Published by ChinaMNC · Zhangdian

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

China's State Council has approved a plan to expand and improve medical rehabilitation and nursing services. This article outlines the key points for foreign founders operating or registering a company in China's healthcare sector.

State Council Approval of the Medical Rehabilitation and Nursing Expansion Plan

The State Council of China has issued a formal reply approving the Medical Rehabilitation and Nursing Expansion and Enhancement Project Implementation Plan (the Plan). The reply, numbered Guohan [2026] No. 99, was sent to the National Health Commission and the National Development and Reform Commission. For foreign founders with interests in China's healthcare, elderly care, or rehabilitation sectors, this signals a policy direction that may shape market opportunities and regulatory expectations.

Key Policy Objectives

The Plan is to be implemented under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and in line with the spirit of the 20th National Congress of the Communist Party of China and its plenary sessions. It reaffirms a commitment to a health development path with Chinese characteristics and the national strategies of prioritizing health and actively responding to population aging. The core focus is on four themes: expansion, quality improvement, balance, and continuity. Resources for medical rehabilitation and nursing are to be increased with an emphasis on primary-level facilities, service capacity strengthened, and a system built that is functionally complete, vertically coordinated, integrates traditional Chinese and Western medicine, and is efficient and accessible. The ultimate goal is to meet the health needs of the entire population across all dimensions and throughout the life cycle.

Implementation Responsibilities

Provincial, autonomous region, and municipal governments are tasked with strengthening leadership, clarifying responsibilities, and detailing implementation measures to ensure the Plan's objectives and policies are carried out. Localities are encouraged to leverage their own advantages and innovate tailored measures for expanding and upgrading medical rehabilitation and nursing services. Meanwhile, relevant State Council departments and units are required to coordinate, provide guidance, and refine specific support measures to form a policy synergy. The National Health Commission and the National Development and Reform Commission are specifically assigned to enhance overall coordination, track progress, and summarize and promote typical experiences in a timely manner. Major matters are to be reported to the CPC Central Committee and the State Council through established procedures.

Implications for Foreign Founders

Foreign founders looking to enter or expand in China's healthcare sector should note that the Plan emphasizes primary-level care, integration of Chinese and Western medicine, and continuity of services. This may open avenues in community-based rehabilitation, home nursing, and elderly care services. However, the Plan does not specify market access rules or foreign investment conditions. Foreign investors must still comply with China's negative list for foreign investment and sector-specific regulations. The approval is a high-level policy document, and practical implementation will depend on subsequent local measures and departmental guidelines. Founders are advised to monitor announcements from the National Health Commission and local health commissions for detailed rules and pilot programs.

Operational Considerations

When registering a company in China, foreign founders should ensure their business scope aligns with the encouraged activities in the Plan. The emphasis on primary-level and balanced development suggests that opportunities may exist beyond tier-one cities. However, the Plan does not provide tax incentives or guarantees. Founders should conduct due diligence on local regulations, licensing requirements for medical institutions, and qualification standards for healthcare personnel. The Plan encourages local innovation, so regional variations in implementation are likely. Engaging with local authorities and industry associations can help clarify expectations.

Next Steps

The State Council's reply authorizes the National Health Commission and the National Development and Reform Commission to proceed with implementation. Foreign founders should watch for the publication of the full Plan text and any accompanying guidelines, which may detail specific targets, timelines, and support mechanisms. Until then, the approval itself confirms a strategic direction rather than immediate operational changes. Founders are encouraged to review their China market strategy in light of this policy signal, while awaiting further details.

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