Establishing Medical Facilities in China: Redleaf Case Study
On 31 August 2017, Redleaf made a sudden announcement that it would be relocating its services to a different location at the request of the government. Since 2012, the State has allowed the military to lease unused land subject to approval. It is speculate that the awkward situation that Redleaf was confronted with may be the result of not following the correct procedure. Investors and operators of medical facilities in China should not neglect the risks and high costs associated with non-compliance in the establishment process. In order to avoid unnecessary loss and to ensure continuous operation, investors should seek legal guidance. It is vital to conduct comprehensive due diligence around land, regulations and operation, to avoid unnecessary risks.