China says it will institute the country's first basic medicine system within the year to drive down prescription costs and contain the excessive use of medicine.

Tang Jingbo is a senior official with the health ministry.

"First we need to first conduct surveys to decide what are the most common diseases and epidemics in the country and then the common treatments for those diseases. Medicines used in these treatments will be included in the list of basic medicines. "

Xu Jiaqi from the State Food and Drug Administration explains the goal behind establishing such a system.

"It aims to ensure drug supplies to prevent and cure the most common diseases."

Health departments plans to subsidize the producers struggling to produce basic drugs.

Authorities have also urged the country's pharmaceutical industry to simplifying the distribution process to bring down drug costs.