A compensation plan for victims was also unveiled. Families of those who died due to the problematic vaccine will receive a oneoff compensation of 650,000 yuan for each victim, and victims who became severely disabled or paralyzed will get 500,000 yuan. The compensation will be 200,000 yuan for those mildly disabled, according to the plan.

The company, based in Changchun, Jilin, is a major vaccine producer and has been entangled in controversy since July 15, when the State Drug Administration announced it found the company to be engaged in falsifying production and inspection records in the making of rabies vaccines.

Changsheng's illegal activities included using expired vaccine raw materials, altering production dates, forging permits and destroying evidence during inspections, the statement said.

The State Drug Administration annulled the rabies vaccine approval document and certificates for related products from the company and imposed a fine of 12.03 million yuan.

The Jilin Food and Drug Administration revoked the company's pharmaceutical production license, confiscated illegally produced vaccines and total income of 1.89 billion yuan from defective vaccine sales, and imposed a fine of 7.21 billion yuan, which was three times the value of the drugs it illegally produced and sold.