From Catching Up to Leading: Breaking Through in Domestic Substitution of Core Medical Imaging Components — Roundtable Session No.12

Amid profound adjustments in the global trade landscape and the continuous strengthening of national strategies for autonomous and controllable industrial chains, the domestic substitution of core components in medical imaging has entered a critical and challenging phase. Breaking through high-end technological barriers and building an autonomous and controllable supply chain have become central issues concerning industrial security and innovative upgrading.

During this critical window period, the 12th episode of the "China Innovative Medical Assets Living Room" Transaction Roundtable, co-hosted by VCBeat and Weijieyao, focuses on “Technological Breakthroughs Leading the Transformation—The Path to Domestic Substitution of Core Components in Medical Imaging”, bringing together industry practitioners and seasoned investors to engage in in-depth dialogue on technological evolution, ecosystem synergy, and capital empowerment.

The domestic substitution of core components for medical imaging has entered a critical phase, shifting from “filling gaps in the low-to-mid-end segment” to “tackling high-end challenges.” Profound transformations are underway in technological iteration, market demand, and collaboration models, while companies across different niche sectors face differentiated development requirements.

“The tariff war has made us realize that relying on imports is not only costly but also poses supply chain security risks.”Tang Zhihong, Chairman of Chaoqun TestingIt is pointed out. At present,Domestic Substitution No Longer Content with Parameter Benchmarking, but instead directly targets core technological barriers such as X-ray tubes for 128-slice and 256-slice CT scanners, as well as DSA X-ray tubes that have been entirely dependent on imports. The company’s DSA X-ray tube has already obtained FDA certification, with domestic regulatory approval currently in progress. He further emphasized that mass production capability has become the key determinant of successful substitution: “It is not enough to remain at the prototype stage; only by achieving stable and reliable large-scale production can true substitution be accomplished.” Moreover, original equipment manufacturers (OEMs) have shifted their stance from passive procurement to active joint development, marking the transition of Chinese enterprises from “followers” to “innovation partners.”

Zhang Qinghui, Deputy General Manager of NuRay Technology Co., Ltd.This trend is corroborated by the technological innovation roadmap. The cold-cathode distributed X-ray source, a focus of deep corporate R&D, essentially represents a differentiated path to breakthrough success.Technological Drivers Have Shifted from Benchmarking Against Foreign Counterparts to Addressing Genuine Clinical Needs, such as low-dose, rapid intraoral imaging and 3D tomosynthesis, as well as the development of ultra-fast imaging equipment to meet clinical demands for rapid, high-definition imaging of moving organs. This technology-driven shift has elevated collaboration models from mere component supply to deep co-creation. NuRay Technology Co., Ltd. has joined forces with original equipment manufacturers (OEMs) and clinical experts to jointly define new systems, share data and intellectual property, and successfully secure funding from the National Major Scientific Instrument Special Project. This evolution also imposes higher requirements on enterprises: they must not only deepen their professional expertise but also possess interdisciplinary understanding and the strategic patience for long-term collaboration.

Shang Haiming, Founder of Beephotonit adds a key point from the supply chain perspective: “Ultimate cost efficiency, reliable performance, and supply security have become the new thresholds for domestic substitution..” As domestic original equipment manufacturers (OEMs) enter an era of mass production and centralized procurement, upstream suppliers must ensure stable product performance, timely delivery, and supply chain security under extreme cost control. “This requires enterprises to possess refined management capabilities across the entire value chain and agile response capabilities,” he further stated. Market demand has shifted from “whether substitute products exist” to “whether high-cost-performance products with stable supply can be consistently provided.” In terms of cooperation models, mere component supply is no longer sufficient to maintain a foothold. “We need to collaborate with OEMs to build competitive advantages and engage in continuous iteration, developing differentiated products tailored to new scenarios and emerging demands, thereby avoiding homogeneous price wars.”

As a key battleground for hard-tech investment, the capital landscape in the field of core components for medical imaging is simultaneously undergoing a profound “value reassessment.”

You Linlin, Partner at Yueyin Medical FundIt is pointed out that domestic substitution is exhibiting a clear technological evolution: at the technical level, innovation is shifting from imitation to foundational breakthroughs—“companies are no longer satisfied with merely catching up on specifications, but are forging a Chinese path toward high performance and low cost through fundamental innovations in materials and processes.” At the supply chain level, self-reliance and controllability have become an unshakable imperative, with the localization rate of core components generally exceeding 85%, and some achieving complete autonomy.

She further emphasized that commercialization remains a key challenge, with lengthy adoption cycles requiring portfolio companies to build commercial capabilities in advance. However, driven by strategic imperatives, original equipment manufacturers (OEMs) are motivated to support upstream suppliers; once breakthroughs are achieved, this will establish a deep competitive moat. Based on this, she judges that domestic substitution is accelerating from “point-specific breakthroughs” toward “systemic replacement,” with capital increasingly focusing on technological barriers and synergistic value within the industrial chain.

