Cancer Drugs Tax Lift: Officials vow to improve access to health care

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China's pharmaceutical industry is expected to become even more robust as the tariffs are cut. CGTN's Ren Xueqian looks at how these new measures will give people more value for their health-insurance, whilst also encouraging companies to invest more in research and development.

According to the International Data Center, more than 95 percent of China's 1.4 billion population have access to some form of health insurance. Yet, despite this, many are unhappy with the quality of the products and services their premiums are paying for.

CHEN FENG CHIEF ONCOLOGIST, BEIJING SHIJITAN HOSPITAL "There are still a lot of new drugs that have not entered the Chinese market nor included in health coverage. Take the PD-1 anti-body, a type of anti-tumor drug, for example: the US began providing it in 2014 and we still don't have it in China but many patients need it, so they'll try to get it by any means necessary."

So the government decided to make these specialised drugs more accessible. Starting from May 1st, it will eliminate import tariffs on 28 common drugs, including those considered essential in the treatment of breast cancer and leukemia. Dr. Chen said such measures will help to relieve the financial burden on cancer patients, and also guarantee a reliable supply of such drugs...

REN XUEQIAN BEIJING "In addition to increasing access of anti-cancer drugs for consumers, the government is also hoping the tax cut will promote the development of new drugs in China's pharmaceutical industry, and improve the distribution of products through the standardization of prices."

So with more imported drugs available in China, and the government promising to expedite the approval and commercialization of innovative medicines, some local pharmaceutical companies believe it's now secure to invest in the research and development of domestic drugs.

DR. CHEN YONGQING CHAIRMAN, GX PHARMA "Data from innovative chemical drugs in China can now get up to six years' intellectual property protection. The clinical trial approval system is now more efficient as well. These measures, together with the new tax reductions, will encourage more Chinese pharmaceutical companies to invest in new drugs because their rights are protected."

The government says it's looking to implement measures to keep drug costs down and to ensure a reliable supply. And with cancer the leading cause of death in China, health authorities say they are also looking to add more anti-cancer drugs to the current insurance system.

YU JINGJIN DIRECTOR, DISEASE CONTROL DEPARTMENT NATIONAL HEALTH & FAMILY PLANNING COMMISSION "Since 2016, among the drugs covered by health insurance, 39 have seen their average price decline by over 40 percent. 17 of those are anti-cancer drugs. As of April, lower prices for these anti-cancer drugs covered by health insurance have saved patients by as much as 4.1 billion yuan."

Data from the International Trade Administration suggests that, on average, each Chinese person spent approximately 78 US dollars on drugs treatments in 2016 -- that was about a sixth of all health-care expenditure that year.

With China looking to further boost its pharmaceutical industry, the ITA says it could be worth more than 167 billion dollars by 2020.