False and high medicine price is a very complicated problem.

Starting with the problem about the pharmaceutical market,we analysis the control of the government of the pharmaceutical price.

This article discusses drug price regulation impact on social welfare using production function and the tradeoff between static and dynamic efficiency,in order to give suggestion for China’s pharmaceutical price policy from theoretical aspect.

The role of government intervention and market competition in the reduction of drug price;

Study on the Government Regulation System of Drug Price;

RESULTS & CONCLUSIONS:Drug price policy of China is the one of key factor for the current medical market disorder, the formulation of which should be based on national condition and under governmental control.

In recent years,the country has adopted a series of policy that reduce drugs price.

The drugs price expensive, the drugs expense burden is heavy has become the serious social question which the influence harmonious society constructs.

Recent years, with the rising drug prices, a false high price for drugs has been one of the biggest issues Chinese people care about.

Objective To provide the price hierarchies of hospital drugs and related data and to provide the theoretical guide for central buying and macro-controlling on drug prices for state medicine administration departments.

China\'s drug prices should be regulated from the functions of the National Development and Reform Commission\'s price monitoring agency to transfer the State Food and Drug Administration.