Shanghai has announced plans to allow the establishment of wholly foreign-owned hospitals within the China (Shanghai) Pilot Free Trade Zone, as part of a broader initiative to deepen the opening-up of the healthcare sector. This move aims to enhance the diversity of healthcare services and improve the city's business environment.

Shanghai FTZ, along with other key economic areas such as Lin-gang Special Area, Hongqiao business district, and the eastern hub international business cooperation zone, will each accommodate up to two foreign-owned hospitals. These hospitals will be required to demonstrate advanced hospital management concepts, provide cutting-edge medical technologies and equipment, and complement local healthcare service capabilities.

Approved types of hospitals include general hospitals, specialized hospitals, and rehabilitation hospitals, all designated as tertiary medical institutions. However, they will be prohibited from engaging in high-risk medical and ethically-controversial activities.

This initiative is expected to attract foreign investment, promote high-quality development in medical services, and better meet the public's diverse healthcare needs, particularly for those seeking personalized, high-standard treatment plans.