Guangzhou Zhongyi's product, Xiaoke Pills, a combination of traditional Chinese and Western medicine, targets local diabetes sufferers drawn to traditional medicines, said Zou Qi, the firm's marketing director.

Liu Zhilong, a doctor specializing in treating diabetes at Guangdong Hospital of Traditional Chinese Medicine, said "Traditional Chinese medicines are actually quite effective in treating the disease," said Liu.

Last month, sales of British pharmaceutical giant's diabetes drug Avandia, was banned by the European Medicines Agency over concerns it may increase heart attack risk. All medicines containing rosiglitazone, including Avandia, Avandamet and Avandaryl, remain available in the US market, but additional safety labeling has been put in place concerning usage.

Earlier this week, GlaxoSmithKline ceased all promotional marketing of the drug in China, but sales are still permitted.