SHANGHAI: Chinese authorities said they were cracking down on price gouging of medical supplies and drugs, as fears of a massive COVID-19 outbreak grew following the nationwide lifting of strict restrictions.

In a dramatic shift toward economic reopening, China announced ten measures on Wednesday that loosen key parts of President Xi Jinping's signature "zero COVID" policy. However, as people scramble for cough medicines, flu medications, and masks, there is growing concern about an increase in infections.

A working group under the State Council, China's cabinet, issued a notice late on Friday, urging local governments to ensure smooth transport and logistics to maintain normal living and working conditions.

"No efforts should be spared to ensure smooth delivery of medical supplies, including vaccinations, antigen testing reagents, drugs, and masks," said the notice, published by China's ministry of transport.

The notice banned the unauthorized blockage or closure of highways, waterways, ports, railroad stations, and airports, to comply with China's easing of restrictions.

China's State Administration for Market Regulation warned against price gouging in anti-COVID products, citing the need to better protect human lives and health.

In a warning letter posted on Friday, the watchdog banned activities including price inflation, collusion, price discrimination, misleading propaganda, and hoarding.

Merchants must not "drastically raise prices when there's no evident increase in cost, or the cost rise far lags the price rise," the regulator cautioned.

In addition, they must not hoard anti-pandemic supplies that are in short supply, or spread word of price hikes to disrupt market order, the watchdog said.