Eshare China Industry Insights blog

Tranalysis: Import analysis of Cardiac Pacemaker in China 2016


The import of Cardiac pacemakers to China is increasing. At the same time, the tariff of these will get abolished in a couple of years. What does this development mean to foreign suppliers?

 

The import volume of cardiac pacemaker accumulated to a total amount of 38,831 units in the first half year of 2016, according to China Customs. This represents an increase of total 6.7% with an overall value of $72.33 million. The value equals a 12.8% increase. According to the analysts of Tranalysis, the average unit price of imported cardiac pacemakers was $1863 with an annual growth of 5.8%.

 

Source: Pixabay

 

What are the main exporting countries for the pacemakers? The leading exporting nation is Singapore with a share of 35% of all imported cardiac pacemakers to China. The second and third rank are taken by Malaysia and Germany with a share of 19% and 18% respectively. The three countries amount to 72% of all exports to China.

 

The average unit price of cardiac pacemakers was $1566.05 for Singapore, $1652 for Malaysia and $2520 for Germany. As the unit prices differ greatly between Germany and the both Asian competitors, so do the price changes, compared to the period last year. Malaysia could experience a growth of 42%, while Germany had a decline of 7% and Singapore’s unit price decreased even 8%.

 

The USA, although not part of the top exporters, got an increase of 53% with a unit price of $2094.

 

Nevertheless, the WTO has negotiated an agreement, that will change the trading of cardiac pacemakers in China in the long run. The agreement is part of the information technology agreement (ITA), that will lower the tariffs for 20 kinds of medical devices and its components, effective since the first of July 2016. The final goal will be the total tariff abolishment in around three to five years.

 

Cardiac pacemakers, as one of the mentioned devices, and their components will be affected by the tariff reductions. While at present nearly all pacemakers on China are imported, due to high technologies barriers, the future reduction of pacemaker components may lead to an increased development of domestic medical products, according to Tranalysis research.

 

China has to around 600,000 people suffering from bradycardia, which represents a huge market and needs for cardiac pacemakers, domestic and imported.

 

 

LivaNova is the first Chinese enterprise, who began to produce cardiac pacemakers as a domestic competition in 2015 and more enterprises are likely to follow this example.

 

Foreign suppliers of medical devices should keep an eye on the development. The reduction of tariffs will on the one side reduce the purchasing costs and therefor increase the import volume from China, but on the other hand, it also reduces prices for components, so that Chinese enterprises have more motivation to increase their own production of cardiac pacemakers and reduce the dependence on import.

 

About Tranalysis:

 

Tranalysis is an intelligence and analysis provider on import/export data covering agriculture, chemicals, and life science industries in China. Tranalysis, founded in 2001, provides users not only large amount of import/export data in China, but also analysis to help monitor the market trends. Our clients include Monsanto, BASF, Syngenta, SinoChem and etc.

 

For more information about Tranalysis, please visit our website or get in touch with us directly by emailing econtact@tranalysis.com or calling +86-20-37616606.

 


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