"We believe competent enterprises from India will have a role to play in China's health sector," he said. The country has implemented an online tendering system and a unified distribution network to ensure equal opportunities to all suppliers, Chen said.

The statement comes less than two months after Indian commerce minister Anand Sharma raised the issue of market access for pharmaceutical companies during his visit to Beijing last January.

What China is looking for cost-effective medicines of high quality, the minister said. They must be safe and proved effective. He pointed out that the government had set up central drug procurement system, which would make it easy for foreign companies to make their bids.

Chen said the basic health insurance scheme has been expanded and essential drugs covered under it in the case of 30% of grassroots level health institutions. They have centralized provincial level procurement platform to carry out bidding and purchase of essential drugs, he said.