China’s Centralized Drug Procurement Slashes Spending, Pushing Foreign Drugs out of the Market

China’s Centralized Drug Procurement Slashes Spending, Pushing Foreign Drugs out of the Market
Chinese medical personnel prepare medication at a hospital in Hefei, Anhui Province on Nov. 25, 2009. STR/AFP/Getty Images
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Under China’s centralized drug procurement policy, domestically produced generic drugs are squeezing foreign-made drugs out of the Chinese public health care market with their lower prices.

The Chinese Communist Party’s (CCP) centralized purchasing and marketing policy is seen as forcing drug companies to trade price for sales, while patients say that they are not benefiting from it.