AusBiotech has launched the ‘Guide for Australian medical technology companies seeking to engage in China’ (the China Guide), to support small to medium-sized Australian medical devices and diagnostics companies that are seeking to engage with and in China.
The China Guide is part of a larger project ‘that seeks to facilitate medical devices and diagnostics trade and partnership with China by breaking down the information barriers for Australian companies. This Guide and the broader project are supported with funding from the Australian Trade Commission as part of the Asian Business Engagement (ABE) Plan and will result in much-needed information about intellectual property (IP) management and the types of business structures suitable for Australian companies in China.
The Australian medical technology industry consists of an estimated 500 – 800 companies that are seeking opportunities in global markets and are increasingly seeking support to enter Asian markets, specifically China. Most of these companies are micro or small enterprises with a turnover of less than $2 million, with limited capability to assess overseas markets independently.
The China Guide provides information about IP management, information on business structures, the business, cultural and regulatory context and other information that a medical technology company may consider when developing their business plan for China. The China Guide does not intend to take the place of professional advice, but it is intended as a starting point for Australian companies interested in China.
China is one of the fastest-growing and remarkable medtech markets in the world. Its astonishing growth is largely attributable to the country’s increasing government spending, underpinned by robust economic growth, which has led to improved healthcare access and infrastructure, as well as the ongoing expansion of public insurance coverage and infrastructure for less developed parts of the country. Beyond the growth in government spending, patients’ ability to afford better medical care has increased - driven by the rapidly-increasing middle class - and an ageing population. It is also a complex and fast-changing environment, and most importantly it is a very different business environment to that of countries like Australia.
The Guide is delivered via AusBiotech’s AusMedtech, the national industry group that represents the medical technology sector and is supported by generous in-kind support from major partners FB Rice and Deloitte. The project was informed by a select advisory committee of partners that also included: The Burnet Institute, Quintiles, L.E.K. Consulting, Admedus Ltd, Duncan Hart Consulting, China BlueSky Partners and Brandwood Biomedical.
With the November (2014) historic conclusion of negotiations for the China-Australia Free Trade Agreement (ChAFTA), the foundation is laid for the next phase of an economic relationship between Australia and China.
The Guide can be found on the AusBiotech website or printed copies may be requested from admin@ausbiotech.org
The views expressed herein are not necessarily the view of the Commonwealth of Australia, and the Commonwealth does not accept responsibility for any information or advice contained herein.