Anti-Corruption Efforts March On
Caixin Century Weekly
July 7
Since the Communist Party of China (CPC) realized its once-in-a-decade leadership transition at the 18th CPC National Congress in November 2012, 33 officials ranked at the vice-ministerial level and above have been placed under investigation for grave violations of Party discipline and the law. In June this year alone, six high-level officials, including former Vice Chairman of the CPC Central Military Commission Xu Caihou, fell from grace.
Despite exposing an increasing number of corrupt officials, some in the media and public sphere are expressing doubts about the end-goals of this campaign. Some say that while it's necessary to fight against malpractice, such a campaign should not go so far as to damage the image of the Party and the government. Others hold that ongoing efforts to clean up politicians have hampered economic development.
Yet anti-corruption and reform are regarded as the top two priorities of the new leadership. As the wealth gap widens and social problems worsen, the anti-corruption campaign serves to equalize the social structure dominated by the so-called vested interest groups and win public support for reform.
The intensive anti-corruption campaign has rightfully shocked corrupt officials out of complacency and won public backing. However, a lot remains to be done in order to fully root out bribery, such as pushing forward institutional reforms.
Organic Food Myths
Caijing Magazine
July 14
Concerns over food safety have caused many Chinese families to opt for organic food. According to a 2011 survey of Chinese consumers conducted by the International Trade Center, a joint agency of the WTO and the UN, 60 percent of organic food consumers in China are members of the middle class, families with children and people with health concerns. Some 98 percent of them choose organic food out of fear for food safety problems.
Many believe organic food includes agricultural products grown without the use of fertilizers, pesticides or chemical additives, which shoppers equate with safety and health. However, scientific studies have not shown that organic food is necessarily safer than other products. The slogan "zero pollution," which is often used to advertise such food, is impossible to achieve as organically grown plants and animals are exposed to the environment and thus grow among China's air, soil and water pollution.
Yet this preference for organic agriculture has visibly bolstered the entire industry. By 2013, there had been 731 certificated organic food-producing companies, which registered an annual sales volume of 13.5 billion yuan ($2.2 billion). Though the industry is still in the preliminary stages of development, it promises huge growth potential. Shenzhen-based Essence Securities predicts that China's organic products will reach sales of 24.8 billion to 59.4 billion yuan ($4 billion to $9.6 billion) by 2015.
Fast Food Fears
Nanfang Daily
July 22
On July 20, local media unveiled the news that Shanghai Husi Food Co. Ltd. had supplied expired meat to fast-food titans including McDonald's and KFC. Food and drug authorities have suspended operations of the company, and ordered all its meat products to be taken off shelves. Husi is a member of the U.S.-based OSI Group, the world's largest meat and vegetable product processor. So how did this food safety incident happen at such a renowned transnational corporation here in China?
Most alarmingly, Husi knew about the use of expired meat and even created false claims about that knowledge. A detailed record of this from an internal e-mail suggested that the managers of the company were clearly aware they were violating the law. Secondly, though no evidence indicates that Husi's customers, including McDonald's, knew about the illegal conduct, it is doubtful that they were not informed before the media were involved. Last but not least, local regulators' neglect of their duty comes into question. How was Husi awarded a grade A on food safety, let alone able to pass the annual health inspection?
China is undergoing an unprecedented economic transition. Our trust in transnational corporations is based on the belief that they operate under strict oversight to survive fierce competition. Yet the truth is that we should not overestimate the ethical practices of any market entity. The question now is how authorities can establish effective regulatory systems and enforce business ethics in ensuring food safety at transnational food companies. |