China VBP To Expand Further in Medical Equipment: Industry Leaders Will Prevail

Research evidence excerpt

China VBP To Expand Further in Medical Equipment: Industry Leaders Will Prevail

China (PRC) | Medical Supplies & Devices EquityJulyResearch20, 2026

China VBP To Expand Further in Medical

Equipment: Industry Leaders Will Prevail

China recently introduced a nationwide VBP on devices to be rolled out

in 2H26-1H27. We exp. higher VBP penetration (currently 20% of total),

driving mkt consolidation & shr gains for industry leaders. Pricing pressure

for imaging should be manageable as key categories are already in VBP;

surgical robots could benefit if supported by reimbursement & quota

reforms. MNCs: GEHC & SHL view the policy as an evolution of existing

regional VBP; PHIA remains cautious.

VBP on medical devices: China's Health Committee recently announced a nationwide

centralized medical device procurement policy (VBP). The policy establishes a 3-tier

framework: national procurement for Class-A large-scale equipment (e.g. RT systems at

>Rmb50mn), provincial procurement for Class-B devices (e.g. PET/CT, PET/MR, laparoscopic

surgical robots, & RT at Rmb30-50mn), & municipal procurement for other devices. Provinces

must complete at least 1 round of Class-B procurement by YE26, & launch municipal pilot

programs by Jun '27.

Quality Focus; LT Share Gains for Industry Leaders - We think the policy may create some

NT rev pressure, but should ultimately benefit high-quality manufacturers through mkt shr

consolidation. As the policy explicitly emphasizes product quality & value in the procurement

process, VBP penetration is likely to increase leaders' mkt shrs. Based on China hospital

procurement data, VBP accounted for 19.4% of imaging/RT procurement value in 1H26 (vs.

17.3% in 2025). 1H26 VBP penetration in categories: MR at 20.2% (vs. 17.4% in 2025); PET/

CT at 14.7% (vs.