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China will lift price controls on most medicines starting from June 1. That's according to the country's economic planner, the National Development and Reform Commission.

In an online notice to promote medicine price reforms, the commission says medicine prices will be decided by the market.

Only narcotics and some listed psychotropic drugs will continue to be controlled by the government, with ceiling retail prices.

Medicine price researchers at China Medical University say the reform will turn the government into a defender of orderly medicine market competition and help keep prices reasonable.

The notice stipulates that public health departments must boost supervision on medical institutions and check improper medicine and medical equipment use, as well as excessive checkups and treatment.

China has vowed to further relax price controls. Last year, the central government relaxed its grip on low cost medicines, telecom services, tobacco, ports and railways, air transport, natural gas and electricity.