The State Council of the People's Republic of China, through Circular No. 9/2026, has introduced significant reforms to China’s pharmaceutical pricing framework, reinforcing the coordination between market-based competition and state regulatory guidance.
The reform distinguishes pricing mechanisms for innovative drugs, improved medicines, and generic products, providing greater pricing flexibility for high-value innovation while further promoting benchmark-based competition among generics. Key policy measures include strengthened medical insurance negotiations, expanded centralised procurement mechanisms, and closer alignment between reimbursement standards and demonstrated clinical value.