Page 104 - 2015_WhitePaper_web
P. 104
5 White Paper on the Business Environment in China
prove land governance, and reduce the government’s depen- of contamination), assessment of those threats by a central-
dence on revenue from land conversions and land leases. ized government body, and the subsequent enactment of
standards or adoption of other mitigation measures that are
ey could facilitate the transition from land asset sales to a proportional to the size of the risk. At the same time, the
modern tax system aligned better with China’s new economic Draft FSL also requires greater responsibility on the part of
structure. ey could also deepen land markets, clarify ru- manufacturers and distributors of food. For example, the
ral citizens in their property rights and land assets at home, draft requires self-audits by food manufacturers. e Draft
and boost their opportunities and entitlements for integrating FSL imposes additional requirements on entities in various
into cities. us to increase the e ciency of land use, it is segments of the food industry and in di erent parts of the
necessary to ensure the security of agricultural land tenure, supply chain (manufacturing, distribution, retail) to ensure
including introducing the transferability of land rights and safety. For example, it requires that infant formula manufac-
reforming land acquisition and compensation practices. is turers implement special good manufacturing practices and
action includes rolling out the recent policy decision to grant that they self-audit and report on those audits to local food
inde nite land use rights to farmers, to expand land registra- and drug authorities. It also prohibits contract manufacturing
tion, and to strengthen rural land markets. “41 by infant formula manufacturers.” 46
Legislating Towards Food Safety Among the most far reaching requirements are those re-
Food safety remains an ongoing concern, so in yet another lated to penalties. e Draft FSL increases penalties and li-
abilities signi cantly. Speci cally, the draft increases admin-
attempt to legislate its way to food safety, China released a istrative nes by agencies for FSL violations, the potential
new ve-year plan “to upgrade its food safety regulations in for civil compensatory and punitive damages in related liti-
June 2012. According to the o cial Xinhua News Agency, the gation, and the potential for criminal prosecution. Perhaps
government will revamp outdated rules, review and abolish more ominous is the pledge to strengthen the “link” between
contradicting or overlapping standards, and draft new codes food safety regulation and criminal penalties. e Draft FSL
by 2015. ere are currently more than 2,000 national food calls for “prompt” reporting of suspected food safety crimes
regulations and 2,900 industry-based regulations on the by CFDA and other administrative agencies to the Ministry
books, many of them overlapping or contradictory.”45 of Public Security (China’s police force) for immediate inves-
tigation. China has already cracked down on violators of food
According to the plan, “14 government departments, in- safety standards through the Criminal Code over the last sev-
cluding the ministries of health, science and technology, and eral years. e draft law increases the trend toward criminal
agriculture, will work to revamp safety standards, with prior- prosecution in this area.46
ity given to dairy products, infant food, meat, alcohol, veg-
etable oil, seasoning, health products, and food additives. “It
is an onerous task for the government to ensure food safety,”
because China’s food industry still su ers from “nonstandard
management and many hidden safety risks,” said a state-
ment released in June 2012 following a State Council execu-
tive meeting presided over by Premier Wen Jiabao. e State
Council vowed a “vigorous crackdown” on those who endan-
ger food safety. e government should “enhance supervision
by setting up an e cient mechanism that covers all links in
the food industry and a rigid food recall system for destroying
defective products,” the statement said. Moreover, the gov-
ernment will make “special e orts” to establish standards for
testing contaminants, food additives, microorganisms, and
pesticide and animal drugs. 45
In 2014, the National People’s Congress (NPC), released
a draft of the revised Food Safety Law (Draft FSL) for pub-
lic comment. Formerly called the Food Hygiene Law and
re-named Food Safety Law in 2009, which was also when
the government altered most of its content. e Draft FSL
“focuses on risk assessment and management. It requires in-
creased attention to government monitoring of speci c risks
(i.e., foodborne illnesses, illegal additives, and other forms
104
prove land governance, and reduce the government’s depen- of contamination), assessment of those threats by a central-
dence on revenue from land conversions and land leases. ized government body, and the subsequent enactment of
standards or adoption of other mitigation measures that are
ey could facilitate the transition from land asset sales to a proportional to the size of the risk. At the same time, the
modern tax system aligned better with China’s new economic Draft FSL also requires greater responsibility on the part of
structure. ey could also deepen land markets, clarify ru- manufacturers and distributors of food. For example, the
ral citizens in their property rights and land assets at home, draft requires self-audits by food manufacturers. e Draft
and boost their opportunities and entitlements for integrating FSL imposes additional requirements on entities in various
into cities. us to increase the e ciency of land use, it is segments of the food industry and in di erent parts of the
necessary to ensure the security of agricultural land tenure, supply chain (manufacturing, distribution, retail) to ensure
including introducing the transferability of land rights and safety. For example, it requires that infant formula manufac-
reforming land acquisition and compensation practices. is turers implement special good manufacturing practices and
action includes rolling out the recent policy decision to grant that they self-audit and report on those audits to local food
inde nite land use rights to farmers, to expand land registra- and drug authorities. It also prohibits contract manufacturing
tion, and to strengthen rural land markets. “41 by infant formula manufacturers.” 46
Legislating Towards Food Safety Among the most far reaching requirements are those re-
Food safety remains an ongoing concern, so in yet another lated to penalties. e Draft FSL increases penalties and li-
abilities signi cantly. Speci cally, the draft increases admin-
attempt to legislate its way to food safety, China released a istrative nes by agencies for FSL violations, the potential
new ve-year plan “to upgrade its food safety regulations in for civil compensatory and punitive damages in related liti-
June 2012. According to the o cial Xinhua News Agency, the gation, and the potential for criminal prosecution. Perhaps
government will revamp outdated rules, review and abolish more ominous is the pledge to strengthen the “link” between
contradicting or overlapping standards, and draft new codes food safety regulation and criminal penalties. e Draft FSL
by 2015. ere are currently more than 2,000 national food calls for “prompt” reporting of suspected food safety crimes
regulations and 2,900 industry-based regulations on the by CFDA and other administrative agencies to the Ministry
books, many of them overlapping or contradictory.”45 of Public Security (China’s police force) for immediate inves-
tigation. China has already cracked down on violators of food
According to the plan, “14 government departments, in- safety standards through the Criminal Code over the last sev-
cluding the ministries of health, science and technology, and eral years. e draft law increases the trend toward criminal
agriculture, will work to revamp safety standards, with prior- prosecution in this area.46
ity given to dairy products, infant food, meat, alcohol, veg-
etable oil, seasoning, health products, and food additives. “It
is an onerous task for the government to ensure food safety,”
because China’s food industry still su ers from “nonstandard
management and many hidden safety risks,” said a state-
ment released in June 2012 following a State Council execu-
tive meeting presided over by Premier Wen Jiabao. e State
Council vowed a “vigorous crackdown” on those who endan-
ger food safety. e government should “enhance supervision
by setting up an e cient mechanism that covers all links in
the food industry and a rigid food recall system for destroying
defective products,” the statement said. Moreover, the gov-
ernment will make “special e orts” to establish standards for
testing contaminants, food additives, microorganisms, and
pesticide and animal drugs. 45
In 2014, the National People’s Congress (NPC), released
a draft of the revised Food Safety Law (Draft FSL) for pub-
lic comment. Formerly called the Food Hygiene Law and
re-named Food Safety Law in 2009, which was also when
the government altered most of its content. e Draft FSL
“focuses on risk assessment and management. It requires in-
creased attention to government monitoring of speci c risks
(i.e., foodborne illnesses, illegal additives, and other forms
104
