Structural transformation ofChina's economy in the 1980s and its impact on thehealth sector created a critical need for skills andresearch capacity in health economics and financing. In 1989the Government of China (GOC) enlisted the World BankInstitute (WBI) to work with China's Ministry of Health(MOH) to organize senior policy seminars addressing emerginghealth issues and to establish a network of institutions totrain academic faculty and government officials. In 1991 GOClaunched the China Health Economics Network, which infourteen years has expanded membership from seven tonineteen institutions, offered health sector courses, andled to the training of more than 2,100 executives andtrainers. Network research and senior policy seminars havesupported critical government policy decisions. Replicationof this successful network model is possible in large countries.