Siemens' medical branch is being investigated by China's State Administration for Industry and Commerce over allegations of bribing Chinese hospitals to gain favor for expensive medical products, Beijing Business Today reported on Monday.

The paper quoted anonymous sources as saying that the administration has accused Siemens and its distributors of providing more than 1,000 hospitals with free medical appliances in return for the exclusive use of chemical reagents developed by Siemens on those appliances. In doing so, Siemens violated Chinese laws against unfair competition.

A variety of medical appliances, including blood testing devices, are involved.

Siemens has not been available for comment, and phone calls by the newspaper to the company's Chinese executives have gone unanswered.

The State Administration for Industry and Commerce began to investigate Siemens over the bribing allegations last year.

Siemens, together with General Electric and Philips, accounts for 70 percent of China's high-end medical equipment market. The company's medical branch in China mainly covers lab diagnosis, hearing aids and diagnostic imaging and treatment.

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