The Chinese government is to set prices for all prescription drugs in a bid to stop corruption in the medical services.

The Office for Rectifying Malpractice under the State Council, China's cabinet, announced on Tuesday that the move would help regulate the purchase of medicines and medical services, and improve medical ethics.

An official from the office told a national conference of discipline inspection that profiteering by hospitals and medical organizations should be checked, and education of doctors and nurses should be strengthened to prevent practices such as asking patients for "red envelopes" or "gifts".

He said the government would also standardize the approval procedures for new medicines to prevent producers from changing the names of drugs and re-pricing them to escape price controls.

The government would step up the fight against corruption in drug production and circulation, and against fake medicines and medical instruments, and the illegal advertising of fake drugs, said the official.

Vice Minister of Health Chen Xiaohong said at the conference that all hospitals would set up a system to supervise doctors' prescriptions.

"If any doctor is found giving improper prescriptions or excessive dosages, that doctor will be made public in the hospital and punished according to laws and regulations," Chen said.

The government would regulate the salaries of hospital staff, and disconnect the direct link between the income and charges for medicines and medical services, Chen said.

Regular examinations of large hospitals would be carried out, and those hospitals and doctors who violated rules would be punished according to regulations, Chen added.