BEIJING, Nov. 24, 2009 (Xinhua News Agency) -- China will strengthen its control over pharmaceutical prices in order to address the lack of the health resources and high costs.

China's National Development and Reform Commission, Ministry of Health, and the Ministry of Human Resources and Social Security jointly issued on Monday "Views on the Reform of Medicine and Medical Services Price Formation Mechanism," which stressed the need to control the rate of pharmaceutical distribution via price controls and specifically engineer a price ceiling.

The newly issued views proposed both short- and long-term goals for the reform of pharmaceutical prices.

According to the views, China's pharmaceutical price regulation and the market prices would be improved in 2011 via reforms and the strengthening of management. Prices would become more reasonable and the structural contradictions in medical service prices would be gradually eliminated.

In 2020, China should establish a scientific and rational price formation mechanism and a sound pharmaceutical price management system. At that time, the pharmaceutical price can reflect the market supply and demand and the change in production and service cost.

The views were one of the 21 supporting files for the new medical reform program. Analysts believe that signals the Chinese government has begun to strictly control drug prices.