State Administration for Industry and Commerce: No bribery investigation was conducted on Siemens Medical!
Yesterday, major media and WeChat platforms were citing foreign media reports that the State Administration for Industry and Commerce had launched an investigation into Siemens Medical , suspected of bribing 1,000 hospitals.
On the same day, the official website of the State Administration for Industry and Commerce, the only “commercial and industrial news†was “Response: The SAIC did not conduct a commercial bribery investigation on the Siemens medical departmentâ€, which stated that the source was “the General Office of the State Administration for Industry and Commerceâ€.
The response is short and the full text is as follows:
In response to recent media reports that the “Commerce and Commerce Bureau launched a commercial bribery investigation on the Siemens medical departmentâ€, a spokesperson for the State Administration for Industry and Commerce said that the State Administration for Industry and Commerce did not conduct an investigation into the commercial bribery of Siemens and did not accept interviews from relevant media.
Response to the media report "The SAIC's investigation of the commercial bribery of the Siemens medical department"
Yesterday's report, as if the GSK incident reappeared in general: foreign companies, giants, anti-bribery, investigations, etc., are very eye-catching. At one time, the comments on the Internet were overwhelming, and the giants of foreign companies were appraised. They believed that this ushered in the spring of domestically produced equipment. Some foreign-owned medical machinery giants were investigated and said that this was an optional law enforcement.
Because I saw the article "Response" from the State Administration for Industry and Commerce very late, the author has already sorted out the industry thinking caused by this storm, so I might as well add it to the following:
I. There are precedents for investigating illegal foreign-funded medical equipment enterprises
The English initials of the three companies General Electric Co., Philips (Royal Philips NV) and Siemens (Siemens AG) are GPS. This is exactly the same as the GPS navigation system abbreviation, currently China is using the domestic "Beidou" navigation system to reduce the dependence on the GPS navigation system. In the medical machinery industry, going to "GPS" was once the dream of domestic medical devices. Any foreign-invested company in China, whether you are a predator or a small shrimp, must strive to abide by Chinese laws and ethics.
The same is true for Chinese exporting companies to abide by the laws and ethics of any foreign country or region. Therefore, if the state sovereignty department investigates the giant medical equipment in China, it is also the normal performance of exercising state sovereignty and performing management duties, which is the meaning of "rights." Just like the anti-monopoly investigation of the medical machinery industry initiated by China in 2014, it is a normal move to maintain economic sovereignty!
2. If investigating foreign medical giants, is it optional law enforcement?
As we all know, in the large-scale medical equipment such as CT, nuclear magnetic resonance, nuclear medicine, and angiography machines in China, the total market share of GPS is more than 80%. In addition, imported medical products account for about three-quarters of China's $34 billion medical equipment market. In addition to large equipment, foreign medical device products still dominate the many consumables. For example, in the blood sugar products, Johnson & Johnson and Abbott still occupy more than 60% of the market. In the hospital's terminal supplies, Medtronic and other foreign-funded enterprises occupy a dominant position in orthopedic products, cardiac stents, and advanced accessories.
The occupants of such a large market share are more obliged to produce and operate according to law. They are slightly swaying and will quickly spread to the entire market. Therefore, strict management of them is necessary. From the perspective of management, "grasping the key minority" is the true chapter. If the key is the majority, there is no more reason to relax.
It should be said that if the investigation is initiated, it will be part of the anti-corruption investigation in the entire Chinese medical field. As part of the national anti-corruption action, it is not selective anti-bribery investigation. Checking these large foreign medical giants is equivalent to checking the majority of the entire medical equipment market. As a method of investigation, it is undoubtedly correct!
3. Will it investigate domestic medical machinery enterprises?
At the same time that foreign medical giants are being investigated, are many local medical device companies hiding from watching the show? There was a war in the sky, and the songs and dances were flattened here, and the situation was awkward! More good people are falling into the rocks, and there is a big "GPS" to go, and their market is always optimistic. Be aware that after the 2014 antitrust investigation, the state did not place local equipment companies under the protection of the Eagle Wing.
From the development of the domestic anti-corruption situation, the exposure of corruption cases in the medical field, and the deployment of the hospitals by the competent authorities, it can be seen that medical anti-corruption is a big game. What is falling is one of the key pieces, and the follow-up will follow up with the relevant arrangements, including launching a survey of large local pharmaceutical companies.
Large-scale central enterprises have not been safe in recent times, and the winds are getting tighter. The new leadership has long declared that anti-corruption is not a selective anti-corruption, but that there is corruption and greed. Where there is corruption, the investigation will point to who.
Some people joked that under the strong anti-corruption atmosphere of the country, how many tigers were captured and how many flies were killed is no news. What may become news in the future is what companies that have not paid bribes! I hope not to be unfortunate!
4. Investigating foreign giants does not mean directly supporting local enterprises.
All along, breaking the monopoly of foreign-funded medical devices in China may be a major event for some domestic devices. In 2014, the Ministry of Commerce of China launched a monopoly investigation of foreign-funded medical devices, setting off a survey that has been unsettled so far. Perhaps, some people hope that such a storm should be scraped several times a year.
Even now, even if the investigation is reopened, people should be soberly aware that the unlucky foreign capital does not mean that domestic capital is good! Investigating foreign giants does not mean directly supporting local companies! In the face of a strong technical level gap, if you do not anger the product quality, even if the foreign medical giants completely withdraw from the Chinese market, local enterprises can not fully obtain the ultimate trust of consumers.
5. Who is not wrong in the investigation?
Medical device manufacturers, agents, hospital directors, equipment section chiefs, key personnel at both ends of medical device sales supply and demand form a hidden high-risk interest chain. In the current society, “there is no medical treatmentâ€, the huge role played by medical devices in the medical field and the astonishing corruption problems are equally compelling.
On April 29th, the two prime ministers Li Keqiang and Liu Yandong made important instructions in the video teleconference on deepening the reform of the medical and health system in 2015, demanding that the old interests be broken by the spirit of testing the deep water and dare to risk the beach. This is the policy environment necessary for the new medical reform to accelerate.
In addition, the hospital's hospital inspection and deployment, the State Administration of Industry and Commerce in early April is also holding a bribery case analysis meeting in the pharmaceutical purchase and sales links, and increased medical bribery investigations, all aiming at the breeding ground for medical corruption. It can be seen that China is seeking to establish an effective medical anti-corruption system. It is a permanent solution to investigate and deal with the "Wang Tianchao" double hundred presidents, especially in the treatment of the long-term development of the pharmaceutical industry.
At present, it is an indisputable fact that the overall technical level of foreign medical and medical enterprises is high. However, foreign medical giants cannot use their own advantages to engage in monopoly and set a high price. However, there are also some people who doubt that the bribery of foreign companies in China is the same as that of domestic non-governmental enterprises. To investigate, we can't just invest in foreign-invested companies, and domestic companies are no exception! It can be seen that in the time of the anti-corruption overall situation, it may not be wrong to check who is!
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