From "made in China" to global leader: the new face of Chinese MedTech

In Medtech, "Made in China" has long ceased to be a sign of low quality.

The trend is also visible on the stock market: according to the Financial Times, Hong Kong's Hang Seng Biotech Index recorded an 80% increase in 2025. This result has roots in the mid-2010s, when Beijing introduced reforms that made it easier for biotech companies to raise capital and innovate. These changes, combined with the speed and lower costs of drug development and clinical trials, have given the sector extraordinary momentum.

According to an analysis by Bloomberg News, the number of new drugs developed in China rose to more than 1,250 last year, far surpassing the European Union and getting closer to the United States (which accounts for around 1,440). The surge has been striking: when China began reforming its drug-regulation system in 2015, it had only 160 compounds in the global innovative-drug landscape, less than 6% of the total.

"Rapid improvements in product quality, global expansion, and international collaboration are among the most significant trends we have observed over the last 10 years." Huiguang Liu, CEO and Co-founder of VCBeat, China's leading media and research organization focused on health technologies, tells LumiMed. Since 2014, VCBeat has tracked trends such as digital health, medical devices, and innovative drugs, connecting companies, investors, and institutions and providing data and analysis. "The quality of healthcare products has improved dramatically, moving from basic functionality to nearly world-class standards and in some areas reaching global leadership." Liu continues, "The recent wave of acquisitions or licensing deals by multinational companies involving Chinese innovative drug pipelines is proof of this: China has become the world's largest market for Business Development deals in innovative pharmaceuticals. In medical devices, we expect similar growth in international partnerships over the next three years."

Medical devices are currently one of the main friction points between China and the European Union. The European Commission has taken a firm stance with Regulation No. 1197/2025, which bans Chinese medical devices from participating in European procurement tenders worth more than €5 million. The regulation is seen as a response to Beijing's protectionist strategy: more than 87% of Chinese public tenders restrict the purchase of imported medical devices, favoring domestic products.

"In high-end medical devices, European companies still maintain a significant advantage. However, in many other areas, Chinese companies have made rapid progress in quality and are increasingly capable of competing with their European counterparts." says Liu, "This poses a greater challenge for some European companies trying to enter the Chinese market. In our view, China remains very open to high-quality global products, recognizing that only by welcoming the best can its own sector continue to improve."

This dynamic is one of the factors behind China's rise in pharma. "Many of the best Chinese entrepreneurial teams share a similar background: undergraduate studies in China, master's or PhD in the United States or Europe, and years of experience in multinational companies. This global mindset is particularly evident in innovative pharmaceuticals. Four or five years ago, when Chinese or international investors assessed biotech investments in China, one of the key factors was whether the team aimed to develop world-class products. For this reason, many companies began conducting parallel clinical studies in China and the United States from day one."

China's biopharma boom is deeply intertwined with international collaboration, from which global investors and multinational pharmaceutical companies have benefited greatly. "Since 2015, international venture-capital funds have systematically invested in Chinese innovative-drug companies. Many of today's active biotech firms received their initial funding from foreign investors. Between 2018 and 2021, Chinese innovative-drug companies raised even larger financing rounds. Between 2024 and 2025, multinational pharma companies began vigorously aggressively pursuing Chinese innovative pipelines at scale."

The latest China International Import Expo (CIIE) highlighted a new trend: multinational and Chinese medtech companies are now partnering on broad joint product-development projects, marking a shift toward deeper and more strategic collaboration. For Chinese health-tech companies, the EU market is highly attractive, as it is the largest market outside the United States. "From a branding perspective, it provides an excellent platform to strengthen the global reputation and brand value of Chinese medtech products. In addition, the European Union hosts a highly diversified corporate landscape, offering numerous opportunities for technological and commercial partnerships."

Looking ahead, according to Liu, two major themes are emerging in China's domestic pharmaceutical market. The first is cost reduction: "China is facing increasing pressure on its national health-insurance system, resulting in downward pressure on prices for both drugs and medical devices. This requires companies to build strong capabilities in cost control and efficiency." The second is the rise of original and innovative drugs: "Chinese national policies continue to promote the development and adoption of local innovations."

Regarding exports, Liu expects rapid growth in the coming years. "However, this expansion will likely take two forms: on the one hand, deeper collaboration with multinationals; on the other, a growing number of independent local market-development initiatives. This phase will be crucial for enabling Chinese pharmaceutical companies to establish and strengthen their presence as global brands."

LumiMed's original interview is in Italian. Click to read: Dal "Made in China" al global leader: il nuovo volto del Medtech cinese