Looking to tap into the growing demand for preventative medical technology, China's Ningbo Jansen NMR Technology Co. Ltd. and Japan's Hitachi Ltd. have inked an agreement to jointly develop a high-performance MRI magnet and sub-system.

Jansen and Hitachi will combine their expertise in MRI magnet and system development to co-develop an optimum control sub-system of superconducting MRI magnets, high radiofrequency circuits and gradient coils for a high reliability MRI system with superior image quality.

The co-developed MRI system will be marketed both in China and worldwide. The companies are hoping that the partnership will help them expand their imaging business.

"With the rising incidence of cancer and other diseases caused by serious environmental pollution, there has emerged a growing demand for medical diagnostic services in China, including magnetic resonance imaging," said Jiang Wen, a spokesman at Jansen. "In terms of policies, the Chinese government has continuously issued supporting policies for the medical equipment industry with increasingly serious industry regulation."

"Chinese people's ability to pay for medical services also keeps growing with the development of the economy," he added.

The ageing society and the economic development are both contributing to the growth of the health care market in China, which has a compound annual growth rate (CAGR) of 8 percent and will have an expected market size of $450 billion by 2018, according to analysts.

In 2015, the population aged 65 and above accounted for 10.5 percent of China's total population, compared to 7.7 percent in 2005.

China is the largest MRI systems market in the world with approximately 1,500 MRI systems installed by 2015. Unlike X-ray imaging or radiation imaging, MRIs exert no radiation but are also clearer compared to ultrasonic detecting technology.

"There is a high need for diagnostic technologies and services in China as the population continues to grow older. More and more people in China are also able to afford these services," said Sigal Atzmon, CEO of Medix Group, a medical consultancy.

Both China and Japan use MRI and other medical technologies for preventive medical care. The use of these devices has improved the medical infrastructure and contributed to the creation of a stable market for medical imaging systems.

For Hitachi, the health care business is one of the four main areas of focus in a push to develop socially innovative businesses. This health care business ranges from diagnostic and clinical areas, such as ultrasound, MRI systems and particle beam oncology treatment systems, to informatics including IT services and community care systems. Hitachi's lineup of MRI systems range from open MRI systems to 3T superconducting MRI systems. The company has also worked to develop a less claustrophobic examining space as part of its "Patient Friendly Hitachi" concept.

Headquartered in Cixi City, Zhejiang Province, China, Jansen manufactures permanent and superconducting MRI magnets in China. The company has been providing permanent MRI magnets to Hitachi since 2003.

Analysts see Jansen's move as only the beginning of a wave of med-tech innovations in China.

"With the Chinese medical system reform deepening and the updating and replacement of the original imported MRI equipment approaching, MRI manufacturing enterprises will usher in new opportunities," noted a recent report by Research and Markets.

The report estimated that foreign-funded enterprises account for 80 percent of China's MRI market share. Enterprises engaging in MRI manufacturing in the Chinese market include SSMR, Hangwei GE Medical Systems, China Resources Wandong Medical Equipment, Basda Medical Equipment, Ningbo Xingaoyi Magnets and Shenyang Neusoft Medical Systems.

Over the last two years, the China Food and Drug Administration (CFDA) has issued more than 20 guidance documents on medical device regulation, urging the industry to upgrade device safety and effectiveness.

A 2016 survey of med-tech chief executive officers in China, conducted by consultancy McKinsey & Company, showed that regulation ranked highest in the list of critical issues med-tech leaders face.

Except the simplest Class I devices, all new devices must prove to the CFDA that there is a predicate device on the market or they need to undergo a clinical trial in the country to obtain approval.

The CFDA has also implemented a number of measures to accelerate product approval and encourage innovation. Recently, the CFDA issued the Good Clinical Practice for Medical Devices, a new revision imposing higher compliance standards on the conduct of clinical trials by medical device companies.