Chinese made middle-sized medical equipments are sold at extremely low price. Let's see 2 examples:
1 Mammo x-ray machine
Selling in selling out volume
For international brands: 60-70K euro 100-140k 150-200/year, sum of all vendors
For local brands: 11-13k euro 30-40k 100-150/year, sum of all vendors
2 Single syringe high pressure injector for contrast agents
Selling in selling out volume
For international brands: 7K euro 10k 300/year, sum of all vendors
For local brands: 1.5-2k euro 2-3k 100/year, sum of all vendors
Let me explain the reason for this.
For big hospitals in China, they are very very rich ,they only think about quality but not price, so they always buy international brands.
For small hospitals in China , middle-sized equipment for them is big equipment. They want to have "good face", so they will buy a international brand product.
Only for very small portion of the small hospitals who are really poor, they have to care about price, so they will buy a local brand product. So,this is the only the target market of local manufacturers.
Because the target market is small , so the local manufactures don't have budget to do branding or marketing, and because the value of middle-sized medical equipment is not high enough to support direct sales, the suppliers have to give all the channel margin to dealers.
In this way, the dealers holds all the bargaining power, the local venders for middle-sized medical equipments are exploited. And this is a vicious circle, the less they get , the more they rely on price war.Then we see the price listed above.
This gives the international companies a very good opportunity to make easy money: acquire a local manufacture, stick a foreign brand to it, sell at double price, and count profit.
If you don't beleive this, you can try once instead of debating, you only need to pay a couple of foreign workers annual salary to acquire a Chinese company, and see what happens.