User Name:     Password:        Join Us
  • 1
  • 2
  • 3
  • 4
  • 5
▪ Demystify Corporate Social Credit System in China
▪ China is deploying “Operation Skynet” to further “Fox Hunt”
▪ China is to award whistleblowers heavily – foreign companies are more vulnerable t
▪ 130 Chinese headhunters arrested, involving breach of 200 million personal info
▪ Corporate Compliance Programs Evaluation Issued by US DOJ (Chinese Translation)
▪ The prospect is promising to commercialize Level-3 autonomous driving in China
▪ Intelligent and digital infrastructures are scheduled to accompany automatic vehic
▪ Will China illegalize VIEs?
▪ You cannot miss the gold rush under China's new Foreign Investment Law
▪ Data must stay in China to get classified protection under Cyber Security Law?
▪ China is to fast-track law-making in autonomous driving
▪ What compliance obligations to meet to transfer data from within China?
▪ Chinese government uses digital forensics technology to dig bribery evidence
▪ A Chinese medical device distributor fined CNY 50,000 for bribing with Moutai
▪ How would Chinese E-commerce Law affect you (1)?
▪ Conflict between the culture and the Party’s rules: $70 gift money got a director
▪ "Excessive Pricing" from perspective of Competition Law
▪ Does China prohibit cross-border transfer of scientific data?
▪ Hypermarket Caesar jailed for ten years for giving “reward for go-between”
▪ How is environmental protection tax collected in China?
▪ China Redefined Bribery Anticompetitive in Nature
▪ China is to amend its Constitution
▪ Chinese government vowed to crack down on bribe givers more harshly
▪ China has its own Dodd-Frank; the award for whistleblower could be US$ 80K
▪ Chinese government may LIUZHI a suspect of wrongdoing
▪ Cooking clinical trial data is rampant and now criminally punishable in China
▪ 5th Viadrina Compliance Congress
▪ Does a compliance bird eat nothing?
▪ How Are Drugs Being Sold in China Despite the Anti-Corruption Crusading
▪ Chinese whistle-blower lauded while French boss fled out of China
▪ Life Sentence for Deputy Chief Justice of China
▪ Why Is Chinese Anti-bribery Law a Very Important Compliance Obligation?
▪ The Report on Corporate Compliance Management in China (2016)
▪ Use of "predictive coding" in eDiscovery document review…best friend or job replac
▪ Civil Fraud v. Criminal Fraud: Criminal Proceedings Not a Silver Bullet to Resolve
▪ Corrupt Chinese drug administrators jailed or executed, whose family members ended
▪ Tone from the middle cannot be ignored
▪ Is bribing a Chinese doctor bribing an FCPA governmental official?
▪ Criminal and Administrative Liability under China's Competition Laws
▪ Model Standards for Trade Association Compliance with China's AML
▪ Double Exposure to Legal Risk Under China's Competition Laws: Comments Upon the Ex
▪ New Privacy Standards for New Data
▪ Chinese Police Are Foxhunting Corrupt Officials
▪ Transfer of Personal Data Overseas from Singapore: Recent Enhanced Provisions
▪ New Guidance on Antitrust Notifications in China
▪ China Issued the Standards on the Quality Management of Using Medical Devices (Dra
▪ China Imposes Harsher Liabilities for Environmental Non-Compliance
▪ GSK Faces Two Corruption Fights in East and West
▪ European Court of Justice Abrogates Data Retention and Allows Data Detention
▪ China Is to Adopt Risk-based Supervisory Rules on Medical Devices
Home > Anti-Bribery & Fraud
Don't Put All Medical Eggs into One Blacklisted Basket

On December 25, 2013, National Health and Family Planning Commission of China (the “Commission”) issued the Regulations on Establishing a System to Track Commercial Bribery Violations in the Purchase and Sale of Pharmaceutical Products  (关于建立医药购销领域商业贿赂不良记录的规定) (the “Blacklisting System”).  The Regulations took effect from March 1, 2014.


According to the Blacklisting System, each provincial office of the Commission shall make the rules for the concerned province to implement the Blacking System.  Each provincial office shall release a blacklist at its official website in a timely manner and then report each blacklist (as well as those that are blacklisted) to the Commission within one month as of the release of the blacklist.  The Commission shall then release the blacklist at its own official website.


The manufacturers, distributors or their representative institutions and individuals of pharmaceuticals, medical devices and medical consumptions (the “Blacklisted Parties”) shall be blacklisted if they offer money or valuables to the working personnel that procure or prescribe the pharmaceuticals, medical devices and medical consumptions and if:

(1) A Blacklisted Party is found guilty of the crime of paying bribes even if the Blacklisted Party is not criminally punished under an unserious circumstance;

(2) There is a bribery violation although the concerned prosecutor decides not to prosecute the bribery case of a Blacklisted Party under an unserious circumstance;

(3) The concerned Communist Party of China disciplinary or supervisory organization issues a penalizing decision on a Blacklisted Party;

 (4) The concerned fiscal authority, administration for industry and commerce and food and drug administration issues an administrative punishment decision on a Blacklisted Party;

(5) And other situations where a Blacklisted Party is punished due to bribery.


A hospital or clinic shall provide an integrity clause in its contract with the concerned manufacturers, distributors and their representatives to alert them of the existence of the Blacklisting System.  


For a period of two years, all government-funded public medical institutions or the medical institutions within such a blacklisting province will be prohibited from purchasing pharmaceutical products, medical devices and medical consumptions from a Blacklisted Party.  The Blacklisted Parties shall be treated in disfavor in other provinces.  Those which are blacklisted twice within five years shall be barred from doing any business with all of the government-funded public medical institutions or medical institutions within the whole country of China. 


Despite all of the above “bad” news, there seems to be some good news.  Blacklisting is not contagious between parent and subsidiary companies.  In other words, if a parent company is blacklisted, its subsidiary company would not be blacklisted just because its parent company being blacklisted, and vice versa.  The businesses that manufacture, distribute and sell pharmaceuticals and medical devices should consider dispersing their compliance risks – do not use one business to sell all of their products.  In other words, don’t put all of the medical “eggs” into one blacklisted “basket”.


Tweet Like Email LinkedIn
There are no comments for this journal entry. To create a new comment, use the form below.
    Enter your information below to add a new comment.
Email:    (optional)
URL:    (optional)
Code: *
  Comment Moderation Enabled
Your comment will not appear until it has been cleared by a website editor.
The Compliance Reviews COPYRIGHT © 2013-19 All Rights Reserved. Supported by International Risk and Compliance Association and International Risk and Compliance Institute Limited. 沪ICP备10034943号-8