Published by ChinaMNC · ningxia

China Approves Plan to Expand Medical Rehabilitation and Nursing Services: What Foreign Founders Need to Know

China's State Council has approved a national plan to expand and improve medical rehabilitation and nursing services. For foreign founders, this signals potential opportunities in healthcare investment and service provision. Here's what the approval means for company registration and operations.

Key Takeaways for Foreign Founders

The State Council's approval of the Medical Rehabilitation and Nursing Service Expansion and Improvement Project Implementation Plan (国函〔2026〕99号) sets a national direction for increasing and upgrading rehabilitation and nursing care services across China. While the plan itself does not create new registration procedures, it clarifies policy priorities that can affect market entry and regulatory expectations for foreign-invested healthcare businesses.

• Policy focus: The plan emphasizes expanding supply, improving quality, balancing regional resources, and ensuring continuity of care, with a priority on primary-level services.
• Service model: It aims to build a system that is functional, vertically integrated, combines Chinese and Western medicine, and is efficient and accessible.
• Implementation: Provincial governments are tasked with organizing implementation and encouraging local innovation; relevant State Council departments will provide support and oversight.

For foreign founders considering healthcare-related investments, this indicates a supportive policy environment for rehabilitation and nursing services. However, specific market access rules, licensing, and foreign investment restrictions still apply.

What the Plan Covers

The approved plan is officially titled the Medical Rehabilitation and Nursing Service Expansion and Improvement Project Implementation Plan. It was submitted by the National Health Commission and the National Development and Reform Commission, and the State Council gave its in-principle approval on September 28, 2026.

The plan's stated objectives include:

• Increasing the supply of medical rehabilitation and nursing resources, with a focus on grassroots levels.
• Improving service capacity and quality.
• Building a service system that is well-functioning, linked across levels, integrates Chinese and Western medicine, and is efficient and accessible.
• Meeting the health needs of the entire population across all life stages.

These goals are to be pursued under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and in line with the Healthy China strategy and the national strategy for actively responding to population aging.

Implications for Foreign Company Registration

The plan does not alter the fundamental procedures for registering a foreign-invested enterprise (FIE) in China. However, it may influence the regulatory landscape for healthcare service companies. Here's what foreign founders should keep in mind:

1. Entity Choice and Market Access

Foreign investment in healthcare services is subject to the Negative List for Foreign Investment Access. Medical institutions are generally allowed as wholly foreign-owned enterprises (WFOEs) or joint ventures, but specific requirements may apply. The plan's emphasis on expanding rehabilitation and nursing services could mean that local authorities are more receptive to such projects, but formal approval from health authorities is still required.

2. Registration Steps and Documents

Registering a healthcare company typically involves:

• Name pre-approval with the local Administration for Market Regulation (AMR).
• Obtaining approval from the health commission for the establishment of a medical institution.
• Submitting articles of association, capital verification, and identification documents of legal representatives and directors.
• Registering with the tax authorities and obtaining necessary licenses (e.g., Medical Institution Practice License).

These steps remain unchanged; the plan does not introduce new documentary requirements.

3. Capital and Investment

There is no specific capital requirement mentioned in the approval. Foreign investors should follow the Company Law and foreign investment regulations regarding registered capital, which may vary by entity type and local regulations. The plan does not set minimum capital thresholds.

4. Taxation and Compliance

Healthcare services may be eligible for certain tax incentives under existing laws, but the plan does not introduce new tax measures. Foreign companies must comply with China's tax regulations, including corporate income tax, value-added tax, and withholding tax on dividends. Regular reporting and adherence to healthcare regulations are essential.

Local Implementation and Innovation

Provincial governments are encouraged to adapt the plan to local conditions and innovate in expanding rehabilitation and nursing services. For foreign founders, this means that local policies and incentives may vary by province or municipality. It is advisable to consult local health commissions and investment promotion agencies to understand specific opportunities and requirements.

The National Health Commission and the National Development and Reform Commission will coordinate implementation, track progress, and promote best practices. This central oversight suggests that the policy direction is stable, but local experimentation may lead to differing regulatory practices.

Practical Considerations for Foreign Founders

While the plan is not a registration guide, it signals government priority. Foreign founders interested in rehabilitation and nursing services should:

• Monitor local implementation rules and pilot programs.
• Engage early with local health authorities to understand licensing pathways.
• Ensure compliance with foreign investment negative list and healthcare regulations.
• Consider partnering with local entities to navigate regulatory and operational complexities.

The approval does not provide guarantees of success or specific incentives, but it does indicate a supportive policy environment for expanding these services.

Conclusion

The State Council's approval of the Medical Rehabilitation and Nursing Service Expansion and Improvement Project Implementation Plan highlights a national focus on strengthening rehabilitation and nursing care. For foreign founders, this may open doors to investment and service provision, but it does not change the fundamental registration and compliance requirements for foreign-invested enterprises. Staying informed about local implementation and maintaining close dialogue with authorities will be key.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

Call to Action: Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.