By Patrick Wingrove and Michael Erman

SAN FRANCISCO (Reuters) - Philips CEO Roy Jakobs said he still expects subdued demand in China this year due to healthcare anti-corruption efforts by the Chinese government that has hurt revenue there for Western companies.

Jakobs in a Sunday interview said volatility in the Chinese market could increase this year depending on the foreign trade policies adopted by President-elect Donald Trump, who takes office Jan. 20. Trump has previously said he will hit China with new tariffs on the first day of his presidency.

"Anti-corruption is still continuing on the ground. We still see audits happening and a lot of scrutiny (over purchases)," Jakobs told Reuters at the annual JPMorgan health conference in San Francisco. "I think 2025 will still be a challenging year for China.” He previously said the Chinese have been auditing past purchases.

The Dutch healthcare technology company's Chinese sales had topped out above 13% of its total revenue earlier in the decade. Philips' offerings in China include diagnostic and monitoring equipment, as well as personal health products and appliances.

Due to the government anti-corruption efforts and slower growth in China, Jakobs said he now expects the biggest Asian market to be around 10% of the company’s revenue.

Philips is expected to report more than 18 billion euros ($18.39 billion) in 2024 revenue when it issues its full-year financial results next month.

Jakobs said he does expect the China market to recover based partly on meetings with Chinese government officials during a visit there in November, including regional officials who said they were still welcoming foreign businesses and investment but wanted to ensure fair procurement was taking place.

Beijing has been running a campaign targeting bribery of doctors that disrupts business and scuttles hospital deals with international healthcare companies.

Philips was one of several global companies to warn about the health of the Chinese economy last October, saying demand in the country had slumped significantly because of a deterioration of consumer confidence combined with the anti-corruption campaign.

Merck & Co also said in October that its results had been hit by weak sales of HPV vaccine Gardasil in China that were likely to carry over into 2025 - and could last the whole year - as the shot's distributor there reduces inventories amid lackluster demand.

AstraZeneca’s president of Chinese operations was arrested last year. The company has said it does not know basic facts about the detention, such as why he is being investigated.

($1 = 0.9790 euros)

(Reporting by Patrick Wingrove in San Francisco and Michael Erman in New York; editing by Caroline Humer and Bill Berkrot)