China probes Siemens health unit for bribery

A Chinese regulator investigated Siemens AG last year over whether the German group's healthcare unit and its dealers bribed hospitals to buy expensive disposable products used in some of its medical devices, sources said.

The investigation, which has not previously been reported, follows a wide-reaching probe into the pharmaceutical industry in China that last year saw GlaxoSmithKline fined nearly $500 million for bribing officials to push its medicine sales.

China's state administration for industry and commerce (SAIC) accused Siemens and its dealers of having violated competition law by donating medical devices in return for agreements to exclusively buy the chemical reagents needed to run the machines from Siemens, the people said.

Reuters was unable to determine whether Siemens had denied the accusations or if any action was taken against the company or the dealers. A senior spokesman for Siemens in Germany said he was "not aware" of the investigation and declined to comment on specific questions about the investigation.