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Copyright 2012 China Med Device ~ All Rights Reserved. http://www.chinameddevice.

com

Welcome to China Med Device Group


China Medical Device Group is dedicated to expedite the entry and the growth of
Western medical device companies in China by offering strategic and execution services.
Our team of bilingual and bicultural staff is located in Boston, Beijing, and Shanghai to
provide on the ground services. With a minimum of 10 year experience, our staff has
the in-depth functional knowledge, network of resources and capital to enable our
clients fast entry and long sustainable growth in China.

Product CFDA (previously SFDA) registration through top notch qualified registration
agencies among the hundreds of selections.

Distribution channel plan and management through 2000+ qualified and proven
distributors at national and regional levels across cardiology, surgery, diagnostic
imaging, rehab and sports medicine etc.
Market and competitive research with KOL, clinical societies, and hospitals C level
executives and industries.

Direct office and subsidiary setup in 80+ special economic development zones or
industry technology parks for added government and investment benefits.

Direct funding investment from a network of angel investors, strategic partners and
80+government supported incubator technology parks

Contact or email info@chinameddevice.com for a complimentary assessment of your
situation by one of staff with 10+ years of practical domain knowledge and execution
experience.

China Healthcare Market Overview


China has become the 2nd largest medical device market after Japan, and 1st biotech
investment in Asia. As one of the highest growth GDP countries, the government is
investing heavily in building the healthcare infrastructure on both the provider and
manufacturing development side. China will surpass Japan in the future.
Copyright 2012 China Med Device ~ All Rights Reserved. http://www.chinameddevice.com

Chinese medical device market is expected to grow ~17% y/y in 2012 on 12% y/y
growth in medical equipment and 25% y/y growth in medical consumables, largely
driven by: 1) purchasing budget growth in Class 3 hospitals; 2) county-level hospital
upgrade and expansion driven by government investments; and 3) a solid hospital
construction cycle in 2012-15.

The average life expectancy in China is 73 years. The maternal death rate from births
decreased from 47.7/100,000 to 31.9/100K. Fetal death rate reduced from 19% to
13.8% in the last eleventh 5 year plan. China government spends more than
5,000,000,000,000 Yuan at county, town and village level in hardware infrastructure
development.

On April 6th, 2009, there are two historical documents were issued by the governments:
About deepening medicine healthcare system improvement opinions and About
medicine healthcare system improvements short-term priorities and plans (2009-2011).
Of the 85,000,000,000,000, the government spent 50,000,000,000,000. The
government will increase spending from 17% to 27% as a society from 29% to 34% at
individual level. On an international level, usually the government and society spends >
70%. So China still has strong growth in health care expenditure, which will boost
demand for medical equipment.
In terms of healthcare provider structure, the weak areas are pediatric and geriatric
care, rehab, mental health care are severely lacking. For instance, there are only two
children hospitals in Beijing. Beijing Children Hospital annual outpatient visits reached 3
million per year, the peak daily visits reached >10K per day. More than 60 year old
reached 1,600,000,000.

In 2009 and 2010, government development renovation council allocated
4,000,000,000,000 to support 1877 county hospitals, 5169 town clinics and 2382 city
district healthcare centers and 11,250 remote area clinics constructions. China
healthcare system is predominantly government regulated and funded. Private hospitals
and insurances is a very small percentage. Chinas spending on medical devices is
relatively low, at $10 per capita. This is significantly lower than in Japan, where medical
device expenditures are at $165 per capita.

As a result, China is one of the highest growth emerging market in the world.
Copyright 2012 China Med Device ~ All Rights Reserved. http://www.chinameddevice.com







--Medical Institution Industry

On September 29, 2013, China (Shanghai) Pilot Free Trade Zone (FTZ) was formally
established, following the promulgation of The Overall Plan of China (Shanghai) Pilot
Free Trade Zone and Special Management Measures for the Foreign Investment Access
in China (Shanghai) Pilot Free Trade Zone (negative list)(2013). Medical institution
industry is not in the negative list and wholly foreign-owned medical institution is
allowed by the Overall Plan.



To additional information on then, visit us at
W: http://www.chinameddevice.com/
E: info@chinameddevice.com

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