The medical device industry constitutes a major part of China’s strategic growth industries. China currently has 14,000 medical device manufacturers and more than 40,000 medical device distributors. From January to May, medical device production reached RMB 55.69 billion, a year-on-year increase of 20.6 percent. However, China sales of medical devices account for less than 3 percent of the total global medical device market. In order to further accelerate developments of China’s medical device industry, the Ministry of Industry and Information Technology, the National Development and Reform r e e d s m i t h . c o m Client Alert 12-188 August 2012 Commission and the Ministry of Science and Technology are working on new supportive policies and measures, which are expected to be issued later this year. Additionally, the Ministry of Health and other government agencies (NCRC, MIIT, MOF) announced a specialized fund of RMB 1.5 billion, which will be used to support the development of key medical device technologies. This fund was expected to launch in July, but has not yet become operational.