Huawei Finds Loophole in Law to Make Watch D2 Smartwatch a Hit

Huawei has found an unusual way to boost sales of its Watch D2 smartwatch despite weak consumer demand in China – the company has registered it as a medical device, since in addition to standard heart rate monitoring, the watch can also measure blood pressure.

Chinese consumers have discovered that health insurance will in some cases cover the purchase of the Huawei Watch D2 smartwatch, without having to pay for it out-of-pocket. The device has been available in Chinese pharmacies since November, and has proven so popular that stocks are quickly running out, forcing potential buyers to order them in advance.

Users of the Xiaohongshu resource, which combines the functions of a social network and an e-commerce platform, openly write that the device was registered as a medical device thanks to its blood pressure monitoring function. This means that the smartwatch can be partially or fully paid for, depending on the regulations in each region, using state insurance — it acts as a coupon or code for a discount. Huawei has ensured its sales growth at a time when the Chinese authorities are trying to stimulate consumer spending — the crisis in the real estate sector and trade tensions have become negative factors for economic growth.

China’s health insurance program covers about 95% of the country’s 1.4 billion population. Individual accounts of residents receive a certain amount of money every month, which they can use to buy medicines and medical equipment, including thermometers, blood pressure monitors, and glucometers. These funds cannot be used for other purposes; if a person does not spend money on treatment, a significant amount can accumulate in their account.

The Huawei Watch D2 smartwatch retails for 2,988 yuan ($409) and has a wide range of features, including monitoring blood pressure, heart rate, sleep quality, and step counting. The device, classified as a medical device, is sold in pharmacies across China. In Shanghai, sales have been limited to one unit per person; in some cases, consumers are required to activate them immediately upon purchase to prevent subsequent resale. Huawei itself, in its advertising materials, indicates that the Watch D2 is a “wrist blood pressure recorder,” although the smartwatch is almost ten times more expensive than a regular tonometer.

Social media users have questioned whether the device is right to be classified as medical equipment just because it can measure blood pressure, raising concerns that other manufacturers will exploit the loophole, putting a strain on China’s health insurance fund. Authorities in the eastern city of Ningbo have been forced to temporarily halt such purchases, citing the smartwatch’s many other features. Officials said they are discussing the issue and will inform pharmacies when they make a decision.