China Expands Approval for Foreign-Owned Hospitals in More Regions
China’s Ministry of Commerce, the National Health Commission (NHC), and the National Medical Products Administration (NMPA) have recently issued a notice to launch a pilot program aimed at expanding openness in the medical sector. The program focuses on two sectors, biotechnology and wholly foreign-owned hospitals. By attracting foreign investment, this initiative aims to promote high-quality development within China’s medical sector and better meet the healthcare needs of the population.
Biotechnology Sector: The program allows foreign-invested enterprises to engage in the development and application of human stem cell therapies, gene diagnostics, and treatment technologies within China’s four Pilot Free Trade Zones in Beijing, Shanghai, Guangdong, and Hainan. These activities aim to facilitate product registration, market-entry, and production. Once products are registered, approved, and authorized for production, they will be available nationwide. Enterprises participating in these pilot programs must comply with China’s laws, administrative regulations, and other requirements. This includes adhering to regulations on human genetic resources management, drug clinical trials (including international multi-center clinical trials), drug registration and market entry, drug production, and ethical review processes, along with fulfilling all necessary management procedures.
Wholly Foreign-Owned Hospitals Sector: The program proposes allowing the establishment of wholly foreign-owned hospitals (excluding those focused on traditional Chinese medicine and the acquisition of public hospitals) in key cities, including Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen, and across Hainan Island. Specific conditions, requirements, and procedures for setting up these hospitals will be announced separately.
Medical services in China are primarily provided by healthcare institutions, including hospitals, grassroots healthcare institutions, and specialized public healthcare institutions. By the end of 2023, China had a total of 38,335 hospitals, comprising 11,772 public hospitals and 26,583 private hospitals. Public hospitals are the main providers of medical services, with 3,560 million patient visits annually, accounting for 37.2% of China’s total 9,550 million patient visits in 2023. Despite having more than twice the number of public hospitals, private hospitals accounted for only 8.3% of the total patient visits in 2023.
