We introduce the world's first clinical terminology for the Chinese healthcare community, namely MedCT, accompanied by a clinical foundation model MedBERT and an entity linking model MedLink. The MedCT system enables standardized and programmable representation of Chinese clinical data, successively stimulating the development of new medicines, treatment pathways, and better patient outcomes for the populous Chinese community. Moreover, the MedCT knowledge graph provides a principled mechanism to minimize the hallucination problem of large language models (LLMs), therefore achieving significant levels of accuracy and safety in LLM-based clinical applications. By leveraging the LLMs' emergent capabilities of generativeness and expressiveness, we were able to rapidly built a production-quality terminology system and deployed to real-world clinical field within three months, while classical terminologies like SNOMED CT have gone through more than twenty years development. Our experiments show that the MedCT system achieves state-of-the-art (SOTA) performance in semantic matching and entity linking tasks, not only for Chinese but also for English. We also conducted a longitudinal field experiment by applying MedCT and LLMs in a representative spectrum of clinical tasks, including electronic health record (EHR) auto-generation and medical document search for diagnostic decision making. Our study shows a multitude of values of MedCT for clinical workflows and patient outcomes, especially in the new genre of clinical LLM applications. We present our approach in sufficient engineering detail, such that implementing a clinical terminology for other non-English societies should be readily reproducible. We openly release our terminology, models and algorithms, along with real-world clinical datasets for the development.