New regulation encourages private investment in elderly care sector

我国鼓励民间资本参与养老服务业发展

Source: 经济日报 February 26, 2015

The Ministry of Civil Affairs published a new law on its website on February 25, 2015, titled “Notice on Opinions upon Encouraging Private Capital to Invest in Elderly Care Industry”(关于鼓励民间资本参与养老服务业发展的实施意见). It was issued by the Ministry of Civil Affairs, together with nine other government departments.

According to the document, the government will encourage private investment in the elderly care service industry to help with its aging population. Non-governmental investors are encouraged to run elderly care facilities, including nursing homes and recreational centers. They can also cooperate with the government to form joint ventures to build and develop facilities for senior citizens.Tax incentives, favorable land-use policies, and other preferential policies for elderly care services were also included in the regulation.

The government will also increase investment in this sector. The new regulation requires that more than 50 percent of welfare funds collected through lottery sales should be channeled to elderly care and no less than 30 percent should be used to support private-owned services. It also requires health authorities to support the establishment and operation of clinics inside elderly care facilities.

 

Translated by CDB staff

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