Zero-tariff effect releases ASEAN as my fourth trading partner for medical devices

Business Club March 22 News In 2010, with the steady release of the zero-tariff effect of the China-ASEAN free trade zone, more medical device companies in China began to pay attention to the ASEAN medical device market. In 2010, the total value of China's imports and exports of medical devices to ASEAN reached US$716 million, a year-on-year increase of 17.64%. ASEAN has become the fourth largest trading partner and export market for medical devices in China.

According to Cai Tianzhi, director of the Medical Devices Department of the China Chamber of Commerce for the Import and Export of Medicinal Products, with the formal establishment of the China-ASEAN Free Trade Area in 2010, China’s import tariffs on most ASEAN products have fallen to zero. Countries such as Indonesia, Thailand, Malaysia, and the Philippines also have a zero tax rate on 99% of China's medical device products. Other ASEAN countries have also significantly reduced their import tariffs on medical device products in China. This has created a good balance of import and export trade between the two sides. Development Environment. However, due to the special nature of the supervision of pharmaceutical products, the release of zero-tariff effect is a relatively stable process. The bilateral medical equipment trade situation in 2010 also reflected this feature.

China Chamber of Commerce for Import and Export of Medicines and Health Products According to the latest statistics from China Customs, in 2010, China’s medical device imports to ASEAN were US$179 million, an increase of 11.77% year-on-year; exports to ASEAN medical equipment were US$537 million, a year-on-year increase of 19.75%. The trade surplus reached 358 million U.S. dollars. The increase in exports was significantly higher than the increase in imports, which reflects that China's medical device products have stronger competitive advantages than similar products in ASEAN countries.

The share of medical equipment in China's five major ASEAN countries (Singapore, Malaysia, Thailand, Indonesia, and the Philippines) is about 9%. There is still much room for growth.

In 2010, China had 4032 enterprises for medical device export business in ASEAN, and the number of enterprises increased by 561 compared with 2009, indicating that the ASEAN market has attracted the attention of more domestic enterprises.