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GlaxoSmithKline Admits Possible Violation of Chinese Law

British drugmaker GlaxoSmithKline -- faced with bribery allegations in China -- is acknowledging that several of its executives may have violated the country's laws.

The company said Monday that several of its senior officials appear to have acted outside the company's regulations and controls and breached Chinese law. The drug firm, one of the world's largest, said it had "zero tolerance" for the violations.

Chinese officials accused the company of bribing officials and doctors to increase drug prices, to boost sales and profits in the country. The authorities said the drug firm transferred nearly $500 million to 700 travel agencies over a six-year period and traded in sexual favors as part of the bribery scheme. China has detained four GlaxoSmithKline officials.

GlaxoSmithKline has pledged to cut the prices of its drugs in China.

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