(Yicai) May 16 -- The continuous shifts in the international trade environment have brought new opportunities to China's medical device industry, with tariff hike risks prompting domestic and foreign firms operating in the country to increasingly select local parts suppliers.

Under the risks of rising tariffs, "medical equipment makers need to find key suppliers in China, which presents a good opportunity for us to enter global supply chains of multinational medical equipment companies," Cheng Peifeng, founder of Yisheng Micro-Nano Medical Technology, told Yicai at a recent industry forum.

Wuxi-based Yisheng Micro-Nano focuses on researching, developing, and producing ultrasonic transducers and probes, with its new 6F imaging interventional catheter used in precision surgeries. However, the domestic market space for Chinese firms was limited due to the long dominance of global rivals, including Johnson & Johnson and Abbott Laboratories.

"It was originally very difficult to compete with top overseas suppliers," Cheng said. "But amid trade frictions and uncertainties, customers are considering using local alternatives with good product quality, which provides us with new opportunities."

After the price increase of European and US-made computed tomography tubes, the vacated market share will be filled by Chinese companies, said Jin Xin, general manager of Xinhong Electronics. "The better the quality of domestic parts, the stronger their competitiveness in the international market will be."

Domestic and foreign terminal equipment manufacturers in the Chinese market previously preferred to purchase imported CT tubes, Jin pointed out.

The localization rate of low-to-mid-end CT tubes used in the Chinese CT equipment market was around 30 percent to 40 percent in 2023, while 85 percent of high-end tubes were imported, according to a brokerage analysis report.

However, Chinese companies should not be content with the market opportunities arising from the increasing tariffs, Cheng noted. "The deciding factor for competitive success or failure remains material and technological innovation, so domestic firms need to achieve competitive advantages via continuous innovation," he said.

Regarding the trend of overseas medical device giants, including GE HealthCare, Philips, and Siemens Healthineers, actively promoting localization in the Chinese market in recent years, Cheng says this is a key reason they maintain a favorable position in China. "Otherwise, their domestic rivals will quickly catch up and surpass them," he pointed out.

Editors: Tang Shihua, Martin Kadiev