II. Qualifications of Setup:
（I）The setup and development shall conform to the local regional health planning and the plan on the setup of medical institutions, and the Basic Standards for Medical Institutions stipulated by the Ministry of Health shall be implemented.

 (II) Both Chinese party and foreign party applying for the establishment of China-foreign joint venture or cooperative medical institutions shall be entities who can bear civil liabilities independently. Both parties shall possess experience of engaging in medical health investment and management directly and indirectly, and meet one of the following requirements:

1. Be able to provide advanced international management experience, management models and service models of the medical institutions;

2. Be able to provide internationally advanced medical technologies and equipment;

3. Be able to complement or improve inadequacies of the local medical institutions in service capability, medical technologies, capital and medical facilities, etc.

（III）The following requirements shall be met:

1. Be the independent legal person;

2. A total investment of no less than 20 million Yuan;

3. The Chinese and foreign parties to the joint venture or cooperative medical institutions shall account for no less than 30% of shares or equities of the Sino-foreign joint venture or cooperative medical institutions;

4. The duration for the joint venture or cooperative medical institutions shall not exceed 20 years;

5. Other conditions stipulated by the health administrative department (The public health administrative license related to the interest relations of the third party, if the public announcement is required, shall be performed according to the regulation.)

（IV）The Chinese party to the joint venture or cooperative medical institutions makes the investment with state-owned assets (including the investment with assets evaluation or the cooperative conditions), which shall be approved by the relevant competent department. The state-owned assets to be invested shall be evaluated by the evaluation institution approved by the state-owned assets management authority in accordance with relevant rules on the evaluation and management of state assets.The evaluation result accepted by the state-owned assets management authority above the provincial level can be used as pricing reference of state-owned assets to be invested.