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The Chinese government encourages foreign investors to establish age care institutions in China.
It was hard to find an empty bed in the age care institutions in China in the 1990s. The situation continued to be difficult for decades. The Chinese government’s 12th Five-year Plan attaches great importance to this problem, which is thought to be an obstacle on people’s way of improving their livelihood.
According to Dou Yupei, Minister of Civil Affairs of China, the number of age care institutions will increase by 50% in the next five years. Relevant policies and administration will then be changed. In addition, foreign investors are encouraged to take part in the construction of age care institutions.
Dou Yupei says that the Ministry of Civil Affairs has already made special plan for the development of China’s healthcare system for the elderly. The plan reveals that there will be 30 beds available for 100 people, making the proportion between the number of beds and aged people come out at 30%. “There are total 2.3 million beds now for the aged in China. The number will be doubled if the proportion is improved to 30%. In other words, we have to manage to provide the required amount of beds in five years that we used to provide in the past 60 years.”
It is of course a tough task. Dou Yupei says that the social force is needed in addition to the government’s investment. China has already worked out a series of favorable policies of water and gas supply and taxation for the foreign investors to develop to their age care industry.
Currently quite a few foreign investors have been engaged in establishing age care institutions in China. There is no restriction on establishing age care institutions and the Chinese government has given the public and private age care institutions favorable conditions on taxation, medicine and water and gas supply. But some local administrators worry that foreign investors, given the same favorable conditions, will misuse this opportunity and turn pensions of the Chinese elderly into their profits.
In China, establishing and running an age care institution involves profitable as well as non-profitable goals. On one hand, an age care institution must provide good service for its residents. On the other, aged care institutions, especially the private ones, must have profits from their operations. The low return on investment, the long payback period and the complicated management are the factors that prohibit foreign investors from taking part in establishing age care institutions in China.
The experts think that the economic and social development in China give Chinese people a new understanding about age care. Age care can be divided into different levels, such as general consumption commodities. The high-quality age care services are more expensive than the low-end ones. This opens a door to foreigners’ establishing and running age care institutions in China. Currently the major resistance lies in the reluctance of some local governments to approve the land using application for age care institutions because of their low return. If support is available in land using, foreign investors will have more enthusiasm to build and run age care institutions in China.
It was hard to find an empty bed in the age care institutions in China in the 1990s. The situation continued to be difficult for decades. The Chinese government’s 12th Five-year Plan attaches great importance to this problem, which is thought to be an obstacle on people’s way of improving their livelihood.
According to Dou Yupei, Minister of Civil Affairs of China, the number of age care institutions will increase by 50% in the next five years. Relevant policies and administration will then be changed. In addition, foreign investors are encouraged to take part in the construction of age care institutions.
Dou Yupei says that the Ministry of Civil Affairs has already made special plan for the development of China’s healthcare system for the elderly. The plan reveals that there will be 30 beds available for 100 people, making the proportion between the number of beds and aged people come out at 30%. “There are total 2.3 million beds now for the aged in China. The number will be doubled if the proportion is improved to 30%. In other words, we have to manage to provide the required amount of beds in five years that we used to provide in the past 60 years.”
It is of course a tough task. Dou Yupei says that the social force is needed in addition to the government’s investment. China has already worked out a series of favorable policies of water and gas supply and taxation for the foreign investors to develop to their age care industry.
Currently quite a few foreign investors have been engaged in establishing age care institutions in China. There is no restriction on establishing age care institutions and the Chinese government has given the public and private age care institutions favorable conditions on taxation, medicine and water and gas supply. But some local administrators worry that foreign investors, given the same favorable conditions, will misuse this opportunity and turn pensions of the Chinese elderly into their profits.
In China, establishing and running an age care institution involves profitable as well as non-profitable goals. On one hand, an age care institution must provide good service for its residents. On the other, aged care institutions, especially the private ones, must have profits from their operations. The low return on investment, the long payback period and the complicated management are the factors that prohibit foreign investors from taking part in establishing age care institutions in China.
The experts think that the economic and social development in China give Chinese people a new understanding about age care. Age care can be divided into different levels, such as general consumption commodities. The high-quality age care services are more expensive than the low-end ones. This opens a door to foreigners’ establishing and running age care institutions in China. Currently the major resistance lies in the reluctance of some local governments to approve the land using application for age care institutions because of their low return. If support is available in land using, foreign investors will have more enthusiasm to build and run age care institutions in China.