AusBiotech has launched its guide for Australian medical technology companies seeking to engage in China.
The guide, which was developed with funding from the Australian Trade Commission, was launched at AusMedtech in Melbourne.
While originally conceived to provide information about intellectual property management in China, its scope was broadened during the research phase to include information on the business, cultural and regulatory context, as well as other information that a medical technology company might need to consider when seeking to engage in China.
The advice contained in the guide is intended to "serve as a starting point for Australian companies interested in one or more of four identified strategic pathways to work in and with China," it says.
The pathways are: R&D partnerships; selling to China's domestic market; attracting investment from Chinese interests; and, sourcing manufacturing.
In terms of the rationale for engaging in China, the guide says that the sheer magnitude of the market opportunity is difficult to comprehend.
"China is the world's most populated country and is ~50 times the size of Australia at almost 1.4 billion people," it says. "It accounts for 19 per cent of the global population. The population of the capital, Beijing, alone almost matches the population size of Australia."
It continues, "By 2020, China, surpassing the United States, will have the largest economy in the world. By 2025, China's nominal GDP will hit $38.563 trillion. This economy will be characterised by high consumption spending, strong currency rates, and favourable trade ties."
The guide recommends companies take a long-term view when it comes to engaging in China, reflecting the importance Chinese put on relationships.
In terms of its growing health care market, which it says is growing at "an astonishing rate", the guide says increasing government spending on infrastructure and services is driving uptake.
"Beyond the growth in government spending, patients' ability to afford better medical care has increased," it says. "Driving this investment is the country's rapidly-increasing middle class, and its ageing population, which are both increasing the demand for healthcare."
The guide provides guidance on the range of issues and a planning checklist for companies, covering planning, products and services, strategy, sales and marketing, and financials.