China's accelerated transition toward innovation-driven growth and a stronger focus on chronic disease management is opening up new opportunities for global med-tech companies, Siemens Healthineers CEO Bernd Montag said, as the company deepens investment in this key market.

In an exclusive interview with China Daily on the sidelines of the recent China Development Forum 2026, Montag said China is moving beyond a catch-up phase to become a driver of global healthcare innovation.

"China's innovation system is now fully up to date with the global frontier, and in some areas it is setting the pace," he said.

Montag identified artificial intelligence in healthcare, medical robotics and brain-computer interfaces as areas where China is emerging as a global forerunner.

Still, he said the next phase will depend on whether technological breakthroughs can be translated into globally competitive, scalable businesses.

"There is a difference between innovation and building companies that can scale and finance their own growth," he said, noting many startups still face challenges in commercialization and integration.

He added that the long-term value of AI in healthcare will depend on deep integration into clinical workflows, rather than fragmented stand-alone applications.

China's healthcare transformation is being shaped by long-term policy priorities. The outline of the 15th Five-Year Plan (2026-30) targets raising average life expectancy to 80 years, building on current levels of about 79.25 years.

That direction aligns with the Healthy China 2030 initiative, which emphasizes disease prevention, full-cycle health services and stronger primary care.

Montag said this marks a structural transition from acute, hospital-centered treatment toward the continuous management of chronic and age-related diseases, including cardiovascular conditions, cancer and neurodegenerative disorders.

"Better healthcare is not only about affordable products, but about changing how patient care is delivered," he said, pointing to earlier diagnosis, coordinated treatment pathways and long-term patient monitoring.

China's tiered hospital system and policy coordination could enable large-scale deployment of screening and chronic disease management programs efficiently, he added.

For Siemens Healthineers, the shift toward chronic disease management aligns directly with its portfolio, Montag said.

The company is focusing on expanding early detection, advancing precision treatment and using AI to scale healthcare delivery.

Applications such as faster imaging, minimally invasive interventions and AI-assisted diagnostics could improve outcomes while addressing workforce constraints, particularly as demand rises with an aging population.

"We need to use AI and digitalization in order to scale the delivery of healthcare," he said.

At the same time, the company has expanded its local footprint in China as part of a dual strategy of supply chain resilience and market proximity.

It employs about 8,000 people in China and is investing 1 billion yuan ($139 million) in a new research and manufacturing facility in Shenzhen, South China's Guangdong province, which is expected to be operational by the end of 2027.

The facility will focus on the research and production of angiography equipment and core components for magnetic resonance imaging (MRI) systems, serving both domestic and overseas markets.

Montag said China plays a dual role as both a major market and an increasingly important innovation and manufacturing hub within the company's global network.

Chinese companies have made rapid progress, particularly in imaging and AI-enabled diagnostics, intensifying competition in the domestic market, he said.

He described the sector as entering a phase of "innovation on a level playing field", reflecting the maturity of China's industrial and research ecosystem.

He also noted that the regulatory process has become more transparent and predictable, showing improved communication with authorities, though further efficiency could still be gained in approval timelines.

Montag said China's healthcare transition could have implications beyond its borders, particularly as countries grapple with aging populations and rising chronic disease burdens.

He described China as a potential test case for large-scale healthcare system reform, combining policy coordination, technological adoption and system-wide implementation.

For multinational companies, he said, the shift requires a reassessment of China's role.

"China is not just a market," Montag said. "It is a source of collaboration and inspiration."

By Li Jing and Liu Zhihua