Policy Analysis On China’s FDI Utilization In Medical Service Field

Since the Reform&Opening Policy in1978, Foreign Direct Investment (FDI) hasbecome an important driving force in promoting China’s economic development, thedomestic state-owned, private, FDI has formed tripartite confrontation pattern in China.In academic circles, the usage of FDI in economic field becomes more mature, whichhas been generally recognized by scholars. While in social medical service field, themedical service is characterized by both public and commercial, on one hand, theory onFDI utilization in medical service field is of great scanty at home and abroad; On theother hand, in practice the domestic&foreign authorities generally take a conservativeattitude towards the FDI utilization in medical service field, the level of introducing FDIis quite low. Regarding the medical service market, from macro perspective, afterjoining WTO, China promised to open medical service field, more and more foreigninvestors poured into China’s medical service market, a standardized operatingenvironment is of high necessity. From micro perspective, due to China’s long-termmonopoly pattern of medical service system,"difficult to see doctor","expensive to seedoctor" turn to be a stringent issue, through the introduction of FDI to form an effectivecompetition mechanism in medical service market is extremely urgent. Based on theneed of theory&practice,as well as domestic macroµ environmentrequirements, the paper is taking policy analysis as a starting point, concluding the viewthat China’s current FDI utilization policy in medical service field is too conservative,Suggesting that the government should take economic field as an example, using FDI ina bolder way, meanwhile taking the characteristics of medical service field into account,not only conducive to fair competition, but also implementing asymmetric regulation.To demonstrate the core idea, the paper reviews and comments on the existingresearch, figuring out that theoretical research on the FDI utilization in medical servicefield is comparatively blank both in domestic&abroad. The direct reason is the effectof FDI utilization in medical service field in practice is not so obvious and satisfactory;the indirect cause is the vacancy and dislocation of government policy, while the mostfundamental reason is the path dependence of the public towards investors of medicalservice. That is to say, there are certain misunderstandings in varying degrees on othermedical subjects except public hospitals.Then the paper explores the FDI utilization inmedical service field theoretically, starting from the double attributes of medical serviceand FDI utilization theory, On the one hand, analyses the essence, characteristics and classification of medical service, focusing on commercial and public traits, drawing aconclusion that the government should carry out the classification management inmedical service field; On the other hand, defines FDI utilization and analyzes thenecessities and feasibilities of FDI utilization in medical service field,compared withthe FDI utilization in economic field，focusing on three points by“should”、can“”、“how” the social medical service field use FDI,so as to establish the theoretical fulcrumfor the whole paper..Based on the theoretical fulcrum, this paper first reviews the policy of utilizingFDI in China’s economic and social medical service field, emphatically from twoaspects of policy&practice development in medical service field.Followed by theanalysis on the defects of current policy for FDI in medical service field, on one handanalyze the current policy for FDI in medical service field internally; on the other hand,states a vertical analysis compared with the economic field, concludes that the currentpolicy for FDI in medical service field is conservative. Then through two casestudies——Jiangxi BO-AI Ophthalmological Center&Jiangxi Zhonghuan(International) Hospital，an empirical comparison with public hospital from horizontalangle, proving the conservation of the current policy for FDI in medical service field.Inthe sixth chapter, from the normative perspective, giving advice to reform and improvepolicy for FDI in medical service field from the perspective of government, foreignhospitals, public hospitals, this chapter concentrates on "asymmetric regulation onforeign hospitals” by government,to facilitate an effective competition mechanism inmedical service market, which helps to solve the“difficult to see doctor”,“expensive tosee doctor”problem.Finally comes with the summary and outlook, pointing out that the development ofFDI utilization theory in social field is the direction of future research. Overall, thispaper compares the FDI utilization between medical service field and economic field bytheoretical analysis, together with the empirical analysis between foreign hospitals andpublic hospitals, illustrating the conservation of the current FDI utilization policy inmedical service field. In the end putting forward to suggestions, in order to improveChina’s FDI utilization level in medical service field, breaking the monopoly, solve"difficult to see doctor","expensive to see doctor" problem.