Published by ChinaMNC · Yongqiao

China's Health Reforms: What Foreign Founders Need to Know

A practical overview of China's healthcare system developments and their implications for foreign entrepreneurs setting up or running a business in China.

Why China's Health System Matters to Foreign Founders

For foreign founders registering or operating a company in China, understanding the direction of the country's health policies can inform decisions about employee benefits, location, and long-term planning. The source article outlines broad health system developments under the leadership of Xi Jinping since the 18th National Congress of the Communist Party of China. Below is a factual summary of those developments, framed for practical awareness.

Key Policy Milestones

Since 2012, the Chinese government has prioritized public health in its national strategy. In 2016, the National Health Conference established a new health work guideline, shifting the focus from treating diseases to promoting overall health. The "Healthy China 2030" plan followed, providing a roadmap. In 2019, the Basic Medical Health and Promotion Law was enacted, China's first foundational law in this field. These steps create a stable policy environment for businesses operating in China.

Major Health System Achievements

China has built the world's largest medical service system, traditional medicine system, disease prevention and control system, and medical security system. These achievements indicate a robust infrastructure that can support a healthy workforce. For foreign founders, this means access to a wide range of medical services and a growing emphasis on preventive care.

Public Health Campaigns

The government promotes nationwide campaigns to reduce salt, oil, and sugar intake, encourage balanced diets and regular exercise, and improve sanitation through the "Toilet Revolution." Such initiatives reflect a broader push toward health awareness that can complement corporate wellness programs.

COVID-19 Response

During the pandemic, the government prioritized people's lives and health, and efficiently coordinated epidemic control with economic and social development. This approach helped mitigate health risks and supported business continuity.

Focus on Children's Eye Health

Xi Jinping has expressed concern over the high incidence of myopia among students. As a result, efforts to promote eye health among children and adolescents have been strengthened. From 2021 to 2025, the overall myopia rate among Chinese students declined for five consecutive years, reaching 49.9% in 2025, a cumulative drop of 3.7 percentage points from 2018. For foreign founders with families, this indicates a growing focus on child health in schools.

Improved Health Indicators

By 2025, China's average life expectancy rose to 79.25 years, with major health indicators ranking among the top for middle-income and populous countries. Infant mortality fell to 3.8 per 1,000, and maternal mortality to 13.4 per 100,000. The country was listed by the World Health Organization as a high-performing country for maternal and child health. Premature mortality from major chronic diseases dropped to 13.8%. Malaria has been eliminated, and China entered the ranks of low-to-mid tuberculosis burden countries for the first time. HIV/AIDS, hepatitis B, and other major infectious and endemic diseases are effectively controlled. The incidence of vaccine-preventable diseases such as measles, Japanese encephalitis, and epidemic cerebrospinal meningitis has reached historically low levels. Residents' health literacy rose to 33.69%. These statistics suggest a healthier population and improved public health environment.

Strengthening Primary Healthcare

The government emphasizes shifting healthcare resources to grassroots levels. At a health center in Shiyè town, Zhenjiang, Jiangsu, Xi Jinping called for moving medical work and resources downward to equalize basic public services and provide safe, effective, convenient, and affordable care. Telemedicine is promoted to balance resources, as seen in a 2020 visit to a health center in Pingli County, Shaanxi. Such measures aim to address difficulties in accessing and affording healthcare for grassroots populations.

Healthcare Reform

Comprehensive reforms have been implemented, including the separation of drug sales from hospital revenue, modern hospital management, centralized drug procurement, and adjustments to medical service pricing. The proportion of personal health expenditure to total health spending has fallen to 27.1%. The goal is to ensure major illnesses are treated within the province, general illnesses at city and county levels, and common ailments at grassroots facilities.

Infrastructure and Workforce

To date, 125 national regional medical center projects are supported, with 75% located in central and western regions where quality medical resources are relatively scarce. Close-knit county medical communities are being built in 2,199 counties (cities, districts), basically covering all counties and county-level cities. Over 90% of residents can access nearby medical services within 15 minutes. Counties with populations over 100,000 can provide hemodialysis services, and secondary and tertiary public general hospitals offer pediatric services. Primary medical institutions account for over 50% of total diagnoses and treatments nationwide. There are 42,200 traditional Chinese medicine clinics in primary healthcare institutions, and 80% of township health centers and community health service centers can apply appropriate TCM techniques. These developments enhance the accessibility of healthcare services across the country.

Implications for Foreign Founders

For foreign entrepreneurs, these health system improvements mean a more reliable healthcare infrastructure for employees and families. The emphasis on primary care and telemedicine may facilitate access to medical services in various locations. The stable policy environment and ongoing reforms could reduce uncertainties related to employee health benefits. When registering a company in China, founders should consider how these health policies might affect their operations and employee welfare.

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 or WeChat at +86 153 1898 8535.