Sensor and diagnostic technology development in China is relatively immature, with the current market structure dominated by western companies and multinationals. However, given the tie in to stated goals in the 12<sup>th</sup> Five Year Plan of improving overall healthcare,especially in rural areas, we observe increasing funding in a number of key sensing and diagnostic research areas. A view of the commercial landscape shows that physical diagnostics leads the way, with some local companies in position to challenge much larger western rivals. We see a wide variety of innovative technologies being developed at the university and research institute levels that at the subject matter level are on par with research being conducted in more developed nations. We predict that in the next 3-5 years biologics-based diagnostics will catch up and offer strong domestic options to today’s imported western technology.