Chinese authorities have rejected a plan by Formosa Group (
Chang Gung Memorial Hospital (長庚醫院), a subsidiary of Formosa, had planned to build a medical center in Beijing and another two in Xiamen and Fuzhou, in Fujian Province, with a total investment of NT$15 billion (US$440.4 million).
According to Formosa's plan, the medical center in Beijing would have been the biggest, with between 3,000 and 5,000 beds. Once completed, it would not only be the largest hospital in China, but also one of the biggest hospitals in the Asia region.
Chinese authorities blocked the projects on the grounds the law does not allow 100-percent foreign ownership of hospitals.
But reports said that the key factor behind the rejection was the fear that Chang Gung, with its deep financial and medical resources, could win a big slice of the Chinese market.
Reports also said officials in Beijing did not want to take responsibility for approving the projects shortly ahead of the Communist Party's 16th National Congress, which is set to elect new leadership later this year.
Formosa's chairman, Wang Yung-ching (
Chang Gung's chief coordinator for the projects, Chuang Yi-chou (莊逸洲), yesterday declined to comment on the report, saying that he has yet to receive any notification from Beijing.
China's decision to turn down Formosa's hospital plan is seen as a big political blow for Wang, who has been one of the biggest advocates of direct links among Taiwanese tycoons.
Commenting on the report, Chin Heng-wei (
"China has its own medical environment and when gains and losses are involved, the profit of the `other,' or the `outsider,' will definitely be the first to be sacrificed," he said.
Chin says it will be also the same for other Taiwanese businessmen, who are also considered "outsiders" in China.
"China welcomed Taiwanese businessmen before its own business and trade took shape. Once China has gained power in its trade, the situation of Taiwanese businessmen in China can be expected to become increasingly difficult," Chin said.
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