Does China's leading place in the global MedTech market reflect the commercial reality?

In China, commercial 'reality' is not always what it seems

Privately however, some western companies are anxious about operating in and engaging too closely with a country where commercial 'reality' is not always what it appears to be.

Just as questions remain about the independence and transparency of state-owned technology companies such as Huawei, there are concerns over how autonomous, or profitable, many of its MedTech companies are, particularly those that rely on large amounts of government support. What chance does a small MedTech business from the UK have in the vastness of China?

This opacity also raises questions about whether businesses may be fronts for other interests. A country prepared to blatantly spy on sensitive UK interests, even in the UK parliament, is likely to be a challenge for an IP rich business to work with on a trusted partner bases.

China's centralised economy could hinder opportunities for international collaboration

In the competitive landscape of the Med Tech industry, collaboration and information exchange are crucial for fostering innovation and staying ahead. The centralised nature of China's economy and controls has the potential to hinder collaboration, creating a barrier to entry into global markets.

Top-down controls may also stifle the organic growth of ideas and entrepreneurial ventures that will be essential for the industry's evolution. The question arises whether China's MedTech companies can truly compete on a global scale when centralised governance hampers innovation and creativity.

Without local collaboration, western companies basing R&D and manufacturing facilities in China will require to bring their own researchers and scientists.

Whether qualified professionals from leading innovation hubs, such as San Francisco or Cambridge, will be inclined to relocate to China, with all of the restrictions on their freedom they will encounter, remains uncertain.

While India appears to be lagging behind China in the size of its MedTech, biotech and life science industries, it may be that, lacking the government-funded sweeteners on offer in China, its position is more grounded in commercial reality.

China might be able to demonstrate more impressive physical 'evidence' of the scale of its industry but, given that we are not privy to the size, or indeed the existence, of any tangible returns on its investments, it may be that India's more cautious approach will ultimately yield more sustainable long-term growth.

The size of China's delegation at the Medlab Middle East convention was certainly impressive and the energetic and personable sales reps appeared to be doing a fantastic job promoting their companies' products.

But whether all the talk of its booming MedTech industry in the bars and breakout areas were grounded in reality, or just Chinese whispers, remains to be seen.