Inside China Today

Siemens AG’s bribery seen as towing the Party line

The China branch of Siemens AG has been confirmed to have practiced graft to secure huge deals in the medical, electricity and transportation industries. SOH has interviewed people from these industries to speak of these practices that in the mainland are very common, yet by written law it is illegal.

According to information from the U.S. Department of Justice on December 18, the German technology tycoon Siemens AG’s graft practices involved three of its subsidiaries in Mainland China and up to about 2 billion US dollars in value. During 2003 to 2007, Siemens AG Medical Engineering Group had paid around 14.4 million US dollars in its graft practices to five state-owned hospitals in China in order to secure orders for medical equipment worth 295 million US dollars.

Mr Xia from Nanjing who is working in the medical industry stated that even though Siemens is a massive company, they will not get any contracts if they do not approach the hospitals in China with substantial gifts and benefits. The writing of the tender is just a formality for the deputy and department heads insist on being given what they desire. He said that the communist rule in China has dirtied and impaired proper social development for this is due to their ways of running things from the very top of the government.

A few days ago, Siemens AG had reached an agreement on its global bribery case with the U.S. government, offering to pay a fine of 800 million U.S. dollars. In addition, Siemens AG also agreed to pay to the German government 395 million Euros (about 533 million U.S. dollars).

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