China has strengthened its regulation of excessive prescription practices through a new National Healthcare Security Administration (NHSA) notice issued on November 3, 2025, alongside the nationwide Insurance Fraud “Hundred-Day Campaign.” The measure aims to crack down on fraud, abuse, and improper use of medical insurance funds through high-technology supervision.
The NHSA will roll out “intelligent” monitoring in three phases via the national insurance platform: 50 key drugs in pilot regions by the end of 2025, at least 100 drugs nationwide by the middle of 2026, and full national standardization by the end of 2026. Although the official list is not available yet, regulators are expected to focus on high-cost and high-demand drugs that are often linked to insurance fund misuse.
Advanced analytics and drug traceability will identify abnormal prescribing and purchasing. An enforcement system with different tiers will offer leniency for self-correction, but impose strict penalties for serious violations.
For multinational pharmaceutical companies, the initiative will result in increased regulatory scrutiny, audit risk, and reputational exposure. Drug firms are advised to strengthen compliance controls and closely monitor distribution and prescribing patterns as China expands supervision.
Written by: Ames Gross – President and Founder, Pacific Bridge Medical (PBM)
Mr. Gross founded PBM in 1988 and has helped hundreds of medical companies with regulatory and business development issues in Asia. He is recognized nationally and internationally as a leader in the Asian medical markets. Mr. Gross has a BA degree, Phi Beta Kappa, from the University of Pennsylvania and an MBA from Columbia University.