Order of the Ministry of Health and the Ministry of Foreign Trade and Economic Cooperation of the People's Republic of China

（No. 11）

The Interim Measures for the Administration of Sino-Foreign Joint and Cooperative Medical Institutions are hereby promulgated and shall come into force from July 1, 2000.

May 15, 2000

Interim Measures for the Administration of Sino-Foreign Joint and Cooperative Medical Institutions

Chapter I General Provisions

Article 1 These Measures have been enacted in accordance with the Law of the People's Republic of China on Sino-Foreign Joint Ventures, the Law of the People's Republic of China on Sino-Foreign Cooperative Ventures, Regulations on the Administration of Medical Institutions and other laws and regulations for the purpose of meeting the demand of carrying out the reform, opening up to the outside world, strengthening the administration of Sino-Foreign joint and Sino-Foreign cooperative medical institutions, and promoting the healthy development of the medical and hygiene undertaking of our country.

Article 2 The “Sino-Foreign joint and Sino-Foreign cooperative medical institution” in These Measures means a medical institution established, in conformity with the principle of equality and mutual benefit and upon the approval of competent authorities of the Chinese government, by a foreign medical institution, company, enterprise or other economic organizations （hereinafter referred to as the “Foreign Party”） and a Chinese medical institution, company, enterprise or other economic organizations （hereinafter referred to as the “Chinese Party”）within the territory of the People's Republic of China on the basis of joint investment or cooperation.

Article 3 Any application for establishing a Sino-Foreign joint or cooperative medical institution shall be governed by These Measures.

Article 4 Any Sino-Foreign joint or cooperative medical institution shall observe the laws, regulations and rules of China. The lawful operation of the Sino-Foreign joint or cooperative medical institution and the lawful rights and interests of the parties to the institution shall be protected by Chinese laws.

Article 5 The Ministry of Health and the Ministry of Foreign Trade and Economic Trade （“MOFTEC”） are responsible for the administration of all Sino-Foreign joint and Sino-Foreign cooperative medical institutions nationwide within their respective scope of official duties.

The health administrative authorities of the local people's government on the county level or above （including the traditional Chinese medical treatment or traditional Chinese medicine administrations） and the administrative departments in charge of foreign trade are responsible for the regular supervision and administration of the Sino-Foreign joint and cooperative medical institutions within their respective scope of official duties and their respective jurisdictions.

Chapter II Conditions for Establishment

Article 6 The establishment and development of Sino-Foreign joint and Sino-Foreign cooperative medical institutions must be in conformity with the health plan and the plan for the setup of medical institutions of all jurisdictions and for which the Basic Standards for Medical Institutions as stipulated by the Ministry of Health must be carried out.

Article 7 Both parties applying for the establishment of a Sino-Foreign joint or Sino-Foreign cooperative medical institution shall be a legal person with a capability of independently undertaking civil liabilities. Both parties shall be directly or indirectly experienced in the investment and management of medical institutions, and shall meet one or more of the following requirements:

1. Capable of providing internationally advanced managerial expertise, management pattern or service pattern of medical institutions;

2. Capable of providing internationally advanced medical technologies and equipment;

3. Able to narrow the gap in or improve medical service capability, medical technologies, funding and equipment of the jurisdiction.

Article 8 The Sino-Foreign joint or cooperative institution to be established shall satisfy all the requirements as mentioned below:

1. It shall be an independent legal person;

2. The total investment shall not be lower than RMB 20,000,000 Yuan;

3. The proportion of shares or interests of the Chinese party to the Sino-Foreign joint or cooperative medical institution shall not be lower than 30%;

4. The term of the medical institution shall not be longer than 20 years;

5. Other conditions as prescribed by the health administrative authorities on the provincial level or above.

Article 9 Where the Chinese Party makes its contribution by way of state-owned assets （either evaluated assets or as a condition for cooperation）, approval of competent government authorities shall be obtained for investment, and evaluation shall be made on the state-owned assets by evaluation agencies approved by the state-owned assets administrations in accordance with the provisions concerning the evaluation of state-owned assets. The evaluation results approved by the state-owned assets administrations on the provincial level or above may be used as a basis of the value of the state-owned assets to be contributed to the medical institution.

Chapter III Approval and Registration

Article 10 Before a joint medical institution is established, an application shall be filed with the health administrative authorities on the municipal level or above of the place where the institution is to be set up, and the materials as mentioned below shall be submitted:

1. An application for the establishment of a medical institution;

2. A project proposal and feasibility study report signed by the legal representative of both parties to the Sino-Foreign joint or cooperative medical institution;

3. Certificates of registration （in duplicate）, identification certificate of the legal representatives （in duplicate） and certificate of creditworthiness of both parties to the medical institution;

4. Confirmation documents of the evaluation report presented by state-owned assets administrative authorities concerning the evaluation of state-owned assets to be contributed.

A preliminary examination shall be made by the health administrative authorities of the city which is divided into districts over the materials submitted by applicants and initial opinions be issued in conformity with the local health plans and plans for the setup of medical institutions. The initial opinions, together with the application materials, the local health plans and plans for the setup of medical institutions shall be reported to the health administrative authorities on the provincial level for verification.

Article 11 The health administrative authorities on the provincial level shall make verifications over the application materials and the initial opinions of the administrative authorities of the city which is divided into districts and then report to the Ministry of Health for examination and approval.

The following materials shall be submitted by the health administrative authorities on the provincial level for examination and approval:

1. Application materials of the applicant;

2. Plan for the Setup of Medical Institutions approved by the people's government of the city with districts of the place where the institution is to be set up for promulgation and implementation, and opinions of the health administrative authorities on the municipal and provincial levels of the place where the institution is to be set up about whether the establishment of the Sino-Foreign joint or cooperative medical institution is in conformity with the health plans and plan for the setup of medical institutions of the jurisdiction;

3. Opinions of the health administrative authorities on the provincial level concerning the establishment of the Sino-Foreign joint or cooperative medical institution, including opinions about the title, site, scale （sickbeds, dental chairs）, business scope and term of duration of the medical institution;

4. Other materials as required by laws, regulations and stipulations of the Ministry of Health.