Essential medicines in China

Essential medicines are those that satisfy the priority health care needs of the population. They are selected with due regard to disease prevalence and public health relevance, evidence of clinical efficacy and safety, and comparative costs and cost-effectiveness. The increasing need for essential medicines due to the growing burden of diseases is stretching country pharmaceutical systems and budgets. Thus, more resources are required for reliable and timely delivery of quality assured medicines as well as their appropriate utilization.

To address the growing need, governments must ensure efficient use of resources that the system and the people can afford. They should protect the public from substandard and counterfeit medicines, increase access to medicines while containing costs, and ensure efficiency of supply chains and rational use of medicines. Access to safe, effective and quality medicines and vaccines for all is one of the targets of the Sustainable Development Goals and is necessary to achieving Universal Health Coverage (UHC).

In China, the pharmaceutical spending accounted for more than 30% of the total health expenditure in 2018. Drug sector reforms are embedded with the overall health system reforms. In 2019, China amended the Drug Administration Law as part of the country's efforts to strengthen supervision to ensure drug safety. Drug prices have been reduced through price negotiation and volume-price procurement. Health Technology Assessment (HTA) evidence is reviewed by a formal government process to inform decisions about listing drugs in the benefit package.