The Chinese market for analysis equipment and laboratory technology is growing at a remarkable pace. What better opportunity to establish business ties at AnalyticaChina, which is being held in Shanghai from September 23 – 25, 2008. Some 250 exhibitors from around the world are expected to participate in the fair and present the latest equipment and solutions to an audience of Chinese professionals. More about the market situation…

Rapid growth in the Chinese pharmaceuticals and chemicals industry also means that the analysis market is increasing in importance. This market has grown considerably during the last few years, and exports account for two thirds of market volume. This sector is also growing at a rate of some 10%. Growth in the medical and pharmaceutical sectors, the introduction of GMP conditions, and the growing significance of environmental-protection issues have increased demand for suitable laboratory-technology solutions.

Even though China has several of its own manufacturers of analysis equipment, there are still considerable differences compared to western products. China needs a number of analysis devices that the Chinese industry cannot provide. According to Spectaris, the market is polarized between high-end and low-end products, and hardly any products are available between these two extremes. China relies heavily on imports, particularly with regard to high-tech products. According to some estimates, imports will account for 70% of China's investments in laboratory equipment in the future, as well.

That is why China joining the World Trade Organization (WTO) in 2001 was seen as a very positive development for foreign manufacturers because it meant massive reductions in customs fees. Customs fees on medical equipment, which includes reagents and laboratory analysis equipment, dropped to 3.9% in 2005. That same year, Germany exported 267.4 million euros worth of analysis and laboratory equipment to China, which according to Spectaris was an increase of 10.3%. That gives Germany a 12% market share, making it China's third-largest importer after Japan (24%) and the US (33%). By comparison, China imports just 57.5 million euros worth of goods to Germany.

At the beginning of this year, Bruker Optics profited from efforts on the part of the State Food and Drug Administration (SFDA) to stop the problem of counterfeit medications in China. The company received an order for 300 FT NIR spectrometers that will be installed in laboratory vehicles and used throughout China.

Most Chinese manufacturers of analysis and laboratory equipment are located on the east coast in the provinces of Guangzhou, Fujian, Zhejiang, Shanghai and Shandong. During the past few years, a growing number of foreign manufacturers have also established themselves in Shanghai, which is where this year's AnalyticaChina is being held. For example, Hamilton just opened a Customer Care Center in Shanghai in July. And in February, PerkinElmer announced the opening of a new technology center at the Zhangjiang Bio-Pharma Park in Pudong New Territory.

While many of these subsidiaries still primarily focus on sales and support, in June Analytik Jena started production of its first large-scale systems to be manufactured entirely in China. Analytik Jena is manufacturing a TOC analysis system for analyzing water quality in the pharmaceutical, environmental-protection and semiconductor industries. The company's goal is to sell twenty of these systems on the local market by the end of this year. In the future, the plant in China will be used to supply the entire Asian market.