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China’s State Council Approves Plan to Expand and Upgrade Medical Rehabilitation and Nursing Services

The State Council has approved an implementation plan for expanding and improving medical rehabilitation and nursing services, with a focus on grassroots capacity, balanced development, and integrated Chinese-Western medicine. Foreign founders in the healthcare sector should monitor local implementation and regulatory developments.

Overview

On September 28, 2026, China’s State Council issued a formal reply (Guohan No. 99) approving the Implementation Plan for the Project to Expand and Upgrade Medical Rehabilitation and Nursing Services. The plan was submitted by the National Health Commission (NHC) and the National Development and Economic Commission (NDEC). The State Council’s reply outlines the guiding principles and implementation requirements for the plan, which aims to improve the supply and quality of rehabilitation and nursing services across China.

Key Policy Directions

The reply states that implementation must follow Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the 20th Party Congress and subsequent plenary sessions. It emphasizes a health development path with Chinese characteristics, the strategy of prioritizing health in development, and the national strategy to proactively respond to population aging. The plan focuses on four themes: expansion, quality improvement, balanced distribution, and continuity of care. It prioritizes grassroots-level capacity, seeks to increase the supply of medical rehabilitation and nursing resources, and aims to build a service system that is functionally complete, vertically integrated, combines Chinese and Western medicine, and is efficient and accessible. The ultimate goal is to better meet the health needs of the entire population across the full life cycle.

Implementation Requirements

For Provincial Governments

Provincial-level governments (provinces, autonomous regions, and municipalities directly under the Central Government) are required to strengthen organizational leadership, clarify responsibilities, and detail implementation measures to ensure that the plan’s objectives and policies are carried out. Localities are encouraged to leverage their own advantages and to innovate measures tailored to local conditions for expanding and upgrading medical rehabilitation and nursing services.

For Central Government Departments

Relevant State Council departments and units must coordinate according to their responsibilities, strengthen cooperation, provide guidance, and detail specific support measures to form a policy synergy. The NHC and NDEC are tasked with enhancing overall coordination, tracking implementation progress, and summarizing and promoting typical experiences in a timely manner. Major matters must be reported to the Party Central Committee and the State Council through established procedures.

Implications for Foreign Founders

Foreign founders operating or establishing companies in China’s healthcare sector should note that this is a policy framework at the national level. The actual implementation will depend on provincial and local government actions. Key takeaways:

Foreign founders considering entry into China’s rehabilitation and nursing sector should conduct thorough due diligence, engage with local authorities, and track the development of provincial implementation plans. The State Council’s approval is a high-level endorsement; operational details will emerge as ministries and localities roll out specific measures.

Conclusion

The State Council’s reply provides the political and policy green light for the expansion and upgrading of medical rehabilitation and nursing services. While the plan itself is not publicly detailed in the reply, the emphasis on grassroots capacity, balanced development, and integrated care indicates the direction of travel. Foreign founders should view this as a signal of policy support but must await further implementing rules and local adaptations before making significant investments.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

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