GE Healthcare, which holds the largest share of China's medical equipment market, has announced it will develop middle and low-end products targeting China's rural market.
"We'll still focus on large cities, but we're developing new products and strategies to fulfill the medical needs of urban communities and rural areas," said Joe Hogan, president and chief executive officer.
China has around 800 million people living in rural areas. The government has outlined plans to build a "new socialist countryside" and will increase its investment in medical technology for rural areas.
"GE Healthcare looks forward to the challenges presented by this opportunity. We hope to provide inexpensive, high-quality products to help the government achieve its goal," said Hogan.
The first multinational health care company to enter China, GE Healthcare reported sales in China of more than 700 million U.S. dollars last year, about five percent of its global sales. Around 10 percent of the company's employees live and work in China.
"The company's sales in China will increase considerably in the coming years," said Hogan.
The company has established three factories in China and plans to invest more. "We will not only invest in factories and infrastructure, but also in training medical professionals," said Hogan.
Hogan said China was the fastest growing market in the world, and his confidence in GE Healthcare's China business was partly due to this fact.
In July, the Ministry of Health announced plans to tighten control over its medical equipment procurement to combat corruption.
The move will affect the development of multinational medical companies in China as most sell high-end expensive medical equipment. But Hogan believed the policies would favor GE Healthcare in the long term.
GE Healthcare was the first international company to venture into the middle and low-end markets in China, which would give it an advantage, Hogan explained.
He believed the government's policies on procurement would play an important role in combating corruption if they were effectively implemented.
GE Healthcare would comply with the policies and play an active role in supporting their implementation, said Hogan.
Source:佚名