The People’s Republic of China recently eased its restrictions on foreign capital investment in the health care industry to promote private medical institutes and the establishment of wholly foreign-owned medical institutes.

The People’s Republic of China National Development and Reform Commission, Ministry of Health (MOH), Ministry of Finance, Ministry of Commerce (MOC) and Ministry of Human Resource and Social Security jointly issued the Notice Regarding Further Promotion and Guidance for Private Capital to Invest in Medical Institutes (Notice) on 26 November 2010.

According to the Notice, restrictions on foreign capital investment into the medical arena have been eased to promote private investment. There are several notable changes...