1. The project focuses on the newly released GSK bribery scandal in China, and especially on its causation, which in my view can be partially explained by the archaic Chinese regulatory culture. In defending this view, I show first that features of that culture can lead to corruption, and second that historical Chinese morality has a significant effect on the contemporary legal system. Both of these features have enabled the scandal. The GSK Scandal CHINA In July 2013, Pharma giant GlaxoSmithKline(GSK) was accused of bribing Chinese doctors with extravagant gifts in return for prescriptions of their products. GSK has paid as much as £320 million to bribe Chinese doctors, hospitals, medical association and government officials by filing fraudulent invoices for personal gain and funds which passed through around 700 travel agencies and consultancies. Reasons that could lead to corruption China is the biggest commercial frontier of the medical market. Pharmaceutical sales have risen sharply in recent years. China’s unique legislative hierarchy Too many rules and regulations at too many levels with inappropriate systems of prior checking, supervision and annulment. Imperfection of Chinese Company Law Strict rules on the entry into the market, but less focus on supervision. Chinese Doctors are only earning normal level of income. Comparatively low relative to the earning level of foreign doctors. Doctors’ entire control over prescription If there are similar functional drugs to chose from, it is under a doctor’s discretion to decide which drug is to be taken. Archaic regulatory effect on GSK Traditional political system totalitarian system: The emperor has absolute control over the entire country, constituting a closed pyramid style system of dominance by one man which excludes any other powers.  China is under a unitary legal system not a federated one, which means centralised government power authority.  GSK bribery is for the government to notify other companies of their high- profile anti-corruption campaign. Traditional Legal enforcement trial format: irrational physical torture process to obtain a confession, which compels people to put expectation of honesty individual officials.  the deeply-rooted distrust of the legal system and finding personal connections in order to avoid formal procedures under present legal system.  GSK spent £320 million in investing and establishing human relationship with governmental officials, hospitals and governmental association. Lingering effect of Traditional Multi- layered Chinese bureaucracy :The emphasis of law was merely relied on for the protection of those people occupied higher ranks in society.  Those phenomena led foreign investors to put more emphasis on personal connections in China.  GSK’s expansion in China in a strategic cooperation to form a joint venture with Jiangsu Walvax Biotech Company on paediatric vaccines in 2009. Acknowledgements I thank Dr. Kimberley Brownlee for all her valuable suggestion and help during the whole project and also the URSS team for this wonderful opportunity.