Health is closely related to the well-being of individuals and families. Improving the level of health in a society is an important indicator of that society’s level of advancement. Good health is also a vital wellspring of a nation’s human capital. Investing in health in order to improve the quality and fitness of the entire population should be an essential part of China’s social development goals. This chapter explores specific actions that investments in health might entail. It addresses the relationship between health and human development. It introduces the country’s achievements to date in healthcare system reform, as well as looking at the challenges now being faced by the population. It describes principles to be following in reforming China’s healthcare system.