China Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in china, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Healthcare
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China is the world’s second largest healthcare market with an estimated value exceeding $1 trillion in 2024, and over $1.5 trillion by 2029, with 60 percent of health expenditures currently coming from the government. Rising disposable incomes, improved accessibility to medical services and products, a rapidly aging population, and rising incidence of chronic disease, have all contributed to a growing market for innovative healthcare services and products. This trend has been further accelerated by the “Healthy China 2030” initiative, which has provided government support for further healthcare market expansion. 

Public hospitals remain the dominant buyers of medical products and services—in part because many Chinese regard the public hospital care system as better and more trustworthy than private hospital and clinic alternatives. In 2024, China had over 40,000 hospitals, which offered over 8 million beds. Among them, public facilities provided 70.2 percent of hospital beds and received 83.4 percent of patient visits. 

U.S. exporters should  be aware of policies in China that may impact their long-term plans, such as volume-based procurement (VBP), a policy that has drastically reduced  pharmaceutical and medical device manufacturers prices by pooling hospitals’ purchasing needs into a single, tender, and the use of diagnosis-related group (DRG) /diagnosis-intervention packet (DIP), a modified pricing mechanism based on the internationally recognized DRG to improve hospitals’ performance management. These two initiatives have significantly lowered the prices that companies are able to charge, cutting prices in some cases by over 95 percent.  Additionally, public hospitals are now facing increasing pressure from the central and local governments to limit their procurement of imported medical products.  An ongoing, multi-year crackdown on corruption in the healthcare sector has reportedly ensnared over 40,000 individuals and led to increased regulatory scrutiny related to procurement, healthcare service provision, and development and marketing of pharmaceuticals.

Leading Sub-sectors 

Medical Devices 

The medical devices sector remains an important market for foreign businesses, especially for high-end and high-tech medical devices.  According to BMI, the medical device market in China is expected to have a compound annual growth rate (CAGR) of 8.9 percent between 2024 and 2029, with the market size reaching $55.2 billion by 2029.  Imports of medical devices comprised 12 percent of China’s market, while U.S. suppliers accounted for 25.5 percent of China’s medical device imports in 2023, valued at $5.4 billion.  Diagnostic devices and consumables comprised nearly 50 percent of U.S. medical device sales to China in 2023.  Opportunities for U.S. companies include digital CT scanners, digital x-ray machines, electrocardiography (ECG), electroencephalography (EEG), electromyography (EMG), MRI equipment, and ultrasound scanners.  US firms are also competitive in skull implants, in-vitro diagnostics (IVD), immuno-diagnostics, and point-of-care testing (POCT). Additionally, U.S. companies are leaders in orthopedics including joint-related and spine-related products. 

Pharmaceuticals 

China’s pharmaceutical market reached $282 billion in 2023 and is expected to grow by 7.8 percent reaching a value of $298 in 2025. China surpassed Canada and the Netherlands, becoming the United States’ largest export destination of pharmaceutical products (HS code 30). U.S. companies’ highly innovative drugs continue to be sought after in China and worldwide. China’s pharmaceutical imports are expected to reach $66.5 billion by 2029, with a five-year compound annual growth (CAGR of 8.1 percent based on BMI’s forecast.  Innovative drugs that ease China’s disease burdens, such as from cancer and cardiovascular ailments are especially in demand.  An aging population and changing lifestyles in China have brought about a rise in non-communicable chronic diseases such as diabetes, cardiovascular disease, cancer, and heart disease.  Drugs that can treat these growing chronic diseases will be in increasing demand. However, opportunities for U.S. SME pharmaceutical companies are limited since leading Chinese pharmaceutical companies and multinational pharmaceutical companies (including those from the U.S.) dominate the market.  Additionally, many SMEs find the National Medical Products Administration (NMPA) registration and the National Reimbursement Drug List (NRDL) listing process to be time consuming and cost prohibitive.

Nutritional Supplements 

China is the world’s second-largest nutritional supplements market, second only to the United States. According to Euromonitor, in 2023, China accounted for 19.7 percent of the global market, behind the United States’ 32.5 percent. Moreover, China’s nutritional supplements market is expected to remain important for U.S. exporters. According to iiMedia Research and Frost & Sullivan, the market for healthy and functional foods in China has increased to about $49.6 billion in 2024 and is expected to reach $51.4 billion in 2025.  Several factors have contributed to the growth of China’s nutritional products market, including increasing health-conscious behavior, rising incidence of lifestyle diseases, rising per capita GDP, shifting trends towards preventive healthcare, use of botanicals for medicinal benefits, and the growth of e-commerce.  Regulated by the State Administration for Market Regulation (SAMR) and the National Health Commission (NHC), nutritional supplements must be approved by the State Administration for Market Regulation (SAMR) before being sold in stores.  Three main sales channels exist: direct sales, e-commerce, and pharmacies.  Given the concerted efforts to facilitate these activities by lowering administrative requirements from SAMR—including eliminating the need to establish a legal entity in China, and less stringent customs and labeling requirements—the e-commerce channel has proved attractive for many U.S. companies.  

Senior Care 

China’s 2024 national census indicated that over 220 million people in China are aged 65 or older, accounting for 15.6 percent of the total population. According to the Ministry of Human Resources and Social Security, the accumulated balance of China’s primary state pension funds—covering urban employees and rural residents—exceeded 7.45 trillion RMB (approximately $1.04 trillion USD) by the end of 2023. These funds are estimated to underwrite 60 to 70 percent of the country’s senior care expenditure. Since 2011, the Chinese government has promoted the development of private pension schemes; however, adoption remains limited, with most individuals relying on basic public insurance and out-of-pocket payments for medical expenses. Relatively few elderly Chinese reside in nursing homes—approximately 1 percent as of 2024—resulting in senior care demand being concentrated on home-based and intermediate care services. This trend is driving growth in both professional nursing and rehabilitation services, as well as smart technologies and solutions that enable seniors to age in place.

Resources

  • China Hospital Construction Conference – Chengdu, May 17-19, 2025
  • Sino-Dental – Beijing, June 8-11, 2025
  • CPhl China (China Pharmaceutical) - Shanghai, June 19-21, 2025
  • China International Medical Equipment Fair (CMEF) - Guangzhou Sept 26-29, 2025
  • DenTech China – Shanghai, October 23-26, 2025
  • Dental South China – Guangzhou, March 3-6, 2026
  • China Association of Clinical Laboratory Practice (CACLP) Expo – Xiamen, March 2026
  • China International Medical Equipment Fair (CMEF) - Shanghai, April 2026