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Information sought on medical equipment
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A CHINESE industry group is collecting information on the pricing and business practices of foreign and local makers of medical equipment for the government in a survey that sources said was unusual in the amount of detail it sought.
Two industry sources who have seen the questionnaire said it was unclear if regulators were about to investigate China’s US$20 billion medical devices market following multiple probes into corruption and possible price fixing in the pharmaceuticals sector.
But one of the sources, an executive at a foreign biotechnology firm, said the questions on pricing led him to believe one of its aims was to determine if companies were setting minimum prices for vendors, which could violate China’s 2008 anti-monopoly law.
The survey was commissioned last month by the Ministry of Commerce’s anti-monopoly bureau, said Xu Shan, deputy director for international cooperation at the government-backed China Association for Medical Devices Industry.
Xu said she was not aware of any formal investigation into the sector. While the association’s survey did not ask questions about corruption, Xu said regulators would likely focus on such practices at some stage.
“In the future, there will be even stricter rules,” Xu told reporters, declining to elaborate. “The rules should likely not be restricted to price fixing, but will also target commercial bribery,” Xu added.
The association represents some 3,000 companies that make medical equipment or health care items. The survey was sent to all members but not all had responded, Xu said.
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