Core Viewpoint - The article discusses the implications of the EU's recent ban on Chinese medical device participation in its procurement processes, highlighting the rapid growth of China's medical device industry and the potential for retaliatory measures from China [3][4]. Summary by Sections EU-China Medical Trade Dynamics - In 2024, the trade scale of medical devices between China and the EU is projected to be $37.04 billion, with China importing $28.04 billion (a 6.09% decrease year-on-year) and exporting $9 billion (a 12% increase) [5]. Product Composition and Market Trends - China's exports of high-end medical equipment to the EU have seen significant growth, with endoscopes increasing by 294% over four years. Advanced models like 7.0T MRI and 640-slice CT are gaining market share in Germany and France due to competitive pricing [6]. - Despite the EU being China's largest source of medical device imports, the market share of foreign brands is declining as domestic brands gain traction [6]. Rise of Domestic Brands - The domestic market for MRI machines has reached a localization rate of 35.1% in 2024, with CT machines seeing significant increases in installation rates in tertiary hospitals. Domestic brands have reduced PET-CT examination costs by approximately 25% [8]. - By early 2025, about 70% of medical linear accelerators approved by the National Medical Products Administration are domestically produced, showcasing the rapid advancement of local manufacturing capabilities [8]. Factors Supporting Domestic Growth - The rise of domestic brands is attributed to favorable policies like "Made in China 2025," which mandates the application of domestic medical devices in public hospitals. Regulatory support for emerging technologies has also accelerated domestic innovation [11]. - Domestic medical devices are iterating faster than imports, with significant advancements in technology and design tailored to local needs [12]. Innovations and Future Prospects - China is leading in brain-computer interface technology and surgical robotics, with unique innovations such as five-arm robots and non-inflated surgery techniques [13]. - The article emphasizes the potential for Chinese medical devices to become a global benchmark, driven by a large domestic market and rapid technological advancements [14].

Investment Rating - The report indicates a positive investment outlook for the radiation therapy equipment industry, highlighting the potential for growth driven by domestic innovation and supportive policies [4]. Core Insights - The radiation therapy equipment industry is experiencing significant growth due to increasing cancer incidence and an aging population, with domestic manufacturers beginning to break the historical dominance of foreign companies [4][12]. - The market is expected to expand rapidly, supported by favorable policies, technological advancements, and rising healthcare demands [4][38]. Summary by Sections Industry Overview - Radiation therapy is a critical cancer treatment method that utilizes high-energy rays to target and destroy cancer cells, making the precision and safety of the equipment essential [5]. - The industry is characterized by high technological content, rapid product updates, and intense competition, with domestic devices gradually gaining market share [10][12]. Market Demand and Policy Environment - The demand for radiation therapy equipment is increasing due to the rising cancer rates and an aging population, with supportive government policies enhancing market conditions [12][38]. - Policies such as financial subsidies and prioritization of domestic procurement are driving the growth of the industry [35][37]. Competitive Landscape - The market is highly competitive, with both domestic and international companies investing heavily in research and development to capture market share [13][25]. - Historically dominated by foreign giants like Varian and Elekta, the domestic market is witnessing a surge in local manufacturers producing high-end radiation therapy equipment [13][26]. Technological Advancements - The industry is undergoing a transformation towards intelligent and precise treatment technologies, with significant advancements in equipment capabilities [20][21]. - Innovations in radiation therapy equipment, such as the integration of AI and improved imaging systems, are enhancing treatment efficacy and safety [11][20]. Market Size and Growth Projections - The radiation therapy equipment market size is projected to grow from approximately 158.09 billion RMB in 2019 to 230.41 billion RMB by 2024, with a compound annual growth rate (CAGR) of 7.83% [32]. - Future growth is anticipated to continue, with projections indicating the market could exceed 1 trillion RMB as treatment penetration increases [31][32]. Industry Chain Analysis - The industry chain consists of upstream component manufacturing, midstream equipment production, and downstream sales and service, with a focus on enhancing domestic production capabilities [18][19]. - The upstream sector is seeing breakthroughs in core components, while the midstream is characterized by a mix of foreign and domestic brands competing for market share [19][24]. Challenges and Opportunities - Despite the growth potential, the industry faces challenges such as uneven resource distribution and a shortage of skilled professionals, which could hinder service delivery [29][30]. - However, ongoing policy support and the push for improved healthcare infrastructure are expected to create significant opportunities for market expansion [36][38].