China-Australia FTA opens up investor access

 18-Jun-15, Lexology 

On June 17, 2015, the China-Australia Free Trade Agreement (“ChAFTA”) was officially signed by Australia’s Trade Minister Andrew Robb and China’s Commerce Minister Gao Hucheng. 

With respect to health services, ChAFTA increases foreign investors’ access to medical services and hospitals, enables certain qualified foreign physicians to offer services in China, permits the establishment of wholly foreign owned aged care institutions, and promotes cooperation in the field of Traditional Chinese Medicine (“TCM”) services.

Image: The Conversation

Under the 2014 “Circular on Carrying out the Pilot Programs of Establishing Wholly Foreign-Owned Hospitals” foreign investors can only establish medical institutions with Chinese partners in the forms of equity joint ventures or cooperative joint ventures.

ChAFTA allows qualified service providers from Australia to incorporate or acquire hospitals that are wholly owned by Australians (except Traditional Chinese Medicine hospitals in certain areas). In addition, Australian service suppliers are permitted to establish joint venture hospitals or clinics with Chinese partners while maintaining majority foreign ownership. ChAFTA also allows qualified Australian service providers to establish wholly foreign-owned for-profit aged care institutions.

According to ChAFTA, foreign doctors with professional certificates issued by Australia may be permitted to provide short-term medical services in China.

 Read the full article  

 Elsevier APAC Healthcare Update