On Dec 18, ChinaMed Device, LLC is interviewed by Bloomberg on European effects of U.S-China Trade War. Other interviewees include Goldman Sachs, BS Global Wealth Management, and European Union Chamber of Commerce in China, etc.
The Bloomberg article can be found HERE.
Deteriorating Trade War
China’s tit-for-tat tariff plans make U.S medical devices much more expensive. The 2nd batch of tariffs, announced by China State Council on August 3, included number of medical consumables, imaging equipment, and IVD reagents. Among those, X-ray contrast agents, X-ray photographic film, surgical gloves and 6 others, are to be subjected at 25% taxes. MRI, X-ray machine, patient monitor and some ophthalmic devices are already on the 1st batch of tariffs, which has been taken into act since July.
Also, many medical equipments are designed and manufactured in the US and are exported to China, so it can be assembled, and then reexport to the US. Transporting between US and China will be subject to multiples times of tariffs.
Opportunities for Europe
At the wake of such trade war, European med-tech companies can take advantage. Medical devices are different from Apple or Caterpillar products which the US has sole ownership of technologies and patents; They are more like aircraft industry. If Boeing fails, Airbus will proceed.
In addition, more acquisitions can be foreseen as the big players in Europe feel the urge to divert their manufacturing and sales channel. Esaote, Italian-based imaging company was acquired by consortium fund from China for total 232.1 million Euro Dollar (18 billion RMB) in April. Esaote has its ultrasound group known as Biosound. Biosound has been a significant player in the China ultrasound segment, next to GE, Philips and Siemens in the past. China has established imaging equipment industry very quick but lacks the mid to high range imaging technology in MRI and ultrasound. This acquisition will also allow more European-generated technology and better-quality product lines in China market.
About ChinaMed Device, LLC
ChinaMed Device, LLC (www.ChinaMedDevice.com), a Boston headquartered company, provides regulatory and commercialization turnkey solutions for western medical device, IVD, CDx and combination products to enter China. Our NMPA (CFDA) regulatory services include: RA, regulatory strategy, regulatory submissions, clinical evaluation reports (CER), clinical trials, QA, GMP and post-market compliance. Our commercialization services include: market assessment research, reimbursement, partnership strategies, and distribution qualification. We are a NMPA (CFDA) certified legal agent with offices in Boston and Beijing enabling us to service our clients 24/7.