China Unveils Major Policy Package: Drug List, Carbon Plan, Flood Prevention, and More

BEIJING — On July 10, 2026, Chinese authorities announced a sweeping set of domestic policy measures spanning healthcare, climate action, disaster prevention, digital regulation, public security, and anti-corruption enforcement. The coordinated announcements, published through state media outlets including People’s Daily, Xinhua News, and The Paper, reflect Beijing’s multi-pronged governance approach during the summer of 2026.

Healthcare: Expanded Drug List Includes Innovative Medicines

The National Health Commission released the 2026 edition of China’s National Essential Drug List, expanding coverage to 794 drugs — an increase of 109 from the 2018 edition. For the first time, the list incorporates innovative drugs into its selection and adjustment scope, marking a significant policy shift.

Gong Xiangguang, Director of the Drug Policy Department at the National Health Commission, announced that four domestically produced Class I innovative drugs were added: three chemical and biological drugs and one traditional Chinese medicine. The new list, effective September 1, 2026, includes 476 chemical drugs and biological products alongside 318 traditional Chinese medicines.

The commission plans to shorten the time from innovative drug approval to inclusion in the essential drug list through regular dynamic adjustments, signaling stronger government support for China’s domestic biopharmaceutical industry.

Climate: 15th Five-Year Carbon Peak Action Plan Released

The State Council issued Document Guofa [2026] No. 22 — the 15th Five-Year Carbon Peak Action Plan, setting ambitious targets for China’s green transition. By 2030, the plan aims for a 17% reduction in CO2 emissions per unit of GDP compared to 2025 levels, with non-fossil energy consumption reaching 25%.

Wang Peng, Executive Dean of the National Energy Development Strategy Institute at North China Electric Power University, highlighted three key innovations: green electricity direct supply models, virtual power plants with quantified targets, and integrated wind-solar-hydrogen-ammonia-alcohol bases.

Sun Chuanwang, Professor at Xiamen University’s China Energy Economics Research Center, noted that the plan sends a clear signal of “using green to control green,” expanding low-carbon transformation from traditional high-energy-consuming industries toward zero-carbon parks, green computing, carbon management services, and the circular economy.

Disaster Prevention: Central Directive on Flood and Drought Response

The CPC Central Committee General Office and the State Council General Office jointly issued a notice on flood and drought prevention, urging all-out efforts to protect lives and property amid extreme weather events. The directive comes as Typhoon Bawang approaches China’s coastal areas and the 2026 main flood season brings above-normal extreme weather.

Key measures include improving monitoring and early warning accuracy for mountain flash floods and nighttime heavy rainfall, implementing “point-by-point” evacuation plans for high-risk areas, and establishing a 24-hour duty system during flood season. The directive also emphasizes protecting major infrastructure including the South-to-North Water Diversion and West-to-East Gas Pipeline projects.

Public Security: Summer Anti-Fraud Campaign Targets Students

The Ministry of Public Security issued summer safety tips against telecom and online fraud, specifically targeting three student groups. Primary and secondary students are warned about game-related fraud schemes, college students about click-farming rebate scams and fake shopping fraud, and overseas students about impersonation of law enforcement officials. Graduating students were also cautioned against “high-return” and “zero-threshold” job offers during recruitment season.

Digital Regulation: Crackdown on Mislabeled Short Video Content

The Cyberspace Administration of China (CAC) announced enforcement results from its campaign to standardize short video content labeling. Since May 2026, authorities have removed over 241,000 non-compliant short videos, penalized more than 21,000 accounts, and issued 1.275 million corrections or re-labeling actions, as reported by Xinhua.

Penalized content categories included staged “disabled wife pregnant again” dramas exploiting public sympathy, fake delivery worker single-father narratives, fabricated family conflicts, and staged heroic acts.

Anti-Corruption: Henan Farmland Project Investigation

In a significant anti-corruption enforcement action, 14 officials in Sheqi County, Henan Province, have been placed under investigation for the alleged illegal subcontracting of a high-standard farmland improvement project worth nearly 100 million yuan ($13.8 million). According to The Paper, the project was split into approximately 100 sub-lots, with subcontractors selected by lottery at the project site office. Two criminal suspects have been subjected to compulsory measures by public security authorities.

Analysis and Implications

These coordinated policy announcements demonstrate the Chinese government’s comprehensive approach to governance, addressing healthcare accessibility, climate commitments, disaster resilience, digital content regulation, public safety, and anti-corruption simultaneously. The inclusion of innovative drugs in the essential drug list and the ambitious carbon peak targets signal Beijing’s commitment to long-term structural reforms, even as it addresses immediate challenges such as extreme weather events and fraud prevention.

What to Watch For

The new Essential Drug List takes effect on September 1, 2026. Implementation of the Carbon Peak Action Plan will unfold through provincial-level action plans and supporting regulations. Meanwhile, the Henan farmland investigation may lead to broader anti-corruption scrutiny of infrastructure projects across the country.