CHINA LEX PHARMA LAW NEWSLETTER
Vol. 2 , No. 5- February 09, 2001
TOPICS THIS ISSUE:
- EU, China Deal Eliminates Differential Treatment of Member Countries
- Increased Supervision of Medical Information Sites Expected
- New Law on Drug Management Concerns Eight Hot Issues
- Beijing Pharma and Health Reform Initiated
- Westerners are Focus of Chinese Graft Probe
EU, China Deal Eliminates Differential Treatment of Member Countries
A deal between the European Union and the Chinese Government will grant protection to pharmaceutical and agrochemical producers from post-1993 EU members.
Producers from Sweden, Finland and Austria will be able to market their products in China under the exclusivity accorded to the EU's initial 12 members. The three countries joined the EU in 1995, but were denied the same treatment by China on the grounds that they were not members when China granted the administrative rights.
The dispute over rights for the countries began in 1994, and the European industry has estimated losses from lack of marketing exclusivity at approximately EUR25 million.
EU Member countries' producers will now be given the same treatment in China, regardless of their nationality.
(Source: AFP)
Increased Supervision of Medical Information Sites Expected
In a move to further tighten its control over the medical information and sales over the Internet, China is closing down its online clinics.
Of major concern to the Chinese authorities is the perceived misinformation being spread online, particularly in the areas of online diagnoses and the rights of patients and doctors. The government has deemed most online medical information false and inaccurate. Controlling site content has proved difficult for the authorities, however, as it has for governments around the world.
Sites offering advice on matters ranging from sexually transmitted diseases and pharmaceutical products have been difficult to monitor, although in the last year the government has attempted to limit and supervise the flow of information through restriction of the online sale of over-the-counter drugs and diagnoses of diseases.
Regulations issued by the Ministry of Health will attempt to increase the supervision of online medical sites, and to limit content to the areas of body-building and disease prevention. In addition, licensed hospitals will be permitted to provide long-distance consultations for certain diseases, and authorized websites have been conducting online sales of over-the-counter medical products.
(Source: AFP)
New Law on Drug Management Concerns Eight Hot Issues
The revised Law on Drug Management, currently under discussion, will reportedly include 40 new articles to the existing version; 90% of the current articles have already been amended while only 4 articles remain unchanged.
The following eight issues will be considered when the revisions are being finalized:
(i) Prices of drugs should be reasonable based on average cost, market supply and demand, and consumer's financial status;
(ii) Quality of drugs is a priority, and counterfeiters and low quality drug manufacturers should be punished severely;
(iii) Special permits will be required for drug sales companies;
(iv) Pharmaceutical advertisements should abide by current restrictions, but prescription drugs are banned from major media advertisements;
(v) Drug producers, drug sales companies and medical institutions are prohibited from offering or accepting commissions or other benefits;
(vi) Pharmaceutical industry regulators will be liable if they abuse their power;
(vii) Statutory requirements are set forth for drug labels and instructions; and
(viii) Harsh punishment will be imposed on violators.
The Standing Committee of the National People's Congress is reviewing the draft of the new law, but the timetable for passage of the revised law is uncertain at this time.
(Source: Legal Daily)
Beijing Pharma and Health Reform Initiated
The Beijing pharmaceutical and health care system will be reformed in 2001, as indicated in a health meeting recently held in Beijing.
Specifically, six areas in the medical system have been proposed for reform:
(i) Establish new categories for medical institutions, i.e., medical institutions will be divided into profit and non-profit based on their different operational and service targets;
(ii) Restrain the rate of growth of medical expenses;
(iii) Reform the medical service network in districts and towns, and develop the overall quality of medical services in communities;
(iv) Make public medical institutions more competitive;
(v) Regulate the scope and mode of medical subsidies; and
(vi) Allocate medical resources based on district medical planning and geographic jurisdiction.
(Source: Health News )
Westerners are Focus of Chinese Graft Probe
In a recent inquiry into China's electricity monopoly, the Chinese authorities have investigated senior government officials and examined the involvement of foreign companies in possible corruption.
Two senior officials at the electric monopoly, State Power Corp., Tan Aixing and Zha Keming, were under investigation for allegedly accepting bribes from Western companies or their Chinese partners.
In a report on the power industry, Clearthinking, a Western research and consulting firm based in Beijing, alleged that a Western company had paid Mr. Tan a portion of US $368,000 payoff to win a contract.
Chinese authorities had previously avoided implicating Western companies, even though Western executives routinely acknowledge doling out substantial payments-gifts, scholarships, access to foreign real estate-to Chinese officials.
(Source: International Herald Tribune)
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