If it stars Gong Li, the movie you're talking about is TO LIVE! (1994), directed by Zhang Yimou.  The plot mainly revolves around the life of an ex-gambling addict, his long-suffering wife and their two children.  The film spans over three decades of Chinese Communist revolution.  The husband becomes a puppeteer near the middle of the film and there is a traumatic hospital sequence near the end.  This movie is available on video, if it is indeed the one you're looking for.  Bye.