China's 2022 Two Sessions: Goals and Proposals for Pharma & Healthcare Industry

by Grace Wang Mar 15, 2022

China's two sessions refer to the annual plenary sessions of the National People's Congress (NPC), the top authority, and the Chinese People's Political Consultative Conference (CPPCC), the top legislative advisory body in China.

This year, the fifth session of the 13th NPC took place from March 5 to 11. The government work report released during the session sets out tasks for 2022. One of the major tasks is to improve medical and health services.

There are several highlights in the task:

  • emphasizing innovation,

  • therapeutic areas of cardiovascular/cerebrovascular diseases, cancer and rare diseases,

  • volume-based procurement, and

  • medical insurance.

To complete the task, China will take measures1 which are listed below:

  • Incentives for innovation: China will raise the tax deduction rate from 75% to 100% for R&D expenses of small and medium sci-tech enterprises. The government will also grant tax breaks to enterprises that invest in basic research and improve policies on preferential corporate income tax for new-and-high-tech enterprises.

  • China will strengthen the supervision of the safety and quality of drugs and vaccines.

  • China will increase the government subsidies for basic medical insurance by 30 yuan on average per person. The government will also reform the medical insurance payment system and improve the policy on directly settling medical expenses at where they're incurred (outside of a patient's home province).

  • China will enhance the services for preventing and treating illnesses, including cardiovascular/cerebrovascular diseases and cancer, and ensure the supply of medicines for rare diseases.

  • China will push forward the volume-based procurement (VBP) for more medicines and high-value medical consumables, and ensure the production and supply of these products.

  • China will deepen the reform of public hospitals, support the medical institutions affected by COVID-19, and improve services such as maternal and child healthcare, pediatrics, mental health, and medical care for the elderly.

  • China will support the revitalization and development of traditional Chinese medicines.

Apart from the official measures, representatives made proposals on the pharmaceutical industry. On the fifth session of the 13th CPPCC, which lasted from March 4 to 10, CPPCC representative Du Liqun proposed that more medical support should be provided to rare disease patients.2 The proposal will be deliberated and may be written in the law in the future.

BaiPharm recommends pharmaceutical companies pay particular attention to these measures so that their businesses in China may benefit from the relevant preferential policies. Contact BaiPharm for the latest pharmaceutical news, in-depth analysis, and professional consultancy services.

Grace Wang
ChemLinked Regulatory Analyst
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