GlaxoSmithKline (NYSE:GSK) is considering whether to pull out of China as the company deals with an investigation into alleged corruption that has already tarnished the drug maker’s business and brand in the world’s second largest economy.

Two British media outlets, The Telegraph and the BBC, cite unnamed sources in reporting that GSK is weighing whether to withdraw from China. Four Chinese GSK executives were detained in July as part of a police investigation into allegations that the GSK directed as much as $490 million in bribes to doctors and officials in order to boost sales of GSK drugs. While GSK has insisted that the allegations involved the actions of individuals, China’s official news agency Xinhua this week reported that the bribery was coordinated by the company.

BBC Business Editor Robert Preston says in a column that GSK’s sales have been badly affected by the taint of the investigation. A source told Preston that GSK must evaluate whether the infrastructure of generating sales in China is affordable if there is no assurance that the company cannot return to business as usual in the country.

The Telegraph also reports about the concerns regarding future business, but the newspaper says other sources suggest that the withdrawal threat is a ploy to negotiate down a fine that could top $3 billion.

GSK’s 2012 revenue in China was just over $1 billion; so the drug maker may not think of China as worth the cost of doing business. Still, nearly every drug company includes China in its plans because the country represents a large market of potential new customers. For now, however, Chinese officials are making it hard for GSK and other drug companies to do business.

“Quite a few major hospitals are not allowing sales representatives to enter and the public security bureau has said plain clothes policemen have been sent out to observe what is going on,” a source told The Telegraph, adding that other foreign pharmaceutical companies were also being blocked. “They are sending out a message to scare everyone, but I heard GSK were thinking of leaving because of the huge fine.”

Preston’s source tells him GSK cannot accept corporate liability as the price for settling with Chinese officials and resuming business in China. If that happens, GSK would also risk facing enormous fines in the United States and the United Kingdom, which each have strict anti-bribery laws. 

GSK operates its U.S. headquarters in Research Triangle Park.