Page 112 - 2016_WhitePaper_web
P. 112
6 White Paper on the Business Environment in China
In other words, the situation is far from ideal in absolute terms China, the Wall Street Journal quoted Beijing-based attorney
regardless of impressive relative gains made in recent years. Lester Ross as suggesting that “one of the biggest issues is the
drive to make a buck at any cost [… that] some companies see
Another issue seems to be enforcement of policies currently that by using additives, they can cut overhead costs or boost
on the books. In August of 2012, a series of “inspections” was profit margins, and they merely aren’t thinking about the affects
announced which intended, according to NPC Standing Com- the additives will have on consumers.” Mr. Ross furthermore at-
mittee Chair Wu Bangguo, to “find out the prominent issues tributes “too many bureaucracies handling food safety” as an
that hamper China’s rural reform and development and provid- additional source of problems.13
ing suggestions to promote the agricultural modernization.”10
The same report notes that “sanitation and contamination
At the time, China Daily reported that the new round of issues permeated the food manufacturing and processing in the
inspections—focusing on “the development of modern agricul- US in the late-19th century”, observing that it was not until the
ture, grain safety and the protection of farmland”—were the publication of The Jungle, “a book that unveiled the horrific
eighth-such carried out since 2003.10 The fact that the inspec- standards of meat-packing plants of Chicago, that the US began
tions were carried out by officials dispatched from Beijing, com- to wake up to its food safety problems.”13
bined with follow-up comments from another NPC Standing
Committee about the “[promotion of ] better implementation Regardless of cause and precedent, the at least one effect of
of the law as it provides firm legal safeguard for the develop- ongoing safety issues is thoroughly predictable:
ment of agriculture and the improvement of living standards in
rural areas”10, suggests that the inspections also aimed to curtail “It’s clear that the credibility of the system will suffer,”
local-level corruption in rural areas.
said Peter K. Ben Embarek, the World Health Organi-
Inspections aside, the same NPC Standing Committee
member also pointed out that “China [is] facing a series of chal- zation’s food safety official. “The (Chinese) consumer
lenges in rural development, including weak grain productivity,
lack of a long-term system for raising the farmers’ income, and will continue to lose confidence in Chinese products
shortage of farmland and water resources”9—somewhat tem-
pering the optimistic National Bureau of Statistics figures listed and consumers abroad will equally lose confidence in
above and reported by China Daily the very same day.
Chinese products.”14
Another source of ongoing concern is China’s now-notori-
ous problems with food safety: A final challenge likely to play a greater role in the future
of the sector is consumer acceptance of genetically-modified
Since 2008, when six children died and 300,000 were foodstuffs.
sickened by melamine-tainted baby formula, the Chi-
nese government has enacted ever-more-strict policies In the past 30 years, China’s urban population has jumped to
to ensure food safety, including a directive last month about 700 million from under 200 million, driving up demand
from the Supreme Court calling for the death penalty for meat and staples such as rice that scientists say only GMO
in cases where people die as a result of tainted foods. can satisfy.15
It hasn’t helped. If anything, China’s food scandals are “Winning acceptance for the more widespread use of
becoming increasingly frequent and bizarre.11 GMO,” observes Reuters, “may be a hard sell in a country
frequently in the grip of food scares.”15 Nevertheless, the State
The source of the above quote focused on tainted pork media are attempting exactly that. On a single day in November
served at a wedding in Hunan province; another incident— 2013, “Communist Party mouthpiece the People’s Daily
only two months later—involved 11 deaths in Xinjiang from rejected rumors that eating GMO food could alter human
poisonous vinegar. According to that report, “…those are just DNA, and news agency Xinhua ran an investigation last week
the latest. They follow the meat that glowed in the dark; the debunking tales that GMO corn consumption had reduced
tainted buns; the exploding watermelons; the 40 tons of bean sperm counts.”15
sprouts containing antibiotics and carcinogens; the rice con-
taminated with heavy metals; the mushrooms imbued with At least some stakeholders remain unimpressed by the pub-
bleach; and the pork so dosed with banned stimulants that ath- lic relations effort: “Scientists have been at pains to show that
letes attending an international meet in Shanghai had to be told GMO is already part of the food chain: China is the world’s
which restaurants were safe to eat at.”12 top importer of GMO soybeans, used as feed, and also imports
GMO corn from the United States and elsewhere,” all factors
In examining the cause of pervasive food safety issues in which may render the public debate moot.15
112 Foreign investment in agriculture has historically (and un-
surprisingly) grown alongside reform in the sector. The Min-
istry of Commerce (MOFCOM) reported that 2006 saw 458
foreign-invested projects (an increase of 5.8 percent over 2005)
