3.1.4 Acceleration of Localization for Foreign Companies

Under the current new situation, the localization is to encourage manufacturers of various brands to carry out manufacturing and promote the effective circulation of production factors within the territory of China rather than "protect the local brand products and expel the international brand products." 

With the improvement of Chinese manufacturing industry's contribution to the global economy in recent years, more and more international brands, such as Roche, Abbott, Siemens, Beckman, tend to establish the production bases and carry out production in China, to achieve the localization of imported brands. The four giants "Roche, Abbott, Siemens, Beckman" started the localization layout as early as 1985 in China.

1. Beckman Coulter

In 1997, Beckman Coulter established a reagent factory in Suzhou, Jiangsu Province, which was the first foreign IVD Company in China. Presently, it has carried out in-depth strategic cooperation with BSBE in the biochemical industry. As required by Beckman Coulter, BSBE will supply reagents suitable for the sales of Beckman Coulter biochemical equipment in China, to improve the biochemical reagent product line of Beckman Coulter in China.

2. Roche

In 2000, Roche Diagnostics officially entered China and established a production base in Suzhou. With the establishment of Roche Diagnostics (Suzhou) Co, Ltd., Roche Diagnostics has realized its localization layout. This is the first production base and R&D center established by Roche Diagnostics in the Asia-Pacific region as part of its global operation network, and presently China has become the second largest market of Roche Diagnostics in the world. In 2016, Roche Diagnostics China and BSBE held a contract signing ceremony for biochemical reagent cooperation in Shanghai, which officially opened a new chapter to work together in the Chinese market for new achievements between two sides. According to the requirements of Roche Diagnostics, BSBE would supply the biochemical reagents suitable for the instruments such as cobas 701/702, cobasc 501/502, cobasc 311, and Modular P for sales in China. Roche Diagnostics is committed to offering overall solutions for Chinese laboratory customers, including high-efficiency instrument testing platforms, comprehensive reagent testing menus, accurate and credible testing results, and professional full-process technical support services. In addition, Roche Diagnostics is actively seeking reliable partners to continuously improve the testing system and provide better services for customers. Through this cooperation, the two sides can further expand their market shares in the field of biochemical diagnosis, which is of positive and great significance to the enterprise development.

3. Abbott

Abbott, as a global diversified healthcare services company, has not yet established production base in China, but it actively acquired the domestic companies as its headquarters in China to provide various point-of-care testing (POCT) products and platforms in China. Its business services cover the diagnosis of cardiovascular diseases, diabetes and other chronic diseases and infectious diseases, toxicology diagnosis, women's health detection and tumor detection, etc., with a very complete localization layout. 

In 2016, Abbott and BSBE signed a strategic Technology Licensing and Transfer Cooperation Agreement on the biochemical diagnostic reagents. In accordance with the agreement, BSBE would provide Abbott with the production formula and process control flow of biochemical diagnostic reagents in the form of technology (including patent) licensing, and as consideration, Abbott would provide technology transfer fee and milestone payment in a lump sum, and the sales commissions of the transferred products in a certain period in the future. 

This cooperation has created a precedent for the technological output of Chinese IVD enterprises, and is of pioneering historical significance; in addition, it accords with Abbott's strategic plan as a global leader in biochemical diagnostics, strengthening Abbott's competitive advantage in the industry of biochemical reagents.

4. Siemens

Siemens started its layout in China as early as 1985. In this year, Siemens and the Chinese government signed a memorandum of cooperation and became the first foreign company to have in-depth cooperation with China. Siemens Healthineers has the ability to produce IVD reagents in China. The Shanghai Base, as the sole innovative base in the world for the integrated production of in vitro diagnostics and medical imaging, further assists Siemens Healthineers in promoting precision medicine and transforming the diagnosis and treatment model, and fully supporting the implementation of "Healthy China 2030" plan.

According to the layout and localization in China, the four giants have established offices, factories, and R&D centers in China and gradually expanded their scales, which are attributed to the comprehensive opening up of national policies and emphasis on innovation. Among them, Beckman Coulter (Suzhou) Co., Ltd. ranks the first in the number and types of approved IVD products, with 65 products registered for marketing, including the biochemistry analyzers, biochemical reagents, immunoassay reagents, flow cytometers, etc. 

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