A U.S.-based radiotherapy leader has achieved remarkable growth in China, driven by the country's reform and opening-up, an increasingly favorable business environment, technological advancements and a robust local supply chain, fostering cooperation and win-win outcomes between foreign companies and China.
Varian Medical Systems, a global pioneer in radiotherapy, radiosurgery and cancer treatment technologies, entered the Chinese market in 1983. In May 2024, the company inaugurated its regional headquarters in Yizhuang in the southeast suburbs of Beijing, underscoring its expanding footprint in China, as both investment and production continue to grow.
Since its entry into China, Varian's production capabilities have scaled significantly.
"We established this factory in 2008. Initially, we could only produce a modulator, a single component that accounted for less than 10 percent of a complete machine, and we were a global supplier of this component. In 2010, we were able to produce one type of linear accelerator here in China and our production capacity has since increased sixfold, enabling us to produce a full range of products for the company," said Zhang Xiao, Senior Vice President of Varian and President of Varian Greater China.
With the rapid development of artificial intelligence (AI) in China, Varian's research and development center and factory in Beijing have deeply integrated AI with medical robotics, fully automating the personalized radiotherapy. Tasks that previously took several hours can now be completed in just 15 minutes. China has also become Varian's sole global base for manufacturing AI-driven adaptive radiotherapy platforms.
The company has also capitalized on China's streamlined customs procedures and vast domestic and international logistics networks to ship its China-made products to 90 countries worldwide.
"Varian is a company engaged in both imports and exports across the supply and production chains, easy and fast customs clearance, therefore, is critical for us. The authorities have sought our input on recent policy changes, which have improved our clearance speed by 30 percent," said Zhang.
In addition, China's comprehensive supply chains have allowed Varian to partner with high-quality local suppliers, helping the company maintain its competitive edge. Currently, 89 percent of the 10,000-plus components needed to manufacture Varian's cutting-edge equipment can be sourced in China.
"I've been working in Beijing for 14 years, and I've seen the business environment becoming increasingly transparent, international and standardized. This has not only helped us expand our operations in China, but also allowed us to introduce new technologies that benefit patients," Zhang added.
Foreign medical company achieves remarkable growth in China
Yamaha, one of the world's largest piano manufacturers, has established a significant presence in Hangzhou City of east China's Zhejiang Province for more than two decades, witnessing remarkable growth of the market in the country while envisioning long-term development on this dynamic land.
The Japanese company's factory in Hangzhou produces approximately one in every five pianos in China. At its peak, nearly 70 percent of Yamaha's pianos and one-third of its woodwind instruments and guitars are manufactured in this facility. The products not only cater to the Chinese market but are also exported worldwide, earning the brand a prestigious reputation.
The friendly relations between Zhejiang and Shizuoka Prefecture, the center of musical instrument production in Japan, began in 1982, fostering deeper exchanges and cooperation. As trade between the two sides flourished, Yamaha Corporation focused its attention on Zhejiang, seeking to capitalize on its potential.
"Yamaha has high expectations for the Chinese market. The increasingly open Chinese market provides our company with stable support from material procurement to product sales,” said Seiichi Suzuki, general manager of Xiaoshan Yamaha Musical Instruments Co., Ltd.
Yamaha established its factory in Hangzhou's Xiaoshan District in 1997. Initially, the factory relied on assistance from its Japanese headquarters for worker training and production equipment. However, over the years, advancements in China's industrial technology have transformed this dependency. Chinese suppliers have now developed the capability to design and manufacture processing equipment for complex piano parts, even exporting some of the equipment to Japan.
The factory has grown from a modest workforce of fewer than 100 to nearly 3,000 employees. Its production processes have evolved from simple assembly to full-fledged instrument manufacturing, with an increasing focus on localizing component production, thereby enhancing the entire supply chain.
"There is a big difference between 2007 and now," said Taku Okamoto, head of the production department.
Okamoto was sent from Yamaha's Japan headquarters in Shizuoka Prefecture to China seven years ago to oversee product quality. He witnessed rapid development of the country, saying that nowadays tasks that might take a long time in Japan can often be completed in about a third of that time in China.
Today, Yamaha, like many foreign-funded enterprises, is capitalizing on the opportunities presented by China's robust growth. Suzuki, as well as many workers like Okamoto, say they believe that building on the foundation of the past two decades, Yamaha can seek an even more robust development in this land for the next 30, 50, or even 100 years.
Yamaha's journey in Hangzhou inspires vision for more robust development in China
