China’s health industry has had a profitable decade thanks to significant government investment in order to meet heightened demand and a rapidly aging population. The market reached RMB 10 trillion (approximately $1.5 trillion) in total revenue by 2021. With the ambitious Healthy China 2030 initiative in place, which aims to expand the market to RMB 16 trillion (approximately $2.4 trillion) by 2030, China’s healthcare sector is set to continue its upward trajectory. One of the most dynamic segments within this market is the medical device industry, which has solidified its position as the second-largest in the world, just behind the United States. In 2022, the market size for medical devices in China hit RMB 958.2 billion (approximately $142.4 billion) and has maintained a compound annual growth rate (CAGR) of 17.5% over the past seven years. China’s medical device industry is diverse, encompassing sectors such as equipment (including instruments and materials), high-value consumables, low-value consumables, and in-vitro diagnostics. Of these, medical equipment dominated the market in 2021, accounting for about 60% of the total market share, or over RMB 500 billion (approximately $77.5 billion). Experts expect the market to maintain its momentum, with projections indicating a continued growth at a CAGR of 10.9% between 2020 and 2025. Despite this growth, the Chinese medical device market remains dominated by foreign companies, with major players like GE HealthCare, Siemens, and Philips leading the pack. However, this dominance is gradually being challenged. Research from Deloitte suggests that the market share of foreign companies has decreased from 80% to 70% in the decade leading up to 2019. This trend is expected to continue as domestic companies become increasingly competitive, bolstered by government support and significant investments in research and development. The consolidation of the industry is another notable trend as larger domestic companies gain more ground.