Chinese Dental Labs in the Midst of the U.S.-China Tariff War

In a globalized world, China has become known as the “world’s factory,” and the dental industry is no exception. Chinese labs handle about 30% of the U.S. market for dental prosthetics. Many dental clinics and labs in the United States outsource the production of crowns, bridges, removable dentures, and orthodontic models to China. However, since the tariff war began, these dental products have been added to the list of taxed items. So, what does this mean for dental labs in China?

1. The State of Chinese Dental Labs Before the Tariffs

Compared to the U.S., China has lower labor costs and cheaper rent. This has allowed Chinese labs to control their operational costs effectively and offer lower overall prices for dental prosthetics. As a result, countless U.S. clinics and dental labs of all sizes sent their cases to China.

Our workflow involved receiving digital STL files, using CAD/CAM software for design, and milling materials with imported machines. We even hired foreign experts to train our local technicians. Our own skilled technicians would then handle the detailed work of designing, shaping metal or porcelain, and glazing, right up to the final export-ready product. 

Furthermore, many dental labs in China have departments that operate 24/7. This means most standard products, like PFM (Porcelain-Fused-to-Metal) crowns and zirconia restorations, can be completed in just three days—a level of efficiency that most small, local U.S. labs can’t match. Our ability to consistently deliver high-quality work efficiently earned us the trust of clinics and labs across Europe and the Americas. (I will include screenshots of their positive reviews at the end of this article.)

2. Challenges Brought by the Tariff War

There are two main challenges here:

2.1 The Double Squeeze on Profits 

While technicians in Chinese dental labs are now highly experienced, with skills on par with their American counterparts, the industry still heavily relies on imports for high-end materials, core software, scanners, and 3D printers. This is because this technology often allows for more precise and efficient production.

(1) Since the tariff war, high-end scanners and dental materials (like premium porcelain powders, resins, and zirconia blocks) have also been hit with tariffs. This has increased the cost of our imported materials. To cope with the rising costs and uncertainty, some labs have had to increase their raw material inventory, which ties up more cash.

(2) At the same time, when our finished prosthetics are exported to the U.S., American clinics and labs have to pay high tariffs on them. This drives up the final cost of the exported product.

This situation has created a double squeeze on the profit margins of Chinese dental labs.

2.2 Unstable Orders from U.S. Clients 

For U.S. clients, the price increase caused by tariffs has naturally led some to reconsider outsourcing to China. They may start looking for suppliers in other countries not affected by the tariffs. This means that for Chinese dental labs, orders from American clients are no longer as stable as they once were.

3. What Can Chinese Dental Labs Do to Face These Challenges?

As history has shown, crisis often brings opportunity.

3.1 Diversify Material Sourcing

This is a chance to test more domestically produced materials, as well as those from Japan and South Korea, to reduce our reliance on U.S. imports. This can also encourage R&D and innovation among domestic material and equipment manufacturers, with the long-term goal of achieving self-sufficiency.

3.2 Improve Production Efficiency

We can refine our lab’s production line management and increase automation. For example, by using equipment that can run unattended, we can achieve 24-hour production in certain stages. Better workshop management can help us identify problems early, reduce remake and defect rates, and in turn, save on raw materials.

3.3 Expand to New Markets

To address the high tariffs on finished goods, our marketing departments need to shift their focus toward developing markets in Europe, Australia, and Southeast Asia. Relying solely on the U.S. market is passive and extremely risky in the current climate.

3.4 Invest in Advanced Skills

For more complex products like custom implant abutments and high-end aesthetic restorations, we should invest more in training for our technicians. This allows them to grow professionally, and their advanced skills will, in turn, benefit the lab.

3.5 Explore Overseas Operations

Larger dental labs could consider setting up facilities in tariff-free regions like Eastern Europe or Southeast Asia. Another option is acquiring small local labs in the U.S. This would help them both penetrate the European market and maintain relationships with American clients.

3.6 Strengthen Local Collaboration

It’s important to work together with other dental labs in the region. Increased communication, cooperation, and innovation can create a stronger, more resilient industry chain.

Conclusion

To my colleagues in the industry: This is a time filled with uncertainty. Like you, we are all dealing with the pressures of surging costs and market volatility. You are not alone; the entire industry is navigating this new landscape.

By staying positive and embracing change, we will get through this. I believe we will emerge even stronger and secure an even more important position in the global dental lab industry. Every challenge we overcome makes us stronger.