China has approved 101 medical joint ventures and 48 of them
have gone into operation since 2000, according to the Ministry of
Health.
Since 2000, the Ministry of Health and Ministry of Commerce have
approved the establishment of medical institutions jointly
sponsored by domestic and foreign investors at a total cost of 11.5
billion yuan (US$1.4 billion).
The approved projects include 67 hospitals, 33 clinics and one
physical checkup center, according to health official Gao Guangming
at the second International Health Management and Health Insurance
Forum.
China issued a regulation on medical joint ventures in 2000 in
line with the China's government's commitment to joining the World
Trade Organization.
According to the regulation, foreign investors should spend at
least 20 million yuan (US$2.5 million) to set up a medical joint
venture, with a share holding of no more than 70 percent.
Government approval is needed if the investment is to be extended
to more than 20 years.
The regulation also set preferential policies for foreign
medical investment in western and underdeveloped regions.
However, independent foreign establishment of medical
institutions is still not allowed in China, and joint ventures are
not allowed to set up branches, said Gao.
China started allowing foreign investment in its medical sector
in 1989. Before 2000, there were about 200 medical institutions
jointly sponsored by domestic and foreign funds, but less than half
had official approval.
Vice minister of commerce Ma Xiuhong recently said that most of
the current medical joint ventures are located in developed areas
like Beijing, Shanghai and Guangdong, serving foreigners and
highly-paid Chinese employees.
The proportion of joint ventures in the medical sector was still
very small and most of them were small-scale clinics, according to
Ma.
(Xinhua News Agency November 8, 2006)
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