Archive for the ‘Capitalism & Corporations’ Category

“International Humiliation” on Food Safety May Be in China’s Best Interest

Friday, July 13th, 2007

– the author of the following, Wang Feng, is a Beijing-based journalist.

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I awoke this morning to the headline in the Chinese newspapers: “China bans diethylene glycol in toothpaste.” My first reaction: Finally, the bureaucrats have given in to international pressure. It seems China can use all the international humiliation it can get.

Diethylene glycol, a toxic industrial solvent, is often used in China to replace the similar but more expensive glycerine, a harmless food additive. Chinese-made toothpaste containing diethylene glycol has been discovered and recalled all over the world. But until this morning, Chinese officials had insisted that a small amount of diethylene glycol in toothpaste was harmless to the human body. Never mind that a Chinese shipment of it was blamed for the deaths of over 100 Panamanians after a drug maker there put it into a cough syrup, believing it was glycerine. Chinese officials maintained that it was a safe additive in toothpaste even in the very statement that later banned such a use: “There is no known case of direct human poisoning by toothpaste with diethylene glycol,” the statement said. Yeah, right. Pardon me if I would still rather do without it in mine.

I am happy with the outcome now – that is, if China can really enforce this ban effectively. Good luck with that. Our government has, under mounting U.S. pressure, vowed more than a few times to root out pirated DVDs of Hollywood blockbusters. But guess how much I paid for a copy of “Spiderman III” at my neighborhood store?

The toothpaste saga is a textbook case of a public health and food safety crisis that wouldn’t have even raised eyebrows inside China, much less been addressed and resolved on a national level, if it hadn’t escalated into an international scandal. And the toothpaste issue is a relatively minor case in a string of serious crises that have continuously tarnished the “Made in China” label. Among those are the recent American pet food scare and the Panamanian cough syrup deaths (although I’ve never quite figured out why the deaths of 17 U.S. cats got so much more worldwide news coverage than the deaths of more than 100 Panamanians.)

Even when domestic scandals do break, they aren’t usually handled in a way that instills public confidence. When a fake medicine killed dozens of patients in China a year ago, it triggered a national outcry and a subsequent government investigation. In the end, officials announced only that they had fined the factory, and suspended its license “pending further inspection and improvement.” The public was told nothing else — why the Chinese FDA had approved the drug in the first place, or why regulators hadn’t found the problem until the patients were dying in agony.

The final revelation came earlier this year when Zheng Xiaoyu, then head of the Chinese FDA, was sacked, investigated for corruption and swiftly sentenced to death. He lost his appeal six weeks later and was executed this past Monday. In the media storm surrounding Zheng’s downfall, we learned that the man had almost single-handedly approved tens of thousands of drug licenses without following due procedure, pocketing millions in bribes from pharmaceutical firms. His corrupt administration was also blamed for some of the international crises, including the Panamanian poisoning case. Zheng’s execution was no surprise to observers. Many believe he was made into a scapegoat, a convenient target for focusing public wrath.

So, transparency at last? Not according to Zheng’s lawyers. They tried hard to spare his life, citing the amount of money involved (much less in comparison to many other convicted corrupt officials sentenced only to life in prison), and his cooperation with investigators. But Zheng’s trial was also one of the most secretive and least publicized in recent years. The government never released the details of its case against him, and no one knew which companies had bribed him until his lawyers defied a government gag order and posted court documents on the Internet. They did so in a desperate protest against the shroud of secrecy under which the case was handled.

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Crime and Pusnishment in Beijing

Tuesday, July 10th, 2007

Grim and stern as an old friend would say. The People’s Daily online just carried a story announcing that Zheng Xiaoyu, former director of China’s State Food and Drug Administration (see here for story on his crimes) ), was executed this morning. I thought Zheng’s appeal of the death sentence handed down on May 29th was still pending but the story also noted that it had been rejected on June 22nd. I guess that it still seemed likely he would receive some sort of last minute reprieve, given how senior he was and the fact that his deputy was just given a suspended death sentence, which usually means effective life imprisonment. I don’t know why I was even a little surprised, though. As we observed earlier, Zheng’s timing was awful if he was hoping for a pardon. With the current international hullabaloo about safety regulation in China there was no way he was going to be let off the hook. Will his execution make a difference? Hard to say. Certainly it’s got to have some impact in the short term, but memories fade and the allure of stacks of those crisp, roseblush 100 renminbi bills is strong.

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Now it’s Fake Water

Tuesday, July 10th, 2007

– Before China learns that there has to be a resonable balance between profits and people, a lot of bad stuff is going to happen.

