China to lift price controls on most medicines from June 1

BEIJING - Starting from June 1, China will lift price controls on most medicines, according to an online notice posted by top economic planner, the National Development and Reform Commission (NDRC). The NDRC said “medicine prices will be decided by the market,” with only narcotics and some listed psychotropic drugs continuing to be controlled by the government “with ceiling retail prices”.

Head of the Medicine Price Research Institute of China Medical University, Chang Feng, said the reform “will turn the Government into a defender of orderly medicine market competition and help keep prices reasonable”.

One added condition included in the notice is that public health departments must boost supervision of medical institutions and check improper medicine and medical equipment use, as well as excessive checkups and treatment.

The move is seen as a major step forward in China’s vows to further relax price controls – the Central Government moved in this area in 2014 in regards to low cost medicines, telecom services, tobacco, ports and railways, air transport, natural gas and electricity. www.webershandwick.cn (ATI).