China will allow foreign investors to establish wholly-owned hospitals in the country, a move that could give a boost to its healthcare sector and help to reduce the growing number of Chinese patients seeking medical treatment overseas.
The new policy was announced by the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) in a joint statement on Wednesday. The statement said that foreign investors will be allowed to establish wholly-owned hospitals in pilot free trade zones and other areas designated by the government.
The move is a significant departure from China’s previous policy, which only allowed foreign investors to establish joint ventures with Chinese partners in the healthcare sector. The new policy is expected to attract foreign investment in China’s healthcare sector, which is currently dominated by state-owned hospitals.
The Chinese government has been trying to reform its healthcare system for many years, but progress has been slow. The system is plagued by long waiting times, high costs, and a shortage of qualified doctors and nurses.
The government hopes that allowing foreign investment in hospitals will help to improve the quality of healthcare in China and reduce the number of Chinese patients seeking medical treatment overseas. Foreign hospitals are often seen as providing better quality care than Chinese hospitals, and they are also more likely to have access to the latest medical technology.
However, some experts have expressed concerns that allowing foreign investment in hospitals could lead to higher healthcare costs for Chinese patients. They argue that foreign hospitals are likely to charge higher prices for their services than Chinese hospitals.
The government has said that it will take steps to ensure that foreign hospitals do not charge excessive prices. The government will also require foreign hospitals to meet the same standards of care as Chinese hospitals.
The new policy is expected to have a significant impact on China’s healthcare sector. It is likely to attract foreign investment and help to improve the quality of healthcare in China. However, it is also important to ensure that the new policy does not lead to higher healthcare costs for Chinese patients..
