China's drug producers are now required to print the recommended retail prices on their packaging, which is one of the country's efforts to halt soaring drug and medical service prices.

The new policy was issued Wednesday in a circular by the National Development and Reform Commission, the Ministry of Health and six other government departments.

The circular says the government will readjust the fixed drug prices and tighten its supervision of prices determined by the market.

In an experimental measure, some of the drugs will have their prices fixed by the government at the factory gate.

The government will also seek to readjust the prices for medical services and standardize the services of hospitals.

Major public hospitals will be banned from selling drugs at prices 15 percent higher than their purchase prices.

Soaring drug and medical service prices have become a major social problem in China in recent years. The government has made efforts to improve the situation, but with little success.

(Xinhua News Agency June 1, 2006)