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France's Sanofi opens research hub in China
by Staff Writers
Shanghai (AFP) Sept 25, 2014


US software firm Adobe to shut China research branch
Shanghai (AFP) Sept 25, 2014 - US software giant Adobe will shut its research arm in Beijing by the end of the year, laying off 350 people, according to a statement, as foreign technology firms face a worsening business climate in China.

US tech firms, including Microsoft and Qualcomm, have come under investigation over business practices, the latest in a series of industries to face tougher government scrutiny.

However, Nasdaq-listed Adobe denies the move is a reflection of the Chinese market and says it is part of a broader strategy to place technical teams in fewer locations, according to the statement provided to AFP on Thursday.

"The move will not affect Adobe's overall level of investment in R&D (research and development) and is not an indication of financial performance in China or worldwide," the statement said.

Adobe, which is based in San Jose, California, this month said net income for the three months ended August 29 slumped 46 percent year on year to $44.69 million.

"We are committed to China as a long-term market, and will continue our sales presence nationally as always," the firm, which makes the Acrobat and Photoshop software, said.

Chinese authorities have raided the offices of Microsoft as part of an anti-monopoly investigation aimed at its Windows operating system -- which is used on the vast majority of computers in China -- and the Office suite of programmes.

The head of the government agency investigating Microsoft for what it calls "monopoly actions" said last month that the probe includes the way the US giant distributes its media player and browser.

Chinese state media has reported that US chip maker Qualcomm is also being probed over an alleged monopoly position in the mobile phone chip market.

Some analysts have linked the investigations to a US government move to indict five members of a Chinese military unit for allegedly hacking American companies for trade secrets.

French pharmaceutical giant Sanofi opened a research hub in Shanghai Thursday, the company said, as foreign drug firms face government scrutiny after drugmaker GlaxoSmithKline (GSK) was found guilty of bribery last week.

The facility, the fifth global hub for the company and its first in Asia, groups 12 countries including the world's most populous nation of China, Sanofi said.

The China-based operation will employ 1,400 people, it said. Sanofi officials declined to give an investment figure.

"With the launch of the hub, we will continue to pioneer R&D (research and development) in Asia-Pacific," said Frank Jiang, Sanofi's head of R&D in Asia-Pacific.

Shanghai has sought to attract multi-national companies to set up regional headquarters in the city with the number reaching 470 as of mid-year, according to state media.

The Shanghai facility will research and develop products in four broad areas -- biopharmaceuticals, vaccinations, disease and animal health -- in cooperation with other global hubs, company officials said.

The company already has existing R&D capabilities in China, along with seven plants producing mainly for the China market, they said.

The opening comes just days after China fined British drugmaker GSK 3.0 billion yuan ($490 million) for bribery and handed jail terms of up to four years to five executives.

Chinese state media has reported that authorities have visited offices and requested information from other foreign pharmaceutical companies following the GSK case.

The 21st Century Business Herald newspaper last year reported that an anonymous whistleblower had raised allegations of bribery against Sanofi in China.

But a spokeswoman for Sanofi told AFP on Thursday that they were not aware of any misconduct.

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