Chapter I　General Provisions

Article 1　Interim Administrative Measures for Chinese-foreign Joint Venture and Cooperative Medical Institutions (the "Measures") are formulated in accordance with the pertinent state laws and administrative regulations such as the Law of the People's Republic of China on Sino-Foreign Equity Joint Ventures, the Law of the People's Republic of China on Sino-Foreign Cooperative Joint Ventures, the Regulations for the Administration of Medical Institutions for the purposes of further catering to the needs of reforms and opening up to the outside world, enhancing the administration of Chinese-foreign joint equity venture and cooperative medical institutions and promoting the healthy development of the medical and health undertakings of the country.

Article 2　The term "Chinese-foreign joint venture medical institutions and Chinese-foreign cooperative medical institutions" as used for the purpose of the Measures refers to the medical institutions established in the forms of joint venture or cooperation by foreign medical institutions, companies, enterprises or other economic organizations (the "foreign joint venturers" or "foreign cooperators") with Chinese medical institutions, companies, enterprises or other economic organizations (the "Chinese joint venturers" or "cooperators") within the territory of China (Hong Kong, Macao and Taiwan are excluded, same below) on the basis of the principle of equality and mutual benefit and on approval of the Chinese government.

Article 3　The Measures apply to applications for the establishment of Chinese-foreign joint venture or cooperative medical institutions within the territory of China.

Article 4　Chinese-foreign joint venture medical institutions and Chinese-foreign cooperative medical institutions shall abide by the pertinent laws, administrative regulations and rules of the state. The legitimate operational activities of Chinese-foreign joint venture and cooperative medical institutions and the lawful rights and interests of parties thereto shall be protected by the laws of the land.

Article 5　The Ministry of Health and the Ministry of Foreign Trade and Economic Cooperation (the "MOFTEC") will be in charge of the administration of Chinese-foreign joint venture and cooperative medical institutions in accordance with the respective functions of the two ministries.

The administrative departments of health (including the competent departments in charge of Chinese traditional medicine/treatment) and the administrative departments of foreign trade and economic cooperation at and above the county level will be responsible for the administration of Chinese-foreign joint venture and cooperative medical institutions in their respective regions of jurisdiction according to their respective spheres of responsibility.

Chapter II　Conditions for Establishment

Article 6　The establishment and development of the Chinese-foreign joint venture and cooperative medical institutions will conform to the local regional health programs and the local regional plan for the establishment of medical institutions, and implement the Basic Standards for Medical Institutions formulated by the Ministry of Health.

Article 7　Both of the Chinese and foreign parties that apply for the establishment of a Chinese-foreign joint venture medical institution or a Chinese-foreign cooperative medical institution must be legal persons who can bear their civil liabilities independently. The Chinese and foreign parties to a joint venture medical institution or a cooperative medical institution shall have direct or indirect experience in medical and health investment and management, and shall meet one of the following requirements:

1. they are able to provide internationally advanced managerial experience in managing medical institutions, modes of management and modes of services;

2. they are able to provide international cutting-edge medical technologies and equipment, and

3. they can complement or make up for the inadequacy of local medical service capacity, medical treatment technologies, fund and medical facilities.

Article 8　A Chinese-foreign joint venture or cooperative medical institution to be established must satisfy the following conditions:

1. having an independent legal person;

2. having a total amount of investment not less than RMB 20 million;

3. having an equity proportion or interest the Chinese party to a Chinese-foreign joint venture medical institution or a cooperative medical institution hold therein not less than 30%;

4. having the time period for the joint venture or the cooperative medical institution not longer than 20 years; and

5. other conditions prescribed by the administrative departments of health at or above the provincial level.

Article 9　The Chinese party to a joint venture of cooperative medical institution must obtain the approval from the corresponding competent department of its investment therein with state-owned assets (including priced investment or as a condition for cooperation). The assets shall, in accordance with the pertinent provisions on the administration of asset valuation, be appraised by an asset appraisal agency recognized by the department of administration of state-owned assets before they are used as investment therein. The appraisal result confirmed by an administrative department of state-owned assets at or above the provincial level may be taken as the basis of pricing the state-assets to be invested in a joint venture or cooperative medical institution.

Chapter III　Examination, Approval and Registration of Establishment

Article 10　Application for the establishment of a Chinese-foreign joint venture or cooperative medical institution shall first be submitted to an administrative department of health at the municipal level (cities at the prefecture level) and the following materials are required:

1. A written application for the establishment of a medical institution;

2. Project proposals signed by the legal representatives of both of the Chinese and foreign parties to the joint venture or cooperative medical institution, and the feasibility study report on the establishment of the Chinese-foreign joint venture or cooperative medical institution;

3. The registration certificates (photocopies) of the Chinese and foreign parties, the identity certificates (photocopies) of the Chinese and foreign legal representatives and their credit reports by the bank.

4. The confirmation document from the administrative department of state-owned assets of the appraisal report on the state-owned assets to be used as investment therein.

The administrative department of health at the municipal level (cities at the prefecture level) must conduct a preliminary examination on the documents submitted by the applicants, and provide preliminary opinions in light of the regional health program and the regional plan for the establishment of medical institutions. It shall submit its preliminary opinions together with the application documents and the regional health program and the regional plan for the establishment of medical institutions to the administrative department of health of the province where it is located for examination.

Article 11　The administrative department at the provincial level shall, upon completion of the examination thereof, submit the application documents and the preliminary opinions of the municipal (city at the prefecture level) health administration department to the Ministry of Health for examination and approval. The administrative department of health at the provincial level shall, in submitting the above listed documents for approval, provide the following documentary information to the Ministry of Health:

1. the applicants' documents of application for the establishment;

2. the Plan for the Establishment of Medical Institutions promulgated upon approval of the people's government at the municipal level in the locality of the establishment of the medical institution, and the examination opinions of the administrative departments of health at the provincial and municipal levels about whether the proposed establishment of the Chinese-foreign joint venture or cooperative medical institution conforms to the local regional health program and the plan for the establishment of medical institutions;

3. the examination opinions of the administrative department of health at the provincial level on the establishment of the Chinese-foreign joint venture or cooperative medical institution, which include its opinions on the name, location, scale (number of hospital beds and dentist chairs), subjects and items of consultation and period of operation, etc. of the proposed Chinese-foreign joint venture or cooperative medical institution; and

4. other materials prescribed by the pertinent laws, administrative regulations and the Ministry of Health.

The Ministry of Health shall, within 45 working days as of the date of acceptance, make a written decision on whether to approve or disapprove the application.

Article 12　Applications for the establishment of Chinese-foreign joint venture or cooperative medical institutions of Chinese traditional medicine (including Chinese-foreign joint venture or cooperative medical institutions that combine Western medicine with traditional Chinese medicine and Chinese-foreign joint venture or cooperative medical institutions for ethnic medicine) shall be preliminarily examined by the municipal administrative departments of health in the localities where the medical institutions are to be established and be re-examined by the provincial administrative departments of health in the localities where they are to be established in accordance with the requirements in Articles 10 and 11 of the Measures, and be submitted to the State Administration of Traditional Chinese Medicine, which shall, upon completion of examination, refer the same to the Ministry of Health for approval.