MedTech in China: Medical Equipment Market and Opportunities for Cooperation with Russia

Local manufacturers are moving from the localization of basic equipment to advanced systems, AI, and international expansion. For Russia, this opens opportunities for equipment supplies, production localization, and engineering cooperation.

China’s MedTech sector can no longer be viewed solely as a sales market or a source of low-cost equipment. Local companies have established strong positions in a number of segments, are moving into more technologically advanced categories, and are expanding their international sales. At the same time, localization remains uneven: Chinese brands already lead in digital radiography, patient monitoring, and certain areas of laboratory diagnostics, while MRI, angiography, radiation therapy, high-end endoscopy, and critical components remain dependent on foreign technologies.

In its new research, ED Group examines market dynamics, government support, the maturity of key segments, the international expansion of manufacturers, and practical models for cooperation with Russia.

Key Research Findings

The market returned to growth after the 2024 correction. China’s medical equipment market grew from USD 39.4 billion in 2020 to USD 56.0 billion in 2023. In 2024, it declined to USD 48.7 billion, primarily due to a pause in hospital procurement amid anti-corruption inspections. Tender activity began to recover in late 2024, and the market reached USD 50 billion in 2025. By 2030, it is forecast to reach USD 67.7 billion.

China’s Medical Equipment Market, 2020–2030F, USD billion

Long-term demand is supported by demographic trends and the expansion of healthcare infrastructure. The population aged 60 and above increased from 267.4 million in 2021 to 323.4 million in 2025, while the number of visits to medical institutions reached 10.15 billion in 2024. The number of hospital beds increased from 9.45 million in 2021 to 10.30 million in 2024.

The government supports the entire equipment development cycle. Government policy combines support for R&D, accelerated registration of innovative medical devices, financing for equipment upgrades, and procurement advantages for locally produced products. Between 2015 and 2025, 390 innovative medical devices were approved under the NMPA’s special procedure, 86% of them Chinese. In 2024, 77% of equipment renewal projects did not require co-financing from hospitals, while investment in medical equipment is expected to increase by more than 25% by 2027 compared with 2023.

Starting in 2026, products recognized as manufactured in China receive a 20% price preference in public procurement. This further strengthens the position of local manufacturers and encourages localization.

Localization is increasing rapidly, but significant differences between segments remain. In the first half of 2024, Chinese companies accounted for 51.5% of open procurement of life-support systems, 46.0% of laboratory equipment, 25.6% of medical imaging equipment, and only 10.4% of radiation therapy equipment. The differences within medical imaging are even more pronounced: 59.1% in digital radiography, 30.2% in ultrasound, 28.7% in CT, 20.3% in MRI, 4.6% in angiography, and 0.2% in SPECT.

Share of Chinese Manufacturers in Open Medical Equipment Procurement in China, H1 2024, %

The next stage of localization depends on critical components. In CT systems, for example, the high-voltage generator, X-ray tube, and detector account for 60–70% of the equipment’s cost, while advanced versions of these components still remain significantly dependent on imports.

Competition is shifting from individual equipment to integrated systems. In 2025, United Imaging ranked first in China by share of new MRI installations, while its CT product line led the market in new installations for the third consecutive year. In endoscopy, Chinese companies are moving toward 4K, 3D, and fluorescence imaging; in laboratory diagnostics, toward total laboratory automation; and in patient monitoring and intensive care, toward integration of equipment with software and patient data.

AI is becoming part of the equipment itself. China’s AI medical device market reached RMB 9.64 billion in 2024, and by September 2025 the NMPA had approved 142 such devices. Development is moving from standalone algorithms toward systems embedded in imaging, laboratory diagnostics, intensive care, and clinical workflows.

Exports are growing, but require a local presence. China’s exports of medical instruments and equipment increased from USD 9.36 billion in 2016 to USD 20.9 billion in 2025. Russia accounted for around 4% of Chinese exports in 2024, or approximately USD 0.6 billion. For 10 of the 15 leading exporters analyzed, overseas markets generated more than half of their revenue in 2025.

Share of Overseas Revenue of Leading Chinese Medical Equipment Exporters, 2025, %

What This Means for Russian Companies
The Russian market simultaneously requires equipment renewal and greater localization. Across the five largest segments, the value of contracts under Federal Law No. 44-FZ reached RUB 129.2 billion in 2025. At the same time, localization remains uneven: Russian manufacturers account for 90% of X-ray equipment, 28.2% of ultrasound equipment, and only 2.1% of CT systems in public procurement in 2024. The share of Chinese CT systems in new installations increased from less than 1% in 2021 to 17% in 2025.

The most promising cooperation model is not simply replacing one foreign supplier with another, but moving from equipment supplies toward localization and competency transfer. For mature segments, the priorities are equipment supplies, assembly, and service centers; for CT, MRI, endoscopy, laboratory automation, ventilators, surgical robots, and hemodialysis equipment — joint localization and engineering cooperation; and for early-stage technologies — technology scouting and pilot projects. Another area is the integration of Chinese digital solutions and AI with Russian clinical and regulatory adaptation.

ED Group helps Russian companies identify and assess Chinese manufacturers of medical equipment, components, and digital solutions; evaluate their technological capabilities and localization potential; and organize negotiations and the exchange of technical requirements.