China has been pushing the market-oriented reform of its medical and healthcare system by gradually and properly inviting private and foreign investors to participate in the reform process. Meanwhile, attracted by the sheer size and the bright prospect of China's medical and healthcare market, more and more foreign investors have also started to actively seek China investment opportunities in this area. However, due to China's relatively conservative attitude towards foreign investment in the medical and healthcare industry and the various historical issues accumulated in the development and reform process of China’s medical and healthcare system, foreign investors interested in this area often have to face some challenging and difficult situations. Based on applicable PRC laws and regulations, latest PRC practice and our past experience, our lawyers have briefly summarized and analyzed in this memorandum several major legal issues concerning foreign investments in private PRC hospitals. We hope this will be a helpful reference to interested foreign investors. (Full text in Chinese only)