In 2020，volume-based procurement is fully implemented，provincial key supervision systems are introduced，and DRG pilots in 30 cities are launched. The structure of China’s pharmaceutical industry will be overturned and reconstructed，and a large number of drugs that are not rational choices for therapy will be eliminated. The rational drug use will be further strengthened，the antibiotic restriction will continue，the brand name drugs will be quickly replaced after their patents expire，the overall drug price will be reduced dramatically，the status of basic drugs will be improved，the volume-based procurement will be normalized，the scope of national health insurance negotiations and the basic drug list will be expanded，the use of new drugs with accurate efficacy and able to meet unmet clinical needs will be increased，and the growth model of China’s pharmaceutical industry will change from PR and sales-driven to cost and technology-driven，from made in China to created by China. The pattern of “small，scattered and chaotic” will be eliminated，the pattern of pharmaceutical production and circulation with large backbone enterprises as the main body and supplemented by small and medium-sized enterprises will soon be established，and the international competitiveness of China’s pharmaceutical companies will be greatly improved.