How has the Chinese Government reacted to the discrepancy between foreign and Chinese producers of medical devices?

This trend has recently led the China National Health and Family Planning Commission to announce the launch of a policy favoring local producers of medical devices, as a means of bringing down rising health care costs. The policy includes a list of locally produced medical devices that are specifically recommended by the Commission and are to be given preferential treatment by public hospitals.

The new policy is especially focused on getting the larger “Tier-3” hospitals to strengthen their procurement of locally produced products. Notably, these larger hospitals also frequently handle purchasing for smaller hospitals. In this light, the latest trends in Chinese state policy for the medical device industry may dissuade foreign investors from a purely distribution-based approach to the Chinese market."