Rumors about China

July 02, 2014
by Philip F. Jacobus, CEO
Over the last few weeks, I have spoken to a lot of entrepreneurial/business firms in mainland China. According to what I am being told, there is a growing trend in China to encourage in-house service and/or third party service.

More and more engineers from a broad range of companies are leaving the OEM to start their own firms to provide service there.

It will probably come as no surprise that spare parts represents one of the biggest challenges and a discussion about sourcing spare parts is on everyone's lips.

"Officially," there is a restriction on importing used parts, but there seem to be loopholes that allow for parts to be imported legally.

Unfortunately, when medical equipment in China is replaced, used equipment is sent to scrap. I have to believe there are markets around the world
that would love to get their hands on this equipment but, that is not happening.

Those of us who live in the United States can understand this approach and I suspect in the coming years when Chinese authorities find out how much money can be saved by allowing health care providers and independent service firms freedom to prosper that there will be a change in policy.

Just remember, as Dolly Parton says, "You can't direct the wind but we can adjust the sails."