“When I flew to Chengdu, I drove for three hours to a clinic in a rural mountain area and found that they needed a simple portable ultrasound instrument.†John Dineen, President and CEO of GE Healthcare I still remember my experience in rural China. This made him know that clinics in rural China have completely different needs from the high-end market. They do not need the most advanced instruments, only the most suitable instruments. After serving China's high-end medical market for many years, GE Healthcare has set its sights on China's second- and third-tier cities and rural areas. The goal of John Dinning is to cover all the needs of the entire healthcare system. John Dinning was interviewed by reporters during this year's Davos Forum. He is very excited to point out that there will be huge breakthroughs in the medical field in the next five years, and China is undergoing a major transformation in terms of medical quality, availability and medical costs. No need for the most advanced, only the most right Reporter: China, with its large population, has always been regarded as a market with great potential. For GE Healthcare, what do you think about the future of China's healthcare market? John Dinning: I think that if we continue to develop technologies that meet the needs of the Chinese market, then our growth rate in China will be very strong. For a long time, we have served some of the higher end hospitals in Beijing and Shanghai, some of which are among the best in the world. But we are now entering second-tier cities, which are also large, and then have to enter smaller cities and more rural areas. We have to develop some new technologies for those hospitals, which is what we are doing now – not only for the high-end market, but also for all the needs of the entire healthcare system. The Chinese government is working hard to make the medical system cover rural areas, and we are working hard. Reporter: What specific strategies do you have for the two- and third-tier cities and rural areas that are striving to enter China? John Dinning: Develop product technology based on local conditions. We have large and most developed technologies in many military hospitals and hospitals in Beijing. But when you go to a smaller hospital, they need a more cost-effective, smaller, and simpler technology to provide a diagnosis. When I flew to Chengdu, I drove for three hours to a clinic in a rural mountain area and found that they needed a simple portable ultrasound instrument. On the one hand, China has the most advanced military hospitals in the world. On the other hand, rural clinics have completely different needs. They don't need the most advanced instruments. So we started to develop a product portfolio to produce the right instruments for different types of clinics. Reporter: But in the low-end market, how do you compete with domestic equipment? After all, their prices are much lower. John Dinning: Yes, their cost is low, we can have a low-cost structure, and we have very good software capabilities. We are fully capable of developing products of the same cost structure and can use software to create more features. Reporter: China is undergoing medical system reform. How will you take advantage of this opportunity? John Dinning: China's health care reform is mainly around second- and third-tier cities and rural areas, so our strategy is completely consistent with the government's goals. I have a lot of discussions and cooperation with the Chinese Ministry of Health and the National Development and Reform Commission to ensure that we understand the government's policy objectives and develop relevant technologies to help the government achieve this goal. Reporter: From the perspective of supervision and market barriers, is it more difficult for China's medical market to enter and start business? John Dinning: No, China has an advanced regulatory system, the Food and Drug Administration (SFDA), which is very similar to the US and European regulatory systems. As a medical company, we have extensive experience working with regulatory agencies, and our experience with SFDA is very similar to our US Food and Drug Administration (FDA). Major transformation of the medical system Reporter: The theme of this year's Davos Forum is "Great Transformation: Creating a New Model." From the perspective of the medical industry , what do you think of this transformation? John Dinning: The transformation of the health care system revolves around several aspects. The first is quality, using technology to provide people with higher quality, better results in medical services. Secondly, in terms of medical accessibility, providing more medical care to more people is a major problem for China, and China is currently working hard. Finally, the cost is trying to achieve these transformations within the cost that the government can afford. I think global healthcare is undergoing a series of transformations, and China is clearly no exception. We are seeing a major transformation in China in terms of quality of care, availability and medical costs.
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