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This morning, I heard the news that half of Beijing’s bottled water is counterfeit. I was horrified. It seems that illegal factories fill the used plastic bottles from the tap or with perfunctorily filtered water. The bottle tops and tape that they use to seal the bottle look identical to the genuine ones. The bottles aren’t sterilized and the number of mold fungi and e. coli bacteria that have been found in such water can easily make drinkers sick. An industry report quoted by Beijing Times calculates that more than 100 million bottles of such water were sold last year. The profit derived from these illegal sales exceeded 1 billion RMB, or about $12 million.

As a Chinese, I am used to reading about dangerous fakes. But this case really enraged me. This is water that many of us drink every day, after all. And the whole reason people pay extra for bottled water is for the quality—and safety. The Beijing Times did a story a couple of days ago that revealed the illegal business has been going on for five years. One unlicensed water bottler told the newspaper: “I filter the tap water before filling the bottle because I am a moral person and I don’t want to get people sick.”

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FDA Scrutiny Scant In India, China as Drugs Pour Into U.S.

Friday, July 6th, 2007

Broad Overseas Checks Called Too Costly

India and China, countries where the Food and Drug Administration rarely conducts quality-control inspections, have become major suppliers of low-cost drugs and drug ingredients to American consumers. Analysts say their products are becoming pervasive in the generic and over-the-counter marketplace.

Over the past seven years, amid explosive growth in imports from India and China, the FDA conducted only about 200 inspections of plants in those countries, and a few were the kind that U.S. firms face regularly to ensure that the drugs they make are of high quality.

The agency, which is responsible for ensuring the safety of drugs for Americans wherever they are manufactured, made 1,222 of these quality-assurance inspections in the United States last year. In India, which has more plants making drugs and drug ingredients for American consumers than any other foreign nation, it conducted a handful.

Companies based in India were bit players in the American drug market 10 years ago, selling just eight generic drugs here. Today, almost 350 varieties and strengths of antidepressants, heart medicines, antibiotics and other drugs purchased by American consumers are made by Indian manufacturers.

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F.D.A. Tracked Poisoned Drugs, but Trail Went Cold in China

Friday, July 6th, 2007

After a drug ingredient from China killed dozens of Haitian children a decade ago, a senior American health official sent a cable to her investigators: find out who made the poisonous ingredient and why a state-owned company in China exported it as safe, pharmaceutical-grade glycerin.

The Chinese were of little help. Requests to find the manufacturer were ignored. Business records were withheld or destroyed.

The Americans had reason for alarm. “The U.S. imports a lot of Chinese glycerin and it is used in ingested products such as toothpaste,” Mary K. Pendergast, then deputy commissioner for the Food and Drug Administration, wrote on Oct. 27, 1997. Learning how diethylene glycol, a syrupy poison used in some antifreeze, ended up in Haitian fever medicine might “prevent this tragedy from happening again,” she wrote.

The F.D.A.’s mission ultimately failed. By the time an F.D.A. agent visited the suspected manufacturer, the plant was shut down and Chinese companies said they bore no responsibility for the mass poisoning.

Ten years later it happened again, this time in Panama. Chinese-made diethylene glycol, masquerading as its more expensive chemical cousin glycerin, was mixed into medicine, killing at least 100 people there last year. And recently, Chinese toothpaste containing diethylene glycol was found in the United States and seven other countries, prompting tens of thousands of tubes to be recalled.

The F.D.A.’s efforts to investigate the Haiti poisonings, documented in internal F.D.A. memorandums obtained by The New York Times, demonstrate not only the intransigence of Chinese officials, but also the same regulatory failings that allowed a virtually identical poisoning to occur 10 years later. The cases further illustrate what happens when nations fail to police the global pipeline of pharmaceutical ingredients.

In Haiti and Panama, the poison was traced to Chinese chemical companies not certified to make pharmaceutical ingredients. State-owned exporters then shipped the toxic syrup to European traders, who resold it without identifying the previous owner — an attempt to keep buyers from bypassing them on future orders.

As a result, most of the buyers did not know that the ingredient came from China, known for producing counterfeit products, nor did they show much interest in finding out.

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– This article is from the NY Times and they insist that folks have an ID and a PW in order to read their stuff. You can get these for free just by signing up. However, recently, a friend of mine suggested the website bugmenot.com :arrow: as an alternative to having to do these annoying sign ups. Check it out. Thx Bruce S. for the tip.

As More Toys Are Recalled, Trail Ends in China

Friday, July 6th, 2007

WASHINGTON, June 18 — China manufactured every one of the 24 kinds of toys recalled for safety reasons in the United States so far this year, including the enormously popular Thomas & Friends wooden train sets, a record that is causing alarm among consumer advocates, parents and regulators.