with a total utilized investment of $240 million (an increase of
In other words, the situation is far from ideal in absolute terms China, the Wall Street Journal quoted Beijing-based attorney
regardless of impressive relative gains made in recent years. Lester Ross as suggesting that “one of the biggest issues is the
drive to make a buck at any cost [… that] some companies see
Another issue seems to be enforcement of policies currently that by using additives, they can cut overhead costs or boost
on the books. In August of 2012, a series of “inspections” was profit margins, and they merely aren’t thinking about the affects
announced which intended, according to NPC Standing Com- the additives will have on consumers.” Mr. Ross furthermore at-
mittee Chair Wu Bangguo, to “find out the prominent issues tributes “too many bureaucracies handling food safety” as an
that hamper China’s rural reform and development and provid- additional source of problems.13
ing suggestions to promote the agricultural modernization.”10
The same report notes that “sanitation and contamination
At the time, China Daily reported that the new round of issues permeated the food manufacturing and processing in the
inspections—focusing on “the development of modern agricul- US in the late-19th century”, observing that it was not until the
ture, grain safety and the protection of farmland”—were the publication of The Jungle, “a book that unveiled the horrific
eighth-such carried out since 2003.10 The fact that the inspec- standards of meat-packing plants of Chicago, that the US began
tions were carried out by officials dispatched from Beijing, com- to wake up to its food safety problems.”13
bined with follow-up comments from another NPC Standing
Committee about the “[promotion of ] better implementation Regardless of cause and precedent, the at least one effect of
of the law as it provides firm legal safeguard for the develop- ongoing safety issues is thoroughly predictable:
ment of agriculture and the improvement of living standards in
rural areas”10, suggests that the inspections also aimed to curtail “It’s clear that the credibility of the system will suffer,”
local-level corruption in rural areas.
said Peter K. Ben Embarek, the World Health Organi-
Inspections aside, the same NPC Standing Committee
member also pointed out that “China [is] facing a series of chal- zation’s food safety official. “The (Chinese) consumer
lenges in rural development, including weak grain productivity,
lack of a long-term system for raising the farmers’ income, and will continue to lose confidence in Chinese products
shortage of farmland and water resources”9—somewhat tem-
pering the optimistic National Bureau of Statistics figures listed and consumers abroad will equally lose confidence in
above and reported by China Daily the very same day.
Chinese products.”14
Another source of ongoing concern is China’s now-notori-
ous problems with food safety: A final challenge likely to play a greater role in the future
of the sector is consumer acceptance of genetically-modified
Since 2008, when six children died and 300,000 were foodstuffs.
sickened by melamine-tainted baby formula, the Chi-
nese government has enacted ever-more-strict policies In the past 30 years, China’s urban population has jumped to
to ensure food safety, including a directive last month about 700 million from under 200 million, driving up demand
from the Supreme Court calling for the death penalty for meat and staples such as rice that scientists say only GMO
in cases where people die as a result of tainted foods. can satisfy.15
It hasn’t helped. If anything, China’s food scandals are “Winning acceptance for the more widespread use of
becoming increasingly frequent and bizarre.11 GMO,” observes Reuters, “may be a hard sell in a country
frequently in the grip of food scares.”15 Nevertheless, the State
The source of the above quote focused on tainted pork media are attempting exactly that. On a single day in November
served at a wedding in Hunan province; another incident— 2013, “Communist Party mouthpiece the People’s Daily
only two months later—involved 11 deaths in Xinjiang from rejected rumors that eating GMO food could alter human
poisonous vinegar. According to that report, “…those are just DNA, and news agency Xinhua ran an investigation last week
the latest. They follow the meat that glowed in the dark; the debunking tales that GMO corn consumption had reduced
tainted buns; the exploding watermelons; the 40 tons of bean sperm counts.”15
sprouts containing antibiotics and carcinogens; the rice con-
taminated with heavy metals; the mushrooms imbued with At least some stakeholders remain unimpressed by the pub-
bleach; and the pork so dosed with banned stimulants that ath- lic relations effort: “Scientists have been at pains to show that
letes attending an international meet in Shanghai had to be told GMO is already part of the food chain: China is the world’s
which restaurants were safe to eat at.”12 top importer of GMO soybeans, used as feed, and also imports
GMO corn from the United States and elsewhere,” all factors
In examining the cause of pervasive food safety issues in which may render the public debate moot.15
112 Foreign investment in agriculture has historically (and un-
surprisingly) grown alongside reform in the sector. The Min-
istry of Commerce (MOFCOM) reported that 2006 saw 458
foreign-invested projects (an increase of 5.8 percent over 2005)
with a total utilized investment of $240 million (an increase of
