It's been a tumultous two months for the health care industry in China. Big pharma's fortunes have turned sour in a heartbeat after Beijing's investigations into GlaxoSmithKline (NYSE:GSK) -- which resulted in a number of arrests -- have morphed into probes of numerous countries in the world's hottest emerging markets. With many health care companies looking toward China and other developing economies for the future, the escalating situation has turned into a giant headache.

China's reportedly expanding its probes far beyond pharmaceutical companies -- and even the health care sector at large. However, for medical device makers, it's time to start paying attention to China's investigations if you haven't been so far.

According to Reuters, an industry body in China has begun investigating device makers in the country for any signs of price-fixing behavior. Nothing has turned up so far, but just how could this situation play out for the industry's top companies in the nation -- and in your portfolio? Fool contributor Dan Carroll explains the latest in the video below and tells you which companies have the most to lose in this fast-growing market.