Police say GSK broke law to boost sales

China police have said British drugmaker GlaxoSmithKline offered bribes to officials and doctors in attempt to boost sales in the country. Four senior Chinese executives have been detained.

The case against GlaxoSmithKline, Britain's biggest drugmaker involved a large number of staff and a huge sum of money over an extended period of time, with bribes offered to Chinese government officials, medical associations, hospitals and doctors to boost sales and prices.

GSK executives also allegedly used fake receipts in unspecified tax law violations.

Police said that since 2007 the company had transferred as much as 30 billion yuan, or 4.9 billion US dollars to over 700 travel agencies and companies, using them as vehicles for bribery.

Four senior Chinese executives have been detained. Under China's legal system, they will be formally charged after preliminary investigations have been completed. GSK's UK headquarters said it would cooperate with the authorities.

China has targeted foreign firms on multiple fronts in recent months, including alleged price-fixing, quality control and consumer rights, forcing companies to defend their reputations in a country where international brands often have a valuable edge over local competitors in terms of public trust.