SHANGHAI, July 4 China's top economic planning
agency has opened an investigation into pharmaceutical giant
GlaxoSmithKline Plc's operations in China, an official
newspaper reported on Thursday, as foreign firms come under
pressure from Beijing for possible price-fixing.
The National Development and Reform Commission (NDRC) has
begun a survey on production costs at 60 firms, including
Britain's GlaxoSmithKline and 10 China-listed firms, the
official Securities Daily said.
The investigation could focus on the difference in prices of
imported products sold by foreign firms, such as
GlaxoSmithKline, in China compared with those in other markets,
the paper said citing unidentified sources.
The NDRC did not reply to a request from Reuters for more
Officials at GlaxoSmithKline could not be immediately
reached for comment.
The NDRC is also investigating into possible price-fixing
and anti-competitive behaviour by five instant milk powder
makers, including Swiss food company Nestle and French
In response, Nestle and Danone said on Wednesday they were
cutting the price of infant formula milk in China.
The NDRC probe into GlaxoSmithKline comes as high-level
Chinese staff at the firm are being investigated by police in
the south-central Chinese city of Changsha on suspicion of
Changsha police have not provided any further details about
A GSK spokeswoman in London said investigations by Chinese
authorities into the firm's operations in China were ongoing,
but added it was unclear what the investigations were about.