GSK Under China Probe

By IVCPOST Staff Reporter

Jul 04, 2013 02:48 AM EDT

The National Development and Reform Commission or NDRC began a survey concerning production costs of over 60 firms situated in China. GlaxoSmithKline, a British based pharmaceutical company along with then others are currently being probed.

Many foreign firms are under the scrutiny as they come under pressure from Beijing for price fixing. The investigatin might focus on the differences on the prices for imported products sold by foreign firms like GSK.

The NDRC is also looking into other industries for possible price fixing and anti-competitive behavior. Rivals  Danone of France and Swiss food company Nestle are on the list. In response to the probe, both companies are cutting prices for infant formula sold in China.

The NDRC probe for GSK comes as some high level Chinese staffed employed by SGK are under investigation on suspicion of economic crimes. A GSK spokesperson based in London said that investigations by authorities into the company's operation are ongoing.

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