On the afternoon of 28 October 2025, the BritCham Shanghai Legal & Regulatory Committee hosted an insightful panel discussion, “New Regulations and Opportunities for Foreign Investors in Healthcare Investment”.
The session, moderated by Selena She, Partner at Llinks Law Offices, featured distinguished panellists:
The discussion revealed a consensus that, while China is actively opening its healthcare industry to foreign investment, success requires navigating a complex landscape where high-level policy directives often meet practical implementation hurdles.
Policy Promise vs. Operational Reality
The panel examined recent pivotal regulations, including the Work Plan for Accelerating the Comprehensive Pilot Program for Further Opening Up the Services Sector, which permits 100% foreign-owned hospitals in key regions like Beijing, Shanghai, and Hainan.
Drawing on firsthand experience, Dr. Hsiang acknowledged the positive intent of these policies but highlighted a significant gap between central government directives and local-level execution. Key operational challenges identified included regulatory barriers to conducting advanced clinical trials and restrictive licensing frameworks that limit the pool of available internationally trained nursing staff. This creates a paradox where the system is more open to foreign doctors than to other critical healthcare professionals.
A Call for a Tiered Playing Field
A central theme was the call for a more level competitive landscape between high-quality private providers and public hospitals. The panel advocated for a tiered regulatory system that would distinguish serious, standards-driven healthcare institutions from others. It was noted that while foreign-invested hospitals are often held to international accreditations, they still face limitations in areas such as academic affiliation and resource access compared to their public counterparts.
The Localisation Imperative: “In China, For China”
From a multinational corporation’s perspective, Yue emphasised the imperative for deep localisation. Success hinges on building trust and tailoring innovation specifically for Chinese consumers. The panel noted that domestic competitors are advancing rapidly, making genuine localisation—from R&D to market strategy—a critical differentiator for foreign players aiming to maintain a competitive edge. Navigating a complex commercial ecosystem with numerous sales channels was cited as a key operational reality.
A Vibrant Financial Ecosystem
In contrast to the operational challenges, Aimee Zhang presented the financial landscape for healthcare multinationals in China as robust and supportive. Highlighted trends included a rise in mergers and acquisitions, attractive local financing options due to low interest rates, a growing market for Panda Bonds, and increasingly streamlined cross-border cash management solutions. This active financial ecosystem signals strong institutional support for the sector’s continued growth.
Future Frontiers: Medical Tourism and Healthy Ageing
The conversation also explored future growth vectors. The potential for medical tourism was acknowledged, though it is currently hindered by the lack of a dedicated medical visa. Additionally, services catering to China’s ageing population—encompassing elderly care, palliative services, and the burgeoning “health span” market focused on quality of life—were identified as nascent but promising sectors ripe for future investment.
Conclusion: A Market of Long-Term Strategic Value
The panel concluded that, despite persistent granular challenges, the fundamental drivers—including strong government prioritisation of healthcare quality and a vast, evolving consumer base—secure China’s position as an indispensable long-term strategic market. The companies best positioned to thrive will be those that combine regulatory patience with a deeply localised, consumer-first strategy.
