Hangzhou cracks down on price gouging of TCM COVID medication

The market watchdog in eastern China's Hangzhou has warned it will crack down on pharmacies that overprice or hoard a traditional Chinese medicinal (TCM) drug that is recommended by Chinese authorities to relieve COVID-19 symptoms.

Lianhua Qingwen capsules are experiencing a sharp price increase, up to a twofold rise in some pharmacies and even an outrageous 240 percent jump at some online drug stores on JD.com, one of China's largest online marketplaces, reported Chengdu Economic Daily on Tuesday.

Lianhua Qingwen is a medicine recommended by Chinese health authorities to deal with moderate COVID symptoms. It is believed its herbal ingredients have the potential to reduce "heat" inside the body and streamline excretion.

The Hangzhou Municipal Administration for Market Regulation said on Monday that vendors must not raise the price of drugs and medical supplies significantly and will punish violators according to China's Price Law and other related laws and regulations.

Sellers are not allowed to hoard the medication, seek huge profits or spread rumors about price hikes, the watchdog said.