Vaccine scandal results in fines and legislative reforms
In July, the nation's top drug regulator announced that Changchun Changsheng Life Sciences Co had broken the law, including faking production records in the manufacture of a rabies vaccine. A probe uncovered other malpractice by the company, such as using expired materials.
In response, leading officials pledged to impose harsh penalties on violators and reform oversight of the vaccine industry. The company was fined 9 billion yuan ($1.3 billion), the heaviest fine levied on a domestic drug producer in recent years, and senior executives will face criminal charges. The incident led to changes in legislation, with the Drug Management Law being revised. A new law, the Vaccine Management Law, was drafted and submitted to the top legislature for a first review at the end of last year.
Movie star scandal prompts changes in payment of taxes
In one of last year's biggest celebrity scandals, A-list actress Fan Bingbing was fined 883 million yuan ($128 million) for tax evasion, highlighting a nationwide crackdown on the practice to regulate tax payments in the film and television sector.
On Oct 3, Fan－China's highest-earning entertainer according to Forbes magazine in 2017－posted an apology on her Weibo account two hours after Xinhua News Agency reported the fine, the largest of its kind in recent years.
On Oct 10, the State Administration of Taxation started a campaign to regulate tax payments, and ordered all companies in the sectors of film and television to audit all tax payments made since 2016.
Those who made remedial payments before Dec 31 will be exempt from administrative punishments, while those who refused to take action will be punished, according to the administration.
