Today, the Nikkei ASIA reports that People’s Republic of China (PRC) will allow wholly foreign-owned hospitals in Beijing, Shanghai, Nanjing, Hainan among major locations.  Really?  The PRC will “allow” foreigners to supply money for critical needs that the PRC will not provide for the “people” in the People’s Republic of China?

Visibly, the PRC seeks to lure investment into the PRC as it seeks to stem the exodus of capital from the PRC.

Ostensibly, because Americans equate ownership with control, investors in wholly foreign-owned hospitals would control the hospitals.

Empirically, the PRC equates control with control and will wield its power over the profitably and operations of foreign invested hospitals.

Responsively, first, US investors should consider investments into the PRC suspiciously.  Second, the US should develop ideas for requiring a holdback of some amount for investments Americans do decide to make in the PRC.  As banks pay insurance premiums to the Federal Deposit Insurance Corporation, so could investment aggregators pay premiums to cover their customers’ investments in PRC assets.