China to Permit Foreign-Owned Hospitals in Major Urban Centers
China has announced that it will fully open its manufacturing sector to foreign investments and allow more room for foreign capital in its health sector starting from November 1. The National Development and Reform Commission (NDRC) will remove the last remaining limits on overseas investments in the manufacturing sector and cut the list of restricted areas for foreign investors. Additionally, the government will promote the expansion of the service industry and encourage overseas investment access in that sector.
In the healthcare sector, China will permit the establishment of wholly foreign-owned hospitals in nine regions, including Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen, and Hainan. This policy excludes hospitals practicing traditional Chinese medicine and prohibits foreign mergers and acquisitions of public hospitals. Foreign capital will also be allowed to engage in the development and application of gene and stem cell technologies within pilot free trade zones in Beijing, Shanghai, Guangdong, and Hainan. The initiative aims to enhance the diversity of medical services, meet personalized health demands, and stimulate the healthcare market amid economic challenges and declining foreign business sentiment.
