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China's State Council Approves Medical Rehabilitation and Nursing Expansion Plan: What Foreign Founders Need to Know

A practical guide for foreign founders on the State Council's approval of the Medical Rehabilitation and Nursing Expansion Plan, outlining key policy directions and local implementation requirements.

China's State Council Approves Medical Rehabilitation and Nursing Expansion Plan

On September 28, 2026, the State Council of China issued its official approval (Guohan [2026] No. 99) for the Implementation Plan for the Medical Rehabilitation and Nursing Expansion and Improvement Project. The plan was submitted by the National Health Commission and the National Development and Reform Commission. For foreign founders considering entry into China's healthcare sector, this approval signals the government's policy direction and outlines how the plan will be implemented at national and local levels.

What the Approval Says

The State Council has in principle agreed to the plan and requires its serious implementation. The approval document sets out several guiding principles and instructions for implementation:

• Guiding ideology: The plan must follow Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the spirit of the 20th Party Congress and subsequent plenary sessions, and adhere to the path of health development with Chinese characteristics.
• National strategies: Implementation should advance the health priority development strategy and the national strategy of actively responding to population aging.
• Core focus: The plan centers on "expansion, quality improvement, balance, and continuity." It prioritizes primary-level (grassroots) facilities and aims to increase the supply of medical rehabilitation and nursing resources in a coordinated manner.
• Service system goals: The objective is to accelerate the construction of a medical rehabilitation and nursing service system that is fully functional, vertically linked, integrates traditional Chinese and Western medicine, and is efficient and accessible.
• Ultimate aim: Better meet the health needs of the entire population, across all dimensions and throughout the life cycle.

Roles and Responsibilities

The approval clarifies the responsibilities of different levels of government:

• Provincial governments: Provincial, autonomous region, and municipality governments must strengthen organizational leadership, clarify division of responsibilities, and detail implementation measures to ensure the plan's objectives and policies are delivered. Localities are encouraged to leverage their own advantages and innovate measures suited to local conditions.
• State Council departments: Relevant departments and units under the State Council must strengthen coordination, provide guidance, and detail specific support measures to form a policy synergy for the expansion and improvement of medical rehabilitation and nursing.
• Lead agencies: The National Health Commission and the National Development and Reform Commission are tasked with strengthening overall coordination, tracking progress, and summarizing and promoting typical experiences in a timely manner. Major issues must be reported to the Party Central Committee and the State Council through established procedures.

Implications for Foreign Founders

While the approval document does not introduce specific market access rules for foreign investors, it provides important context for those exploring opportunities in China's healthcare sector:

• Policy priority: The plan underscores the government's focus on expanding and improving rehabilitation and nursing services, particularly at the primary level. This may create demand for related products, services, and expertise.
• Local innovation: Provinces are encouraged to innovate according to local conditions, which could lead to varied implementation approaches across regions. Foreign founders should monitor local policies in their target markets.
• Coordination mechanisms: The involvement of the National Health Commission and the National Development and Reform Commission suggests that future regulations and support measures will be coordinated across these bodies.
• Compliance: Foreign-invested enterprises in China must still adhere to existing laws and regulations, including those on foreign investment, healthcare services, and business registration. The approval does not alter these requirements.

Practical Steps for Foreign Founders

If you are considering establishing a presence in China's healthcare or rehabilitation sector, here are some practical steps based on the information in the approval:

• Stay informed: Follow announcements from the National Health Commission, National Development and Reform Commission, and local health authorities for detailed implementation rules and local plans.
• Engage with local authorities: Provincial governments will be responsible for detailed implementation; understanding local conditions and priorities is essential.
• Review investment rules: Ensure compliance with China's foreign investment negative list and sector-specific regulations for healthcare services.
• Prepare for coordination: Successful entry may require engagement with multiple government agencies; building a clear compliance and government relations strategy is advisable.

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

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.