Related: Impact of the Financial Crisis on the Industry
The world is currently facing a financial crisis, this financial crisis is not the worst of the financial crises that have occurred in the last 100 years or so, financial market crises are a leading indicator of recession, but the healthcare industry does show good resilience to downturns in the past history. Meanwhile around the world, merger and acquisition activity in the healthcare sector remains strong. It is because of China's relative stability during the financial tsunami and the healthcare industry's resilience to shocks, coupled with the high profitability of the medical device sub-sector, that capital continues to pour into it.
Currently, there is a gap between China's medical device industry and that of developed countries, but the speed of development of China's medical device industry has impressed the world. China's newly developed medical devices are on the cutting edge of the international medical device industry. In the next few years, China will overtake Japan to become the world's second largest medical equipment market.
With the rapid improvement of R&D strength of domestic enterprises and the shift of market focus from high-tech to popularization, the competitiveness of domestic products is gradually increasing, providing a rare opportunity for domestic manufacturers to expand their markets. It is foreseeable that the future development of China's medical device industry has a huge space.
In addition, in the background of the world financial crisis is becoming more and more serious, in order to resist the negative impact of the international economic environment on China, the State Council executive meeting held on November 5, 2008, put forward the implementation of a proactive fiscal policy and moderately loose monetary policy, the introduction of ten more powerful measures to expand domestic demand. 2008, November 23, the Ministry of Health issued a circular in the country's new 100 billion yuan central investment arrangement, arrange special investment of 4.8 billion yuan to support the construction of rural health service system. "The 4.8 billion yuan of new investment in 2008 added 1.5 billion yuan of investment in rural medical equipment, plus 6.771 billion yuan of new investment in rural medical equipment in 2006, totaling 8.271 billion yuan of incremental investment in the two parts of the plan. This incremental 8.271 billion is mainly invested in rural medical equipment procurement, time is mainly concentrated in 2008-2010. Low-end medical equipment will face huge demand, become the first to benefit from the industry.