GE Healthcare’s Potential China Exit: A Symptom of Broader Strategic Shifts Among Multinational Medtech Firms

HONG KONG – A recent Bloomberg report suggesting that GE Healthcare is exploring strategic options, including a potential sale of its China unit, has sent ripples through the global medical technology industry. While GE Healthcare declined to comment on what it termed “market rumors,” the mere possibility underscores a fundamental recalibration of China’s role in the growth strategies of multinational corporations (MNCs).

For years, China was the undisputed growth engine for companies like GE, Siemens, and Philips (collectively known as “GPS”). However, recent financial disclosures paint a different picture. In the first half of 2025, GE Healthcare’s China revenue declined by 2% year-over-year to $1.16 billion, while Philips saw an 11% drop in the region. For many MNCs, China now contributes less than 15%, and sometimes as little as 10%, to global revenue, a stark contrast to the dominant share held by the stable and growing U.S. market.

This shift is driven by a confluence of persistent headwinds. The widespread implementation of volume-based procurement (VBP) has drastically compressed profit margins across drugs, consumables, IVD, and medical devices. In 2024, revenues for GE Healthcare, Siemens Healthineers, and Olympus in China fell by 17%, 12%, and 21% respectively. The trend has continued into 2025, with Roche Diagnostics reporting a 26% plunge in China sales following a national procurement round for chemical reagents.

“The era of double-digit growth in China is likely over. The market is now transitioning towards moderate, mid-single-digit growth,” an industry insider commented. This perception of China evolving from a “growth engine” to a “stable market” is forcing MNCs to make difficult choices.

The industry is witnessing a divergence in strategy. Some firms are choosing to retreat; since 2024, 161 imported drugs have not been re-registered in China. Others are digging in. In recent national procurement rounds, companies like Cordis and Boston Scientific submitted aggressive, low-ball bids to maintain market share, sacrificing short-term profits for long-term presence. GE Healthcare itself has accelerated its localization strategy, with six manufacturing bases in China producing best-selling products like the  series ultrasound systems.

The potential move by GE Healthcare reflects a global trend of resource reallocation. Driven by factors like tax policies and market returns, multinationals are increasingly shifting investment toward the United States. The key question for any MNC remaining in China is whether it can continue to deliver truly innovative products that meet clinical needs and deeply embed itself into the healthcare system through physician education and academic collaboration. Staying at the table, albeit with a changed role, is seen as the prerequisite for participating in China's future.

——

GE IS200EPSMG2AEC

GE IS200EPSMG2ADC

GE IC693CPU352

————————————————————————————————————————————————————————————————————————

Xingruijia

Original factory direct supply, quality assurance - GE module professional supplier

Consult now to obtain the latest technical information and quotation for GE modules!

·Manager: Jinny                                         ·E-mail: sales1@xrjdcs.com     

·Tel: + 86-15359273791（WhatsApp）   ·Wechat: + 86-15359273791

————————————————————————————————————————————————————————————————————————