The companies which won contracts to produce and sell drugs and medical equipment based on illegal deals may face loss of production licenses, said Shao Mingli, director of the State Food and Drug Administration.

Shao detailed elements of the anti-bribery campaign at a national conference held on Thursday in Beijing.

In his presentation, Shao highlighted several priorities on curbing commercial bribery in drug and medical equipment businesses, such as providing commissions to health workers in public bidding, qualification authentication and inclusion in medical insurance system.

A whistleblower's hotline has been made public by the SFDA, which also requires provincial food and drug authorities to encourage complaints from the public.

Some companies and individuals have offered commissions to health officials and staff to secure contracts for substandard drugs and medical equipment, resulting in medical accidents.

And some doctors prescribed expensive drugs for which they received kickbacks.

China's Ministry of Health has appointed a team headed by Health Minister Gao Qiang to lead the national crackdown on commercial bribery in the health sector.