Medtronic Executive Alex Gu: China Emerging as a Global Hub for Medical Innovation

Source: Xinhua News Agency

Xinhua News Agency, Beijing, June 25 (Reporter)Title: Medtronic Executive Gu Yushao: China Is Becoming an Important Source of Medical Innovation

By Xinhua News Agency reporters Dai Jinrong and Zou Duowei

Weighing only a few dozen grams, with a compact appearance and a smooth surface... At the 4th China International Supply Chain Promotion Expo, the rechargeable, sensor-enabled closed-loop brain pacemaker brought by medical technology company Medtronic attracted considerable attention.

“Rooted in China for 37 years, we have always regarded innovation as our engine, transitioning from an ‘importer of innovative technologies’ to a ‘co-builder of the local ecosystem.’ The Supply Chain Expo has provided a significant opportunity for this transformation,” said Gu Yushao, Global Senior Vice President and President of Greater China at Medtronic, in a recent exclusive interview with a Xinhua News Agency reporter.

Founded in the United States in 1949, this company is now deeply integrated into China’s industrial and innovation chains. The electric endoscopic surgical staplers developed, designed, and manufactured at Medtronic’s integrated surgical solutions base in Changzhou, Jiangsu Province, are not only serving the Chinese market but have also been exported to multiple overseas markets, including France, Austria, and Spain. “We hope that more innovative therapies originating from China will benefit patients worldwide,” said Gu Yushao.

“We believe that China is becoming a major source of global medical innovation. In the near future, China will become the largest medical device market in the world by volume,” said Gu Yushao.

Looking back on its journey, Medtronic has continuously strengthened its localization strategy in China, evolving from the 1.0 stage, which focused on market promotion and the rapid introduction of advanced global therapies, to the 2.0 stage around 2010, characterized by the establishment of local manufacturing facilities, acquisition of domestic enterprises, and advancement of local production, and further to the 3.0 stage, marked by active participation in building China’s healthcare innovation ecosystem.

To date, Medtronic has introduced more than 700 therapies to China, with the pace of introduction continuing to accelerate. “This is attributable to the company’s comprehensive innovation ecosystem and full value chain presence in China, spanning R&D, manufacturing, clinical training, commercial operations, and investment,” said Gu Yushao. Medtronic has established an R&D center in Shanghai and built two world-class innovation centers in Shanghai and Chengdu to support clinical training. Its four major production bases are located in Shanghai and Changzhou. Local collaborations have facilitated the development of an AI assistant for transcatheter heart valve replacement procedures. Its two-phase venture capital fund has cumulatively invested in 15 Chinese innovative enterprises, many of which possess original technologies that fill gaps in the global market.

The unique advantages of China’s supply chain constitute another key consideration for Medtronic’s deep commitment to the Chinese market. Gu Yushao stated, “The production cost of products made in China is approximately half that of global peers, while quality continues to improve.” Medtronic’s annual procurement volume in China amounts to around RMB 6 billion, with 90% sourced directly to serve its global supply chain. He expects this proportion to increase further.

This kind ofDriving ForceA Definitive Assessment of China’s Market Prospects—From the perspectives of surgical volume and healthcare demand, China benefits from its demographic scale advantage and faces real-world demands driven by an aging population. Coupled with growing public health awareness, a vast market characterized by inelastic demand is taking shape.

At this year’s CIIE, Medtronic’s “crossover” appearance in the AI zone, shifting from last year’s Healthy Living Chain exhibit, is a microcosm of its accelerating localization strategy.

“Innovation in medical devices requires AI empowerment, extensively serving brain-computer interfaces,”Robot...image recognition, and other fields; therefore, we are actively collaborating with local AI companies in China.” Gu Yushao stated candidly that over the past decade, China’s medical device industry has rapidly evolved from early-stage follow-on innovation to incremental innovation, and even to the development of globally first-of-their-kind technologies, accelerating the maturation of its innovation ecosystem. By the end of 2025, Medtronic will operate its first digital healthcare innovation hub in Beijing, aiming to connect supply chain partners, research institutions, and clinical practice to explore new models of digital and intelligent healthcare innovation.

Now, Medtronic is also attempting to build a “bridge overseas” to help Chinese innovative enterprises go global. “We adhere to the philosophy of ‘being rooted in China, serving China, and looking globally.’ We hope that in this process, we can not only promote the growth of local Chinese innovative enterprises but also assist outstanding companies in entering the international market and achieving global development,” said Gu Yushao.