Carestream raising localization to gain larger market share
Move to boost innovation, production in high-end medical devices sector
US-based medical equipment manufacturer Carestream Health Inc plans to localize the production of a variety of items in China this year to secure a larger market share, a senior executive said.
The initiative aims to bolster the company’s domestic innovation and manufacturing capabilities in highend medical devices, particularly in the general radiology category.
Liu Jie, president for China of Carestream Health, said the company will base its operations on clinical practice, integrate global resources, and leverage China’s research and development strengths. This approach will enable the launch of a new product pipeline this year, further solidifying the company’s position in the Chinese market.
Carestream Health will continue to deepen its “Second Kitchen” strategy in China, promote the accessibility of high-quality medical care, and bring more value to health management, prevention and treatment of serious diseases.
Launched in 2018, the “Second Kitchen” project is designed to provide cost-effective products to emerging markets of nearly 6 billion people worldwide.
As China has been actively promoting the expansion and equitable distribution of high-quality medical resources to address regional disparities in healthcare access, Liu said the demand for imaging services in this market continues to grow, and so does the need for advanced imaging equipment in medical institutions. This has raised the bar for technological innovation in imaging equipment.
“Under such circumstances, we are committed to actively exploring paths of innovation and localization tailored to the Chinese context. By integrating advanced technologies, it is effective to optimize patient outcomes and advance the development of precision medicine in China,” he added.
Since entering the Chinese mainland market and establishing a presence in Shanghai in 1993, Carestream Health has invested more than $1 billion in the country. It currently runs one innovation center, two plants and 16 offices in cities including Shanghai and Xiamen, Fujian province, across China.
Liu said that China is not only a market for selling products for the New York-based company, but also an important source of innovation and a key engine of future growth.
To enhance the country’s appeal to foreign investors, China will remove restrictions on foreign participation in the manufacturing sector and continue to increase openness in sectors such as telecommunications and healthcare, according to an action plan released by the General Office of the State Council, China’s Cabinet, in mid-March.
To foster a more open, fair and competitive environment for multinational corporations, the government has said that efforts will be made to end practices that hinder fair competition and refine the bidding process, ensuring foreign companies can participate in setting standards and join committees under equitable conditions.
Due to a series of policies and initiatives aimed at expanding domestic demand and boosting confidence, Liu said that overall market demand in China will continue to expand, and the country’s advantage as a super-large market remains obvious. The basic trend of China’s economic recovery and long-term improvement has not changed, and China remains a key engine of global economic growth.
The executive said he believes the government’s emphasis on cultivating new quality productive forces will help China establish a beachhead in strategic emerging industries. These forces, characterized by digitalization and intelligence, are becoming increasingly prevalent across various sectors and are crucial for the nation’s high-quality economic development and its path to modernization.
“In the healthcare industry, the medical equipment sector in China requires support from all sectors in digital innovation to foster a thriving healthcare innovation ecosystem,” he said.
Carestream Health, he added, is committed to exploring innovation paradigms tailored to China by integrating global resources and local innovation capabilities, thereby advancing smart manufacturing in the country.
Wang Xiaohong, a researcher specializing in cross-border investment at the China Center for International Economic Exchanges in Beijing, said China’s extensive manufacturing clusters, strategic location in the Asia-Pacific region, and multiple free trade agreements with various countries will continue to offer advantages for multinational corporations seeking to leverage growth opportunities.
Moving forward, China’s comprehensive efforts to maintain stable economic growth are crucial in continuing to attract global capital, and enhancing the country’s appeal as a favored investment destination, Wang added.