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)