector, Chinese officials are steering research into key technologies and offering financial assistance to promising firms. In addition, biased procurement processes and regulatory barriers are limiting market access opportunities for foreign firms.

This MERICS study seeks to quantify the value of state support in China's MedTech sector. While data limitations obscure the impact of market access barriers, it shows that measurable forms of financial support directed to Chinese MedTech firms have grown about five times between 2017 and 2022. Beijing is facilitating the rise of increasingly competitive domestic players, posing a challenge for foreign firms both in China as well as abroad.