The latest recall, announced last week, involves 1.5 million Thomas & Friends trains and rail components — about 4 percent of all those sold in the United States over the last two years by RC2 Corporation of Oak Brook, Ill. The toys were coated at a factory in China with lead paint, which can damage brain cells, especially in children.

Just in the last month, a ghoulish fake eyeball toy made in China was recalled after it was found to be filled with kerosene. Sets of toy drums and a toy bear were also recalled because of lead paint, and an infant wrist rattle was recalled because of a choking hazard.

Over all, the number of products made in China that are being recalled in the United States by the federal Consumer Product Safety Commission has doubled in the last five years, driving the total number of recalls in the country to 467 last year, an annual record.

It also means that China today is responsible for about 60 percent of all product recalls, compared with 36 percent in 2000.

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– This article is from the NY Times and they insist that folks have an ID and a PW in order to read their stuff. You can get these for free just by signing up. However, recently, a friend of mine suggested the website bugmenot.com :arrow: as an alternative to having to do these annoying sign ups. Check it out. Thx Bruce S. for the tip.

Blackwater Heavies Sue Families of Slain Employees for $10 Million in Brutal Attempt to Suppress Their Story

Wednesday, June 13th, 2007

– I know a lot of people still have strong doubts about claims that corporations have become so powerful in America that they are deeply influencing how this country is run. Here’s an article about how one company is using its financial clout and connections to protect its interests – to the detriment of the American people.

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The following article is by the lawyers representing the families of four American contractors who worked for Blackwater and were killed in Fallujah. After Blackwater refused to share information about why they were killed, the families were told they would have to sue Blackwater to find out. Now Blackwater is trying to sue them for $10 million to keep them quiet.

Raleigh, NC — The families of four American security contractors who were burned, beaten, dragged through the streets of Fallujah and their decapitated bodies hung from a bridge over the Euphrates River on March 31, 2004, are reaching out to the American public to help protect themselves against the very company their loved ones were serving when killed, Blackwater Security Consulting. After Blackwater lost a series of appeals all the away to the U.S. Supreme Court, Blackwater has now changed its tactics and is suing the dead men’s estates for $10 million to silence the families and keep them out of court.

Following these gruesome deaths which were broadcast on worldwide television, the surviving family members looked to Blackwater for answers as to how and why their loved ones died. Blackwater not only refused to give the grieving families any information, but also callously stated that they would need to sue Blackwater to get it. Left with no alternative, in January 2005, the families filed suit against Blackwater, which is owned by the wealthy and politically-connected Erik Prince.

Blackwater quickly adapted its battlefield tactics to the courtroom. It initially hired Fred F. Fielding, who is currently counsel to the President of the United States. It then hired Joseph E. Schmitz as its in-house counsel, who was formerly the Inspector General at the Pentagon. More recently, Blackwater employed Kenneth Starr, famed prosecutor in the Bill Clinton and Monica Lewinsky scandal, to oppose the families. To add additional muscle, Blackwater hired Cofer Black, who was the Director of the CIA Counter- Terrorist Center.

After filing its suit against the dead men’s estates, Blackwater demanded that its claim and the families’ existing lawsuit be handled in a private arbitration. By suing the families in arbitration, Blackwater has attempted to move the examination of their wrongful conduct outside of the eye of the public and away from a jury. This comes at the same time when Congress is investigating Blackwater.

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Chinese gangs ‘behind fake drugs’

Thursday, June 7th, 2007

– To me, it’s irrelevant that these gangs are Chinese.   What’s relevant is that this is such a strong and clear case of what’s wrong when anyone; be it individual, gang, corporation or nation puts profits above people.   Until we mature to see that all of humanity is a ‘we’ and not an ‘us against them’ scenario, we will use and abuse each other this way.  We’re a pretty sad case so far.

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Trans-national ethnic Chinese gangs are behind the growing trade in counterfeit anti-malarial drugs in South East Asia, the BBC has been told.

John Newton, a senior investigator with Interpol, said counterfeits are now starting to appear in Africa too.

He said the gangs involved organised criminals working across national boundaries and faking the drugs on an industrial scale.

He described them as businessmen with a sophisticated network of conspirators.

In some cases, fake drugs operations are run alongside trade in fake credit cards, weapons and narcotics, he said.

Sophisticated fakes

The gangs are close-knit and hard to penetrate.

“The common denominator is that they are ethnic Chinese,” said Mr Newton, a senior investigator and specialist in counterfeiting with the international police force.

“By that, what I mean is that they may be Malaysians, they may be from the People’s Republic of China or Myanmar, the former Burma.

“Because they know each other, they’re very difficult to infiltrate. They have established networks in the various countries. They’re able to exchange and distribute the product. And that makes it very difficult for us to counter,” he said.

