King & Wood Mallesons

Asia-Pacific 100 position: 2

China’s investigation into drug pricing: what you need to know

By Harry Liu, Chen Dong, Qiu Yue and Li Yi

On 2 July, the National Development and Reform Commission (NDRC) announced an investigation into the prices charged by 60 foreign and domestic drug makers.

Pharmaceutical manufacturers should be aware that the investigation process imposes certain rights and obligations on manufacturers and investigating authorities. The Chinese pharmaceutical pricing regime is primarily governed by the Price Law of the People’s Republic of China, the Pharmaceutical Administration Law of the People’s Republic of China, the Regulations for the Implementation of the Drug Administration Law of the People’s Republic of China and the Code of Conduct for Pharmaceutical Pricing.  

Authorities have the right to fix prices for drugs listed in the directory of drugs for national basic medical insurance and drugs not listed in the directory but monopolistically manufactured and distributed. There are about 2,700 kinds of drugs within these categories, which represent 23 per cent of the drugs on the market…

If you are registered and logged in to the site, click on the link below to read the rest of the King & Wood Mallesons briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Analysis from The Lawyer

View more analysis from The Lawyer


Level 61, Governor Phillip Tower
1 Farrer Place
NSW 2000

Jurisdiction: PRC/Australia
No. of offices: 19
No. of qualified lawyers: 1,634