Fraud & corruption in the pharmaceutical industry in China

Despite increased enforcement of anti-graft legislation, such as the US Foreign Corrupt Practices Act (“FCPA”) and China’s own commercial bribery laws, fraud and corruption remain rife across many industries in China.

In the sales and marketing divisions of many corporations the benefits of engaging in bribery often outweigh the risks of getting caught and so there is often a sub-culture and acceptance of engaging in such unethical activity to secure contracts or performance related commissions. 

We draw on our forensic accounting and corporate investigation expertise, leadership ability, healthcare industry knowledge, investigative and intelligence field craft, and seasoned judgment to help our clients determine business reality, make informed decisions, and mitigate risk.

Rupert Utley, Managing Director & Head of Forensic & Investigation Services Mazars in Hong Kong

This article will introduce various unethical fraud and corruption activities that are common in China's pharmaceutical industry, as well as the related challenges and risks of running business in this industry, especially during the pandemic.

At Mazars we have dedicated forensics and investigation teams throughout Asia, with offices in most cities across greater China. We can help pharmaceutical companies and their legal advisors with various forensic accounting and corporate investigation services. 

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