Do you automatically disbelieve everything coming out of Europe, the United States, or any other country that carries out scientific research or has a regulatory framework for medicine? If you don't believe in the ability of China to run a life and death regulatory agency without systemic fraud, what is your reason for trusting their journalists?
It took only a few minutes to track down the original source for this claim to an article by the Economic Information Daily [1]. I don't speak or read the language but Google Translate did a pretty good job: the CFDA (Chinese FDA equivalent) report was neither made public nor shown to the journalist and the article is based on "an anonymous source within the agency." Putting aside the reliability of the source, according to the article their definition of fraud includes omission of adverse reactions and other clinical data.
I'm sorry to break it to you but no other medical regulatory agency on earth is much better. There have been no conclusive studies on omission of data in clinical trials in the US or Europe so for all we know 100% of their trials fall under the definition of fraudulent used by the SFDA. This is a problem the FDA is painfully aware of because of their very public failures, like Rofecoxib (Vioxx), which were due to clinical data withheld by pharmaceutical companies. Regulations for mandatory reporting were only enacted by the FDA in 2008 and since then the system has been plagued by fraud driven by our top institutions [2].
Without access to that report and the raw data, the article is classic FUD. The same problems are systemic in agencies like the FDA which has nearly a century more experience regulating drugs than the CFDA.
[1] http://www.chinanews.com/m/sh/2016/09-09/7998783.shtml
[2] https://www.statnews.com/2015/12/13/clinical-trials-investig...