Zhao Bei, a market analyst at the Industrial and Commercial Bank of China, said that the sector of innovative drugs accounts for 70 percent of the US pharmaceutical market, worth about $700 billion. In Japan, the proportion is about 57 percent. In China, the proportion of innovative drugs takes up 10 percent of a pharmaceutical market worth 2.45 trillion yuan.

She disapproved of the perception that innovative drugs are priced at too low a level in China, and that the size and state of the Chinese market cannot bolster the development of innovative drugmakers.

"In the future, China's innovative drug market will be a market with a bright prospect for strong and fast growth. It is expected to soon become the world's second-largest market and can maintain a relatively fast growth rate in the long term," Zhao said.

During its annual meeting held on Dec 18 which lays out key missions this year, the administration said that more novel and high-quality drugs will be added to the national drug reimbursement list.

It added that it will continue to carry out regular centralized and local drug procurement programs that usually involve generic, less costly drugs.

It added that the foremost task is to safeguard the safety of insurance funds, guarantee a balance between revenue and expenditure with a small surplus, as well as stave off deficits.

The administration has also attached great significance to leveraging the role of private capital in the healthcare insurance sector. Private insurance was mentioned seven times in a readout of the meeting, compared to none at last year's gathering.

To satisfy the diversified insurance demands of the public, the administration said it will support the development of both commercial health insurance and basic medical insurance, each with distinct development models.

With the prerequisite of insurance security, the administration will also explore the simultaneous settlement of private insurance, charitable assistance and basic medical insurance, it said.

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