Beijing’s recent campaign against foreign tech firms is picking up more momentum, with word that security software makers Symantec (Nasdaq: SYMC) and Kaspersky Lab have been banned from selling to government agencies. The move continues a trend that has seen Beijing take similar moves against software from Microsoft (Nasdaq: MSFT) and hardware from IBM (NYSE: IBM) over worries that their products could compromise national security.
Meantime in another ominous sign for foreign tech firms, a government ministry that conducts anti-monopoly investigations is warning Microsoft not to interfere with its ongoing probe of the company. Industry watchers will note that the warning from the State Administration of Industry and Commerce (SAIC) comes as an unrelated trial gets set to start for a British-American couple being charged with interfering in a bribery probe into British drug giant GlaxoSmithKline (London: GSK). Read Full Post…
A few news bits and data points are spotlighting the big potential in China’s healthcare market over the next few years for companies that can tap into an overhaul of the national medical system. While that news looks good for healthcare companies overall, the limited universe of publicly traded firms available to western investors looks a bit spottier due to individual company issues. Regulatory issues could also be a risk, as highlighted by a new price fixing ruling against US drug giant Johnson & Johnson (NYSE: JJ). Still, there could be some interesting buying opportunities for the right companies. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 29. To view a full article or story, click on the link next to the headline.
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UK Fraud Office Probes GSK (London: GSK) After Claims Of Foreign Bribery (English article)
China Mobile (HKEx: 941) Relaunches Own Brand Of Mobile Phones (Chinese article)
CCTV Attacks BMW (Frankfurt: BMW) Again On High Prices For Imports (Chinese article)
Two news threads that started with relatively isolated moves are showing signs of becoming trends, with word that Beijing is taking new actions against overseas tech and drug firms. In the former case, media are reporting that China is preparing to roll out new security checks for all foreign IT products, in a move that looks aimed at the computing and telecoms sectors. The latter case has media reporting that investigators have visited the offices of Swiss drug giant Roche (Switzerland: ROG), which could auger more formal moves against the company for corrupt business practices. Read Full Post…
China’s ongoing anti-graft sweep continues to gain momentum as we approach the end of the year, with major new developments in the headlines from British drugmaker GlaxoSmithKline (GSK) (London: GSK) and domestic energy giant PetroChina (HKEx: 857; Shanghai: 601857; NYSE: PTR). In the former case, GSK is taking the revolutionary step of saying it will no longer pay doctors anywhere in the world to promote its products. In the latter, media are reporting that another top PetroChina official has been detained and resigned as he assists with ongoing investigations of corruption at the state-run giant. Read Full Post…
I don’t know if I’m the only one who noticed this, but the flurry of attacks on foreign companies that began quite suddenly during the summer has ended just as quickly, replaced by what looks like a longer-term series of investigations against high-level officials at major state-owned firms. This second wave of attacks is obviously much more politically sensitive since it targets well-connected local Chinese officials, many of them high-ranking executives at some of the country’s leading state-run firms. Sensing that this anti-foreign campaign has now officially passed, visiting UK Prime Minister David Cameron has become a vocal supporter of GlaxoSmithKline (GSK) (London: GSK), the British drugmaker that was at the center of one of the biggest attacks against a multinational during the summertime campaign. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 4. To view a full article or story, click on the link next to the headline.
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Britain’s Cameron Defends GSK’s (London: GSK) Business Practices In China (English article)
The following press releases and media reports about Chinese companies were carried on September 24. To view a full article or story, click on the link next to the headline.
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4G License Timetable Not Set, Talk Of Q3 Release Unreliable (Chinese article)
GSK’s (London: GSK) China Sales May Be Down 30 Pct On Scandal: Analysts (English article)
Suntech (NYSE: STP) Announces Seizure Of Global Solar Fund Assets In Italy (PRNewswire)
Sina (Nasdaq: SINA) Weibo, Hisense (Shanghai: 600060) Roll Out Smart Air Con (Chinese article)
Used Car Website Operator Souche Secures US Dollar 8-Digit Funding (English article)
The following press releases and media reports about Chinese companies were carried on September 7-9. To view a full article or story, click on the link next to the headline.
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US Clears Smithfield’s (NYSE: SFD) Acquisition By China’s Shuanghui (English article)
China Telecom (HKEx: 782) Kicks Off 4G Equipment Tender – Source (English article)
US Prosecutors Add China Bribe Allegations To GSK (London: GSK) Probe (English article)
China Factory Fire Sends Memory Chip Prices To 3-Year High (English article)
PetroChina (HKEx: 857) Receives Notice Of US Class Action Lawsuit (HKEx announcement)
After several months of silence as they were targeted for a series of anti-graft investigations, I’m happy to see that western firms are finally speaking out about the biased nature of this Chinese campaign against them. The firms are voicing their grievance through an industry organization, the European Union Chamber of Commerce, which is complaining that western drug makers have been unfairly targeted in the campaign that began around 2 months ago and has netted such big names as Britain’s GlaxoSmithKline (GSK) (London: GSK), Switzerland’s Novartis (Switzerland: NOVN) and French drug maker Sanofi (SAN). At the same time, the United Nations is adding its voice to the debate, saying this kind of anti-corruption campaign should be a welcome step to cleaning up the country’s business environment. Read Full Post…
Lilly joins list of drug makers accused of massive bribery
I thought that maybe I had accidentally opened an old news page today when I read the latest headline that US drug maker Eli Lilly (NYSE: LLY) had been accused of massive bribery in China to sell its medicines. In fact, the headline wasn’t even directly about the allegations that had come from a Chinese newspaper report, but was rather based on a Lilly executive who commented that the company was “deeply concerned” about the latest claims that it spent more than 30 million yuan ($4.8 million) to bribe Chinese doctors to use its medicines. (English article) Read Full Post…
