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…
Beijing regulators are making an example out of GlaxoSmithKline (GSK) （London: GSK) by accusing the British drug giant of massive bribery related to its aggressive sales tactics, spotlighting one of the major risks that foreign firms face when doing business in China.
While many of the allegations against GSK may well be true, the timing and high-profile nature of the probe against such a well-known and trusted western name look like a warning to all drug companies to stop this kind of behavior as China overhauls its healthcare system. Unfortunately for GSK, the company’s reputation and business in China will be severely damaged by the scandal. Many employees have already been fired since the scandal began, and some could even end up in jail for practices that are quite common not only in China but also in many western countries. Read Full Post…
The following press releases and media reports about Chinese companies were carried on July 31. To view a full article or story, click on the link next to the headline.
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Apple (Nasdaq: AAPL) CEO Cook Visits China Telcos As iPhone Sales Drop (Chinese article)
Sina (Nasdaq: SINA) Weibo, Alibaba to Launch Social E-Commerce Platform (English article)
Suntech (NYSE: STP) Adds 2 New Board Members (PRNewswire)
Glaxo (London: GSK) Sacks 100 Chinese Sales Reps in Bribery Case (English article)
Huace Film (Shenzhen: 300133) To Buy Croton Media for 1.65 Bln Yuan (English article)
The following press releases and media reports about Chinese companies were carried on July 20-22. To view a full article or story, click on the link next to the headline.
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Yahoo (Nasdaq: YHOO) To Reacquire China Yahoo From Alibaba – Source (English article)
SPD (Shanghai: 600000), China Mobile (HKEx: 941) In E-Payments Tie-Up (Chinese article)
The following press releases and media reports about Chinese companies were carried on July 18. To view a full article or story, click on the link next to the headline.
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China Blocks GSK (London: GSK) Finance Head From Leaving Country (English article)
