Trade costs have reduced to a certain extent

      In 2010, China's ASEAN tariff list, 98% of the pharmaceutical and health products have been included in the list of tariff, tariff relates to medicine and health products have 425, wherein the medical device Tariff No. 88 (the ASEAN countries to China Medical equipment products import tariffs vary). However, the need is clear that the special nature of pharmaceutical products based on controls, in the pharmaceutical industry, release zero-tariff policy effects will be a relatively smooth process. In addition, while some trade and investment facilitation measures will help reduce trade costs, but according to China - ASEAN Free Trade Area (hereinafter referred to as the FTA) related protocols, only by virtue of the certificate of origin in order to obtain tariff relief, this part of the added cost of doing business. Some companies reflect their overall cost of the ASEAN trade was reduced by approximately 10%.

The rapid growth of exports to ASEAN

      From 2005 to 2009, five years, bilateral trade between China and ASEAN medical devices is growing rapidly. In 2009, bilateral trade volume reached medical equipment $ 1.097 billion, the annual compound growth rate of 20.26%. Among them, the rapid growth of exports to ASEAN, imports remained stable growth. Thus, the bilateral trade surplus medical equipment continued to expand, in 2009 reached $ 603 million surplus, which indicates that China's medical device product with respect to the product on the ASEAN market has a strong competitive advantage. 1 to February 2010, China's medical equipment exports to ASEAN $ 92,660,000, an increase of 45.42%.

      Analysis by product, medical dressings and medical equipment exports to ASEAN are two types of major products, related exports accounted for 73 percent of ASEAN's total exports of medical devices. It is noteworthy that, in 2009, China's exports to ASEAN medical dressings rapid growth, boosting the overall exports growth. However, medical equipment, disposable supplies and health rehabilitation supplies exports declined year on year.

Country market potential varies

      According to incomplete statistics, the scale of imports of medical equipment five major ASEAN countries (Singapore, Malaysia, Thailand, Indonesia and the Philippines) is about $ 4 billion. Among them, the ASEAN countries, Singapore is the largest national market, the scale of imports of medical equipment for about $ 1.8 billion. However, in recent years, demand for imports of medical equipment in Singapore showed a slight downward trend, and in 2009 by the financial crisis, and its demand for imports fell by 6.26%. Thus, Singapore is a relatively mature market, market competition is relatively stable.

      In the ten ASEAN countries, China's medical equipment the highest share of the Malaysian market, is 12%. Thailand, Indonesia and the Philippines are the most potential for future growth in the country market. On the one hand, these three countries in recent years, imports of medical equipment needs to maintain steady growth. According to the British trade research institutions (GTA) statistics, Thailand imported medical equipment market with an average annual growth rate of 5%, 21% in Indonesia, the Philippines was 12.59%. On the other hand, these three countries on the level of economic development and population size, they are in the ten countries of ASEAN in the upper level, the relatively high demand for health care, it is very interesting market. And Burma, Cambodia, Laos and Brunei market is relatively small, which is related to their level of economic development and population size.

      In recent years, with the population growth of the economy, increase the ASEAN countries, health costs, the demand for medical devices also showed growth. However, ASEAN medical equipment and medical equipment production capacity is limited, as large as CT, X-ray machine, a small wheelchair carts, earpiece, almost all rely on imports, therefore, Southeast Asia has become the world's medical device manufacturers competing for a new market.

The largest medical equipment needs

      According to GTA data analysis, medical equipment products is one of the largest ASEAN market demand for products, imports accounted for more than 50 percent of such products of ASEAN's total imports of medical equipment. Especially in Indonesia and the Philippines both countries in recent years, the demand for small and medium sized equipment is growing rapidly. Only ultrasound scanner, 2009, Indonesian imports increased by 80.33 percent year on imports of the Philippines grew by 53.79 percent year on year.

      Currently, diagnostic equipment market in ASEAN, or Europe, the United States, Japan manufacturers dominate the relatively low market share of China's enterprises, the competitive advantage is not very prominent. However, it is foreseeable, since facilitation policy of zero-tariff free trade zone and the trade, coupled with the advantages of bilateral geopolitical proximity, will enhance our product with respect to the advantages of European and American products. In addition, the development of China's domestic medical equipment industry, improve product technology and price advantage, is conducive to the European and American product substitution, especially monitors, B ultrasonic scanner, ventilators and some other mid-sized medical equipment, is expected to be in the ASEAN market greater opportunities.