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China has unveiled a new policy exempting eligible drugs and medical devices from import tariffs and value-added tax (VAT) in the Boao Lecheng International Medical Tourism Pilot Zone in Hainan Province. This measure, effective immediately, marks a pivotal move as the island gears up for its transition to independent customs operations by 2025.
The Boao Lecheng International Medical Tourism Pilot Zone, established to enhance China’s healthcare services and attract global medical investments, will benefit from these new tax exemptions. The policy aims to make advanced medical treatments and cutting-edge medical devices more accessible to both domestic and international patients. By reducing the financial burden associated with high-quality medical products, China seeks to position Hainan as a leading destination for medical tourism and high-end healthcare services.
Under the new regulations, eligible drugs and medical devices imported into the pilot zone will be exempt from both import tariffs and VAT. This measure is expected to lower the cost of medical treatments and encourage investment in the local healthcare sector, thereby fostering innovation and improving the quality of medical services available in the region.
The decision reflects China’s broader strategy to enhance its healthcare infrastructure and improve access to advanced medical technologies. It is part of a series of reforms aimed at modernizing the healthcare system and making it more competitive on the global stage.
The exemptions are also expected to attract multinational pharmaceutical and medical device companies to the region, further boosting its status as a premier medical tourism destination. The policy is anticipated to stimulate economic growth within the zone and contribute to the broader goal of establishing Hainan as a hub for international medical tourism.