Healthcare and Foreign Hospitals in China

China announced plans to allow the establishment of wholly foreign-owned hospitals in nine areas of the country, as part of its efforts to attract more foreign investment and stimulate its economy.

According to the circular jointly issued by the Ministry of Commerce, National Health Commission, and the National Medical Products Administration the foreign-owned hospitals will be permitted to open in Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen and across the island of Hainan.

The new policy is a pilot project aimed at fulfilling a pledge made by the Communist Party's Central Committee during its July plenum to promote the high-quality development of China's medical sector and better meet the healthcare needs of its population

The circular excludes the Chinese traditional medicine sector, as well as mergers and acquisitions of public hospitals. Specific details, including conditions, requirements, and procedures for establishing foreign-owned hospitals, will be announced in a later date.

Additionally, the policy allows foreign-invested companies to engage in the development and application of gene and human stem cell technologies for treatment and diagnosis within the pilot free-trade zones of Beijing, Shanghai, Guangdong, and Hainan. This includes the registration, marketing, and production of products for national distribution.