The guidelines, issued as part of a circular by the General Office of the State Council, were developed jointly by six departments: the Economic Restructuring Office of the State Council, the State Development Planning Commission, the State Economic and Trade Commission, the Ministry of Health and the State Drug Administration.

The guidelines emphasize the State's crack down on illegal activities involving the manufacturing and marketing of counterfeit and shoddy drugs. Those found to have committed criminal offenses should be punished promptly, the circular said.

According to the guidelines, kickbacks and bribery related to the purchase and sale of medicines will be investigated and handled in accordance with laws.

They also demand that drug administrations across the country cut all connections with pharmaceutical factories. Indeed, they require administrations to cease all economic relations with any company engaged in sales of drugs.

The circular encouraged medicine manufacturers to enlarge their scales of operation through acquisition and mergers. Small drug firms, which cause serious pollution and waste natural resources, will be closed down, it said.

The circular also called for improvement of medicine-supply networks in the country's vast rural areas.

Large-scale drug wholesalers are encouraged to establishing sales channels in the countryside, it said.

The government will strengthen its supervision of drug prices and advertisements. Only over-the-counter drug advertisements will be permitted on the mass media level, while ads for prescribed medicines will be gradually phased out entirely.

The promulgation of the guidelines is only one of a series of measures authorities are taking to fight illegal practices in China's drug market, which have been the subject of numerous public complaints in recent years.

(China Daily 03/27/2001)