Health care system in China
China is among the most significant medical device market in the world; therefore, in the next year, we project to have a market growth of our product in china despite competition from the domestic diagnostic industries. Since the aging Chinese population is growing rapidly in the next three years, our company will have increased our capacity for production since our product demand will have increased. Due to our high- tech medical devices product, which is highly demanded by clinics and hospitals in China, our decision to have put up a new second plant in another province in China to be able to increases production of our product. China has the reforms of the FYP Five Year plan, which reshapes the health care system in China; therefore, in the next three years, the market will have grown due to government support to change the health care in China.
As we do our market analysis, east china takes 25.5% of the hospitals in China where china economic development is very high, Central china takes 18.2% of the hospital and where we will expand our plant in Beijing in North china takes 17.27% of the hospital. Since our potential customers re this targeted hospital, the market segment we project would have grown due to increased capacity in these hospitals in the next three years. The aging population of china currently is 241 million aged 60 and 65, which is 10% of the china population since our product in the net three the aging population will increase; therefore, segmentation our product will ensure it serves the targeted end-users.
As China, national medical products administration (NMPA) will have a significant impact on our MediCorp company in China. Some of the legal laws that will have an impact our company in China include that the MDR requires the med-tech companies to conduct clinical studies in China. And to submit a clinical evaluation report which describes correspondence to prior approved products of the same type to show safety and effectiveness. These will create substantial challenges for the time market. The drafted regulation on ease control over the distribution of class II devices will limit our production and distribution of our product in the market. FDA China released a document that removes clinical trial of foreign devices if they had already done in abroad this would benefit our company since reducing the process of registration and application in China.