The Reform of China’s Pharmaceutical Market

Chinese Premier Li Keqiang recently announced that China will cancel most of the drug price controls, so that the price will be determined by the market given – even though a specific timetable has not been determined. China may also make profit-margin regulations, and the price cap to ensure that the medicines available and affordable. This policy change is because China is working to strengthen the supervision and control of the pharmaceutical sector in order to improve the quality of drugs, increase transparency, and promote the development of domestic pharmaceutical companies. In addition, the government may soon allow the drug can be sold through online pharmacies. Drug consumption accounts for about 45% of China’s health spending in 2014.

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