By Li Hongmei

GlaxoSmithKline is considering whether to pull out of China, where a criminal investigation has left the company facing a potential 20bn-yuan (2bn-pound) fine and the severance of ties with major hospitals.

It was said GSK could pull out of the country because of "the size of the fine it faces and the increasing difficulty of doing business."

Negotiations are continuing between the British pharmaceutical giant and the Chinese relevant authorities over how to resolve allegations that GSK funnelled 323m pounds in kickbacks to Chinese doctors in order to win market share.

GSK has "serious concerns" over its future in what will soon be the world's second-largest pharmaceutical market, according to a source close to the company.

However, other sources suggested GSK was using the threat of withdrawal as a bargaining chip to negotiate down the huge fine of 20bn yuan. Last year, GSK's revenues in China were 750m pounds.