The fakes are increasingly sophisticated. That, plus the scale of production, suggests a large investment by the criminals.

International health officials warn that anti-malarial drugs are just the tip of the iceberg. There is also growing concern about fake antibiotics and fake anti-retrovirals used to treat HIV/Aids, and even fake versions of the drugs used to treat avian flu.

The profits are huge.

The UN said that within a few years, global sales of fake drugs could be worth $75bn a year.

To the original:

China Investigates Contaminated Toothpaste

Wednesday, May 30th, 2007

See also: 1 ➡, 2 ➡, 3 ➡, 4 ➡, & 5 ➡

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DANYANG, China, May 21 — Chinese authorities are investigating whether two companies from this coastal region exported tainted toothpaste as more contaminated product, including some made for children, has turned up in Latin America.

A team of government investigators arrived here Sunday afternoon and closed the factory of the Danyang City Success Household Chemical Company, a small building housing about 30 workers in a nearby village, according to villagers and one factory worker. The government also questioned the manager of another toothpaste maker, Goldcredit International Trading, which is in Wuxi, about an hour’s drive southeast of here.

No tainted toothpaste has been found in the United States, but a spokesman for the Food and Drug Administration said yesterday that the agency would be taking “a hard look” at whether to issue an import alert.

Authorities in the Dominican Republic said they seized 36,000 tubes of toothpaste suspected of containing diethylene glycol, an industrial solvent and prime ingredient in some antifreeze. Included were tubes of toothpaste marketed for children with bubble gum and strawberry flavors sold under the name of “Mr. Cool Junior.”

Toothpaste containing the toxic solvent was also found in Panama and Australia in the last week.

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– This article is from the NY Times and they insist that folks have an ID and a PW in order to read their stuff. You can get these for free just by signing up. However, recently, a friend of mine suggested the website bugmenot.com :arrow: as an alternative to having to do these annoying sign ups. Check it out. Thx Bruce S. for the tip.

Tainted Chinese Imports Common

Monday, May 21st, 2007

– Does it sound like I’m picking on China? Well, I don’t mean to. They just happen to be the biggest example on the planet of how badly wrong things can go for people when governments, corporations and cultures put profits above people.

– The US certainly has nothing to smirk about in this regard. Among a thousand other stories, I remember one in particular about our own rapacious Capitalism. After the FDA decided that the levels of tar and nicotine in American cigarettes were too high and thus unhealthy for smokers and forced them to lower the levels in this country, the tobacco companies simply took their high tar and nicotine versions over to the Philippines and other countries which, because of their naivety and immaturity, hadn’t yet passed laws to protect their own people and we sold the hell out of them there. Cancer deaths? No problem – just look at those great profits! And then there was the baby formula we sold into South America and the pesticides we sell worldwide.

Capitalism

– And besides China, India can’t be far behind. Where as China has decided to supply the world’s cravings for ultra-cheap junk of every description, India has focused more on high tech. But, there are stories lurking in the sub continent as well. I recall a story on TV within the last year about the ship-breaking industry India runs along its Eastern Coast in Alang. It wasn’t pretty.

– So, read here, below, what it all comes to when profits are placed before people in food production industries. And ask yourself what the purpose of governments should be. To provide happy sandboxes for profit oriented corporations to play in this world or to look out for the health and welfare of their people? Then consider that the US is the only advanced industrialized western nation without national healthcare in spite of the fact that we are the world’s wealthiest nation – and ask yourself what’s going on.

– Now, on to fun with China and what you might be eating:

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In Four Months, FDA Refused 298 Shipments

Dried apples preserved with a cancer-causing chemical.

Frozen catfish laden with banned antibiotics.

Scallops and sardines coated with putrefying bacteria.

Mushrooms laced with illegal pesticides.

These were among the 107 food imports from China that the Food and Drug Administration detained at U.S. ports just last month, agency documents reveal, along with more than 1,000 shipments of tainted Chinese dietary supplements, toxic Chinese cosmetics and counterfeit Chinese medicines.

For years, U.S. inspection records show, China has flooded the United States with foods unfit for human consumption. And for years, FDA inspectors have simply returned to Chinese importers the small portion of those products they caught — many of which turned up at U.S. borders again, making a second or third attempt at entry.

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– I’ve categorized this under Perfect Storm, Capitalism & Corporations and Culture – How not to do it because the preoccupation of Corporations for profit above all else is slowing mankind’s perceptions of the coming climatic dangers which contributes to the coming Perfect Storm. I’ve put it under Culture – How not to do it because cultures, like here in the US, which allow Capitalism and Corporations to free-run are cultures which are destructive to all of our futures.