The Bloomberg piece you posted is unduly alarmist, IMO. Many countries hold government tenders to procure drugs at the federal or provincial level, so this is hardly a radical plan.
I have been telling people for a while that it is my belief that the chinese companies were all making a lot of money, even the generic manufacturers and then they did the reverse mergers.
so the companies went public at two and three times earnings.
The first thing the companies all did when they raised the money on the IPO was build new manufacturing.
In essense the chinese govenment allowed the companies to charge higher prices for a couple of years so that they could get an IPO done drawing investment from the US and Europe.
Now that the money is raised the companies will now lower their prices and either make very small profits or lose money. US and European investors sell their stock but the chines govenment doesn't care because they have brand new manufacturing facilities producing drugs for the next thirty years that they didn't pay for.