A spokesperson of the Ministry of Health (MOH) said Friday that as of Jan 1, 2011, the Chinese mainland will allow medical service suppliers from Hong Kong, Macao and Taiwan to invest and operate wholly-owned hospitals in certain provinces and municipalities.

Deng Haihua, the MOH spokesperson said at a press conference that Hong Kong, Macao and Taiwan suppliers enjoy priority in operating medical services on the Chinese mainland amid government's efforts to further open the medical service market.

Foreign medical service suppliers are still not allowed to operate wholly-owned hospitals on the Chinese mainland and the policy remains unchanged, Deng said.

HK and Macao medical service suppliers would be allowed to set up wholly-owned hospitals in municipalities and provinces, such as Shanghai, Chongqing, Guangdong, Fujian and Hainan as of Jan 1, 2011, according to the supplement VII to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) and the supplement VII to the Mainland and Macao CEPA.

According to the same documents, Hong Kong and Macao service suppliers will be allowed to set up convalescent hospitals in the form of wholly-owned or joint venture to provide medical services in Guangdong Province from the beginning of next year, said Deng.

Taiwan medical suppliers will be allowed to open wholly-owned hospitals in municipalities and provinces, such as Shanghai, Jiangsu, Guangdong, Fujian and Hainan from Jan. 1, 2011, according to the Economic Cooperation Framework Agreement (ECFA) between Chinese mainland and Taiwan, he said.