Based on this, in investment practice, capital favors those that combine “Hard Technical Barriers, Strong Team Execution, Early Commercial Layout“characteristic” enterprises, and manages long-term R&D risks through a portfolio that spans multiple domains (such as core components, consumables, and innovative drugs) and development stages (early-stage vs. mid-to-late stage). Meanwhile, it actively facilitates synergies among portfolio companies post-investment and engages leading portfolio companies as advisors, thereby establishing an ecosystem-based risk control framework.

Liu Xiaoying, Senior Investment Manager at Shenzhen Capital GroupStarting from changes in policy and the industrial ecosystem, she analyzed the new focal points of capital allocation. She pointed out that the policy focus has shifted from encouraging procurement to cultivating a domestic production system, using mechanisms such as “open competition for selecting the best candidates” to precisely address weak links in the industrial chain. Meanwhile, volume-based procurement is forcing original equipment manufacturers (OEMs) to deepen collaboration with upstream suppliers, driving the logic of import substitution away from merely asking “whether substitute products exist” toward questioning “whether original technologies are present.” Capital is now focusing on foundational innovations—such as liquid metal bearings, photon-counting CT, and AI integration—that can resolve performance bottlenecks and enhance clinical value.

Facing the critical phase of 2026, Liu Xiaoying stated that evaluations will be further deepened: going beyond technical parameters to thoroughly examine engineering stability, yield rates, cost potential, and the localization level of upstream raw materials, while placing high importance on the alignment between technology and clinical pain points. Shenzhen Capital Group hasAlignment with National Strategy, Technical Barriers, Team Strength, Commercialization ProspectsFour Key Dimensions Transform the “Chokehold List” into an “Investment List”.

She emphasized that the role of capital is evolving from a financial backer to a connector within the industrial ecosystem. By adhering to the principle of “30% investment, 70% service,” Shenzhen Capital Group (SCGC) strives to act as a “matchmaker,” facilitating collaborative R&D among its portfolio companies and linking resources through brand-building activities. It accompanies enterprises that are both integrated into the global innovation network and rooted in China’s system, fostering their joint growth and building an autonomous and controllable industrial ecosystem.

How Can Enterprises Break Through Challenges Such as Difficulties in Achieving High-End Technological Breakthroughs, Balancing Cost and Performance, and Expanding Globally?

Option 1: M&A Integration + Independent Iteration, Bridging the Last Mile of Technology Transfer

Chaoqun Testing rapidly entered the high-end technology ecosystem by acquiring a century-old American X-ray tube manufacturer. Prior to the acquisition, the company already possessed a solid technological foundation and stabilized its overseas core team through a benefit-sharing mechanism. Over three years, it completed a systematic technology transfer and, building on this base, independently developed liquid metal bearing technology, achieving localization of core components. Meanwhile, leveraging the brand and channel advantages of its overseas facilities, the company established a global layout featuring “dual bases in China and the US” and “dual-market circulation,” effectively mitigating trade barriers. Tang Zhihong summarized, “Successful M&A requires a technological foundation, cultural respect, and a win-win mindset. The goal is to become a global player, not to seek short-term arbitrage.”

Option 2: Multi-Scenario Reuse + Deep Process Optimization, Building a Dynamic Balance Between Cost and Performance

Shang Haiming pointed out that the market size for medical imaging components is limited, making it difficult for a single sector to sustain continuous R&D investment. Therefore, Beephoton TECHNOLOGY(Changzhou) Co., Ltd. has extended its CT detector technology to fields such as industrial inspection and security, thereby achieving diversified value conversion of its R&D investments. “The core lies in optimizing the entire chain from design, materials, to processes, while building a stable upstream and downstream ecosystem to ensure autonomous control over key components,” emphasized Shang Haiming. He stressed that the core of long-term competitiveness resides in sustained and differentiated innovation in design, coupled with unique accumulation in materials and processes. “While design is easily imitated, materials and processes are difficult to replicate in the short term. The combination of these three elements builds competitive barriers and is also key to balancing cost and performance.”

Option 3: Differentiated Competition + Global Collaboration, Defining the Future in New Scenarios

NuRay Technology Co., Ltd. has avoided the fierce competition in the traditional medical imaging market by focusing on emerging applications such as mobile healthcare and 3D dental imaging, fully leveraging the unique advantages of cold cathode technology in “lightweight design, low power consumption, and rapid imaging.” By following the path of “technological innovation – local industrialization – global expansion,” the company has achieved a leap from an innovator to a leader in mass production. Zhang Qinghui emphasized, “In the context of global competition, enterprises must not only have the determination to root their innovations in China but also possess the collaborative capability to achieve symbiotic and win-win outcomes with global partners.”

