China to relax foreign investment in hospitals, M'sian IHH may benefit

More healthcare providers will now look to operating in China now that the country is relaxing foreign investment in hospitals. China is already an appealing market for pharmaceutical firms and medical-equipment makers, with spending in the industry expected to nearly triple to US$1tril by 2020 from US$357bil in 2011, according to consulting firm McKinsey - AFP Photo.

BEIJING/SHANGHAI: China will ease curbs on foreign investment in joint-venture hospitals, the government said on Wednesday, as it deepens a sweeping overhaul of its healthcare system aimed at cutting costs and sprucing up overloaded public services.

China is an appealing market for pharmaceutical firms and medical-equipment makers, with spending in the industry expected to nearly triple to US$1tril by 2020 from US$357bil in 2011, according to consulting firm McKinsey.In a healthcare reform plan for 2014 published on its website, China's cabinet, the State Council, said it aimed to relax limits on foreign investment in hospitals on the mainland.