Beijing: In a major reform in its mostly state-controlled health sector, China Tuesday announced that it will lift price controls on most medicines from next month in a bid to keep drug prices in check by adopting market-driven pricing system.
National Development and Reform Commission (NDRC), the country's most powerful regulating agency, said that medicine prices will be decided by the market from June 1, abandoning the decades-long practice of price controls.
Only narcotics and some listed psychotropic drugs will continue to be controlled by the government, with ceiling retail prices, it said in a statement, state-run Xinhua news agency reported.
The reform will turn the government into a defender of orderly medicine market competition and help keep prices reasonable, Chang Feng, head of the medicine price research institute of China Medical University said.
Chinese consumers have long complained of high drug costs.
The regulators would establish a price monitoring system and focus on detecting and punishing unlawful behaviours.
Public health departments must boost supervision on medical institutions and check improper medicine and medical equipment use, as well as excessive checkups and treatment, the statement said.
China has vowed to ease government controls in favor of market competition in as many areas as possible to improve efficiency.
The central government relaxed its grip on low cost medicines, telecom services, tobacco, ports and railways, air transport, natural gas and electricity last year.
