China Insights

GCiS shares a mix of China economy and business observations, industry articles based on recently published multi-client reports, infographics composed with public statistics and annual reviews of China demographics.

 

Notable Chinese Firms Emerging in Medical Robots Sector

Growing Need for Medical Robots in China

This article is based on a GCiS multi-client report: China Commercial Service Robots Market Research Report

China’s once abundant labor force has contributed to China’s recent decades of economic success, but in the coming decades the number of percentage of retirees relative to workers should increase substantially. According the People’s Daily, by 2050 China’s senior citizen population (those 60 years old and above) will grow to more than 30% of the total population, up from about 12% today. To meet the growing healthcare needs of this increasingly aging population, a number of medical robotics firms in China were recently founded and are starting to bring their products to the market.

According to a report by GCiS China Strategic Research (China’s Commercial Robotics Market), in 2016, the Chinese medical robots market is valued at RMB 791 Mn, up 34.4% from 2015. By 2021, the medical robot segment is projected to grow to at least RMB 2.2 Bn. From surgical to rehabilitation and homecare, robots look set to transform parts of the nation’s healthcare industry. Robots will be changing the way secondary and tertiary care is delivered and then slowly reshaping primary, home and community care. Already, surgical robots are helping the nation’s surgeons in high-end hospitals accomplish more precise and less invasive procedures. Sales of rehabilitation robots sales have boomed as hospitals improve their rehabilitation units, as per government policy. But the medical robots industry in China is still an emerging one, with many domestic players still in the product development and clinical testing stage.

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China's Lithium-ion Battery Market: Drivers behind it and its sustainability

This article is based on a GCiS multi-client report: China Lithium-ion Batteries Market Research Report

Introduction

The China Lithium-Ion Battery market has seen a massive surge in growth over the last years, with a CAGR in excess of 50% since GCiS’ previous research conducted in 2011. In our 2015 update, this rapid growth has been driven primarily by EV (Electric vehicle) subsidies. The result has been a shift in emphasis away from 3C (Computers, Cell Phones, Consumer Electronics) applications. Said EV applications have driven a surge in market size and the hype surrounding EV applications has led to the potential for substantial overcapacity.

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Are there Still Opportunities for Foreign Firms in China?

Yes, in Many Markets- But these are Shifting

When a few years back markets in China were growing by 10-20% per year or more, and a large number of MNCs were making double digit growth, most would say that opportunities in this market were strong.

Now the situation has changed noticeably, with slower growth in the economy as a whole, and much slower growth in the industries that were driving this growth. This comprises the construction market as well as heavy industries such as chemicals, machinery, cement, etc. This is compounded by real or perceived unfairness by the Chinese government in market access and subsidies to local companies, and lastly the fact that leading local firms have demonstrably improved their product and have closed the product/technology gap in a range of markets.

These combination of factors, along with the normal operating headaches, have led many foreign firms to conclude that their opportunities in China have taken a strong negative turn. Internal surveys by Amcham and EuroCham both echo this sentiment. Is this an accurate statement, or more a matter of perception?

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Compressed Growth in the China Market

This article is based on a GCiS multi-client report: China Stationary Air Compressors Market Research Report.

A large domestic market and a smaller export market are both features of the Stationary Air Compressor (SAC) market in China. The best prospects are for screw SACs, but with a general slowdown across all end-user industries, SAC suppliers should look to boost efficiency rather than grow.

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