357 officials implicated in cases concerning the illegal sale of improperly stored vaccines will face penalties including losing jobs or demotion.
The decision follows an executive meeting of the State Council, China's Cabinet, held on Wednesday.
So far 192 criminal cases have been filed nationwide and 202 people detained over the scandal.
Meanwhile, a decision to amend a regulation on the management of vaccine circulation and use has also been approved during the meeting.
It required that B-class vaccines should be procured in the same way as their A-class counterparts, which are covered by the national compulsory immunization body, and procured under the organization of provincial-level disease control organs.
A system to track the entire process from manufacturing, storage, transportation to use, will also be set up, and institutes or hospitals must request storage temperature records upon receiving vaccine products.
Zhou Zijun, a professor from the School of Public Health of Peking University, says the system is important because it minimises possible damage, and allows for the recall of poor quality products.
"With the help of the tracking system, we could know the vaccines' storage and transportation temperature, as well as its fluctuation situation during the processes. Once bad effects occur, we would know the vaccines' manufacturers and whereabouts."
Fines for those illegally selling or improperly storing and transporting vaccines will be increased, while government officials will also be required to resign from their jobs if they fail to perform their supervision duties well.
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