To deepen the advancement of domestic substitution, it is urgent for original equipment manufacturers (OEMs) and core component enterprises to establish new collaborative relationships. Focusing on three major pain points—business logic, product paradigms, and R&D pacing—entrepreneurs shared their strategies for overcoming these challenges.

In collaborations with international and domestic OEMs, Tang Zhihong pointed out that the current obstacles are no longer related to technology or production capacity.“Two major bottlenecks stand out at the commercial level: first, price expectations have been suppressed to parity with original manufacturer products, failing to reflect the cost advantages of domestic production; second, OEMs often demand exclusive supply.” He argued that this not only undermines the economic value of domestic substitution but also contradicts the original intent of reducing healthcare costs through market competition, calling for the establishment of a healthy ecosystem characterized by “technological equivalence, reasonable pricing, and an open market.”

Addressing the contradiction between customization and standardization, Shang Haiming believes that the core lies in building “flexible intelligent manufacturing capabilities.”In the early stages, the industry tended toward deep customization. However, as competition intensified and cost pressures mounted, standardized products have become a key option. He believes that these two approaches are not mutually exclusive; the critical factor is for enterprises to possess mature experience and accumulated knowledge, along with foundational capabilities in agile development, rapid production changeover, and quick scale-up. “Provide tailored solutions based on customer size: recommend standard products for smaller clients and offer moderate customization for larger ones, thereby ensuring efficiency while meeting personalized needs.”

To cope with the rapid iteration of complete machine manufacturers, NuRay Technology Co., Ltd. has established a systematic response mechanism.: First, align on the technical roadmap with OEMs in advance and participate in the early definition of new systems; second, focus on niche, underserved market segments to co-develop next-generation products and reduce homogeneous competition; finally, evolve from a component supplier into a risk-sharing partner, jointly conducting clinical validation and market promotion to shorten the technology translation cycle.

Looking ahead to the next 1–3 years, panelists unanimously agreed that the domestic substitution of core components for medical imaging will enter a critical period characterized by accelerated differentiation and value restructuring, with technology, capital, collaboration, and innovation serving as the key variables reshaping the industry landscape.

You Linlin Forecasts Three Major Trends from an Investment Perspective: First, technological breakthroughs are concentrating on core areas, with advancements in “heart components” such as CT X-ray tubes and detectors becoming key markers of domestic substitution. Second, the competitive logic is shifting from “price wars” to “product portfolios + integrated solutions,” intensifying consolidation and M&A activities among leading enterprises. Third, global capabilities have become a core corporate competency. Capital will focus on companies that combine clinical value, robust technical barriers, and potential for global expansion.

Shang Haiming emphasized that the industry must adhere to long-termism.“Pressure from short-term medical insurance cost containment and centralized procurement will persist, making industry consolidation inevitable. However, there remains room for growth in the global installed base of CT scanners. The key lies in balancing input and output, leveraging technological expansion and multi-sector deployment to withstand short-term fluctuations.” He believes that the companies destined to survive will be those that “dare to compete without becoming entrenched in price wars, achieving differentiated profitability through innovation.”

Zhang Qinghui Predicts Market Will Exhibit PolarizationIn the realm of mature, low-to-mid-end components, the localization rate continues to rise, with competition focusing on cost, reliability, and service. The high-end innovative component sector is entering a stage of global confrontation, where “whoever achieves technological breakthroughs, large-scale commercialization, and clinical validation first will define the industry’s value standards.” He suggests that companies should strive for excellence in niche segments and forge deep ties with supply chain partners, as “the core objective is to jointly build China’s technological system for high-end medical equipment and enhance its global influence.”

Tang Zhihong emphasized from an ecological perspective that technology, capital, collaboration, and creativity are the four key factors determining the landscape.Core components belong to a technology-intensive industry that requires sustained capital investment and breakthroughs in R&D. Meanwhile, supply chain collaboration is a systematic engineering endeavor necessitating concerted efforts across multiple fields, including sensors, X-ray sources, and system integration. Ultimately, the core determinant of corporate competitiveness is genuine creativity, rather than plagiarism or imitation. He called on the industry to abandon low-level involution, reinvest profits into R&D, and cultivate a healthy industrial ecosystem.

The roundtable discussion concluded with a consensus: the path toward self-reliance and controllability in core components of medical imaging has shifted from a narrative of “substitution” to a new chapter of “innovation” and “leadership.” Along this journey, there is not only the determination to overcome critical technological bottlenecks, but also the exploration of building a new industrial ecosystem. Moreover, a cohort of Chinese enterprises and investors are redefining the future of high-end manufacturing with a global perspective.