AstraZeneca faces pressure over China operations amidst executive detention

AstraZeneca, Britain’s largest drugmaker, has faced sharp criticism over its handling of the detention of Leon Wang, its former head of international and China operations. Wang has reportedly remained in detention for eight months after being arrested in Shenzhen, in connection with allegations involving the illegal importation of unapproved medicines and medical insurance fraud.

Despite the ongoing detention of Wang, AstraZeneca announced in March a $2.5 billion investment in China. This major commitment includes the establishment of a new global strategic research and development centre in Beijing. Critics have argued that this move demonstrates that the pharmaceutical giant is prioritising profits in one of its most lucrative markets over human rights concerns. China remains AstraZeneca’s second-largest market and a key factor in its rise as Britain’s most valuable publicly traded company.

Sir Iain Duncan Smith, former Conservative Party leader, strongly condemned the company’s actions, stating that they have shown “rapacious greed” and accused AstraZeneca of being in “full project kowtow mode to China.” He also criticised Chief Executive Officer Sir Pascal Soriot’s remarks, which acknowledged that the company has been unable to contact Wang during his detention and highlighted the restrictive nature of the Chinese legal system. Duncan Smith argued that AstraZeneca had taken insufficient steps to secure Wang’s release.

Amnesty International has also raised concerns about Wang’s disappearance and the extended nature of his detention. Sacha Deshmukh, Chief Executive of Amnesty International UK, pointed out the lack of transparency regarding Wang’s case and argued that it reveals broader risks for companies operating under a regime that disregards legal norms and basic rights. Amnesty International added that multinational corporations must now, more than ever, adhere to human rights principles, whether in supply chains or in responding to the treatment of their personnel.

Criticism also extended into the business ethics sphere. Alicia Hennig, an expert in business ethics at Dresden University of Technology, warned that AstraZeneca’s success in navigating China’s complex market may have caused it to overlook serious ethical risks. Meanwhile, Peter Humphrey, a former corporate investigator who was imprisoned in China during a bribery scandal involving GlaxoSmithKline, suggested that AstraZeneca’s efforts to support Wang have been inadequate.

The detention of Wang brings heightened scrutiny to the challenges and ethical dilemmas that come with doing business in China. As AstraZeneca continues to expand its footprint there despite these challenges, questions remain over its broader handling of the risks and responsibilities tied to operating in a market governed by rigid state control and opaque legal processes.