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Siemensbribedthousands ofhospitalsexposed, a source said, could hint at further investigations into other medical device makersChina Daily, May 4 (Reuters) - China's State Administration for Industry and Commerce last year launched an investigation into Siemens (Siemen) (SIEGn.DE) to see if its medical department and distributors bribedhospitalsbuy ingress of high-priced one-off products used in some of its medical equipment, three sources familiar with the situation told ReutersThe investigation into "Siemensbribe
thousandhospitals" had not been previously reportedLast year, a full Chinese investigation into the pharmaceutical industry led glaxoSmithKline (GSK.L) to be fined nearly $500m for bribing officials to promote drugssources, said China's State Administration for Industry and Commerce accused Siemens and its dealers of violating competition rules by donating equipment in exchange for an agreement that allowed hospitals to buy exclusive chemicals needed to use Siemens medical equipmentwhether Siemens denied the allegations and whether the company and its dealers responded, Reuters could not say A senior spokesman for Siemens in Germany said he was unaware of the "Siemens bribery" investigation and declined to comment on specific issues related to the investigation the General Administration of Industry and Commerce declined to comment on "Siemens' bribery of thousands of hospitals." a source who said the investigation into Siemens involved as many as 1,000 hospitals and could hint at further investigations into other medical device makers comes at a time when the Chinese government is asking hospitals to increase their use of domestically produced medical equipment and reduce their dependence on imports sources said the General Administration of Industry and Commerce had accused Siemens and its dealers of "commercial bribery" under Article 8 of the Anti-Unfair Competition Law Such practices, while in theory illegal, are common in China's medical industry three sources, who asked not to be named, two of whom had direct knowledge of the investigation and the third who worked closely with Siemens' medical team in China and had a brief understanding of the investigation Reuters could not determine which dealers would be involved in the Siemens bribery investigation from Wal-Mart bribery, IBM bribery cases, Coca-Cola employee bribery, KPMG violations scandal, Avon bribery scandal, to the Big Mo East window incident and the Nike bribery case led by Xie Yalong, to GlaxoSmithKline bribery case, to the recent revelation of Siemens bribery of thousands of hospitals Why have so many foreign companies paid bribes in China over the years? 1
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