A stuff memeber checks medicines on the shelves in a drug store in Shandong province, May 5, 2015. (Photo/china.org.cn)
(ECNS) -- China will lift price controls on most drugs starting from June 1st and support a market-based pricing system, according to the National Development and Reform Commission (NDRC).
NDRC, China's top economic planner, introduced the policy in cooperation with other agencies, including the National Health and Family Planning Commission and the Ministry of Human Resources and Social Security.
Prices for most drugs will no longer be decided by government. The retail prices for drugs will thus be opened up for market competition as price ceilings cease to exist.
Exceptions remain for narcotics and some psychotropic drugs, whose prices will remain under government control.
The state and market will jointly establish a scientific pricing system, according to a statement from NDRC.
It also urged the strengthened supervision of medical costs and prices to ensure fair competition.
The policy has been introduced as China aims to deepen its economic reforms to ensure that the market will play a "decisive" role in allocating resources.
