China steps up drugs bribe probe

CHINA was intensifying its investigation into rampant bribery in the pharmaceutical and medical services sector with a fresh three-month probe slated to begin today, the Xinhua news agency reported yesterday.

The probe by the State Administration for Industry and Commerce (SAIC), a regulator in charge of market supervision, was aimed at stamping out bribery, fraud and other anticompetitive business practices in various sectors, Xinhua said.

It comes as other regulators such as the National Development and Reform Commission (NDRC) and the police conduct multiple investigations into how foreign and local firms do business in the economy.

Much of the focus has been on the pricing of items from medicine to milk powder and whether companies are violating a 2008 anti-monopoly law.

“It seems that the NDRC and SAIC have learned from their recent experience that they have the power to force companies to change their practices and bring prices down,” said Sebastien Evrard at law firm Jones Day. “They seem to be willing to exercise their powers in even more sectors that directly concern consumers.”

The SAIC would hand down severe punishment for bribery found in the bidding process for drugs and medical services as this hurt the interests of the Chinese people, Xinhua reported. – Reuters