GE HealthCare reportedly considers sale of China unit

Bloomberg reports that GE HealthCare

(Nasdaq: GEHC)
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has begun exploring options for its business in China, including evaluating a potential sale.

Reuters also reported today that a person familiar with the situation said the company is working with advisors to explore those options. That may include an outright sale of the unit, the report said.

According to the report, GE HealthCare could also seek to find a partner in China or sell a stake in the business. Reuters expects a value for the unit in the billions of dollars, although discussions remain at an early stage.

GE HealthCare — one of the largest medtech companies in the world — has faced repeated headwinds in China, with multiple quarterly earnings reports citing softness in the region as a reason for slowdowns in sales in recent years. Earlier this year, the company faced another potential headwind related to a Chinese government probe into whether lower-priced medical CT tubes from the U.S. and India are entering its market.

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Amid all this, the company transitioned its leadership in China as well within the last year. Yihao Zhang, GE HealthCare’s president and CEO for China, retired in July. The company tapped Will Song, a veteran of more than 20 years at Johnson & Johnson, to become the new president and CEO for China.

When announcing Song’s appointment, GE HealthCare CEO Peter Arduini noted Song’s “stellar reputation and in-depth knowledge of the China market, along with his robust relationships with key stakeholders and deep understanding of our customer base.” Arduini said Song would “help enhance our position in China and move the region forward to effectively deliver on the future of healthcare.”

According to Reuters, GE HealthCare’s China business includes its CT and MRI imaging systems, with six manufacturing sites in the country. However, the impact of recent tariffs further hampered the business, with Reuters saying revenues in the region declined by about 15% in 2024.

Of the $19.67 billion in revenue that GE HealthCare saw in 2024, China made up $2.36 billion, or roughly 12%, according to the company’s most recent annual report. Among GE Healthcare’s 53,000 employees, 17,000 were in the U.S. and 7,000 were in China. (See how GE HealthCare ranked in our newest Medtech Big 100 report. Go here for a free download.)

In the company’s July second-quarter earnings report, GE HealthCare cited progress in its tariff mitigation efforts. On that quarterly earnings call, CFO James Saccaro said: “As we gain clarity on how the final tariff deals look, we’re starting to invest in some more substantive changes. For example, shifting manufacturing to more local for local or working with our supply base to move capacity within their network to more tariff-friendly geographies.”

Arduini also noted the current state of affairs in China on that call.

“In China, I’d say we’re seeing activity pick up,” he said. “That being said, the velocity, obviously, the activity is picking up. But the pace of the recovery itself, meaning actual POs and people buying, is taking a little bit longer. So [we’re] seeing some uptick in activity, but things are taking a little longer.”