March 21, 2019
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Traditional medicine company founder arrested in China

Beijing, Jan 7 (efe-epa).- Police in the northeastern Chinese city of Tianjin has arrested the founder of Quanjian, a traditional medicine company, official news agency Xinhua reported on Monday.

Shu Yuhui was accused of pyramid selling, misleading advertising and illegal medical practices, the report said.

The Tianjin police had began probing the company on Jan. 1 after an article in the Chinese media had blamed the company for the death of a four-year-old girl from cancer.

Until now, 18 people have been arrested, including Shu, while another two have been released on bail pending trial, according to Xinhua.

Quanjian was founded in 2004 and is at present a conglomerate with branches dedicated to diverse businesses, including cosmetics, finance and sports.

It came under the glare last month when Dingxiang Yuan, a healthcare information sharing website, had alleged in an article that the health of a girl, Zhou Yang, who died in Dec. 2015 from cancer, had deteriorated after her treatment was substituted with allegedly anti-carcinogenic products from Quanjian.

According to the article, the girl's father spent 5,000 yuan ($728) on the medicines and sued Quanjian in 2014 after he found an ad that used his daughter's picture to promote its products by asserting that Zhou's health improved miraculously.

However, the court did not rule in favor of Zhou's father citing lack of evidence that the ad had been directly published by Quanjian.

The company then issued a statement in which it denied having used the girl's photo to promote its products.

In 2014, Chinese public broadcaster CCTV had questioned the effectiveness of some of the products from Quanjian that claimed to prevent diseases of the prostate or cure heart disease and insomnia.

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