How To Sell Your Medical Products To China

China’s National Health and Planning Commission (NHPC) published a new policy this week stating the purchase of any products or services must be denominated in RMB and the purchase must be made from a Chinese company.

If you force the hospital to pay in dollars for a direct purchase from a foreign manufacturer, you are not likely to succeed in selling your product or your services to a Chinese government owned hospital. Here are the following levels of “local” for making a sale in China, starting with the least local:

  1. No China presence.
  2. Your company is in the United States, but it has a China distributor or sales agent that imports the product into China and then sells it to the Chinese hospital in RMB.
  3. You form a China joint venture and that company sells your U.S. made products to China’s hospitals.
  4. You form a China WFOE and that company sells your U.S. made products to China’s hospitals.
  5. You form a China WFOE and that company uses a domestic Chinese distributor or sales agent to sell your product to China’s hospitals.
  6. You form a China WFOE and that company actually makes your medical products and sells to China’s hospitals.
  7. You form a China WFOE and that company actually makes your medical products and uses a Chinese distributor or sales agent to sell your product to China’s hospitals.
  8. You form a China joint venture and that company actually makes your medical products and sells them to China’s hospitals.
  9. You form a China joint venture and that company actually makes your medical products and uses a Chinese distributor or sales agent to sell your product to China’s hospitals.
  10. You license the manufacturing of your product to a Chinese manufacturer.
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