Foreign Entities Can Now Invest in Elderly Care Services
Based on the Ministry of Civil Affairs official website recently published a circular that will encourage foreign investment in the elderly care services in China. According to a circular issued by the Ministry of Commerce and Ministry of Civil Affairs, foreign investors can now set up senior care institutes for profit independently or to cooperate with Chinese enterprises.
But before creating elderly care centers, these foreign investors must submit their application material to provincial level organs in charge of commercial affairs. Foreign investors are welcome to participate in the reform of State run elderly care organizations and to develop a high chain of quality institutes. These foreign investors will also enjoy the same favorable tax policies and administration fee and deductions policies like their domestic counterparts.
Since 2013 the population of residents that are or above 60 years of ages have already hit 202 million or around 15 percent of the population and is expected to exceed 300 million by 2025. But the number of medical personnel is only 6 million thus is difficult to satisfy a face to face demand for medical services for every senior citizen.
Then by the end of last year around 45,000 organizations provided essential services and products to seniors and almost 5 million beds for 200 million people giving them a person to bed ratio to 41:1. A recent study showed that the domestic market for providing essential services and products for the population is around 4 trillion yuan.