Cochlear Ltd's strength in the Chinese market is under threat as Chinese bionic ear maker Nurotron Biotechnology has received approval allowing it to compete with Cochlear for lucrative Chinese government contracts, according to The Australian Financial Review.
Nurotron has been granted approval to provide implants to children, allowing it to participate in the Chinese government's five-year program, which launched last year, to provide underprivileged children with hearing implants.
Nurotron also said it plans over the next four years to build a new factory that will be 10 times the size of its existing facility.
The first test for both firms will come via a key government tender in August.
“We think we have a good chance of winning because the government likes to support Chinese technology and Chinese companies,” Nurotron chairman Li Fangping told the AFR.
“This is good news for poor families across China because we can offer good quality products at competitive prices.”