China Urged to Adopt Coherent Pharmaceuticals Policy

International pharmaceuticals firms are calling on China's government to adopt a clear drugs and healthcare policy. At present, the sector is regulated by nine departments of the country's State Council, which critics say is leading to a failure to coordinate policy effectively.

China has established an essential drugs list including 759 "Western" drugs and 1,242 traditional Chinese medicines, although this list is not enforced and has no accompanying legislation. The list also reportedly contains no subsidies for life-saving but expensive therapies to treat less common diseases.

With only 2,960 of the 14,000 drugs approved for marketing in China covered by health insurance, much remains to be done to expand provision. Roughly 80% of China's rural population is uninsured, while this level is 40% in the cities. Adding to the confusion, the social security department's list of reimbursable medicines differs from the basic drugs list, often leading to inappropriate prescribing by doctors.