Tainted Milk Incident Costs China Over US$14.6 Billion

The long term loss for ‘Made in China’ products is immeasurable

Central News Agency Created: May 20, 2009 Last Updated: May 20, 2009
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Zheng Shuzhen (L) holds a portrait of her deceased grand-daughter Zhou Mengxin outside the Complaints Department of the Ministry of Health in Beijing, claiming the child's death from tainted milk has never been dealt with appropriately by their local government in Zhoukou in Henan province. (Frederic J. Brown/AFP/Getty Images)

Tainted Products from China
TAIPEI—Zhang Gang, chief engineer of China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) said that last year’s tainted milk incident has cost China at least 100 billion yuan (approximated US$14.6 billion ) and seriously damaged the reputation of China’s products.

Hong Kong’s Ta Kung Pao reported Zhang’s speech on “Preserving the Quality and Safety of Foods and Promoting the Healthy Development of Industries” at China’s Seventh Summit Forum for the Food Exposition and Industry in Luohe City, Henan Province.

Zhang summarized three impacts from the incident:

—First, it seriously impacted public safety, especially the health of infants. According to the statistics, more than 20 million children were taken to hospitals, including 30,000 confirmed cases and 6 deaths.

—Second, it caused an “immeasurable” impact on China’s economy. According to incomplete statistics, after the tainted milk incident happened, 128 countries suspended the import of Chinese dairy products. Both the domestic and export losses totaled over 100 billion yuan.

—Lastly, was the damage caused to the reputation of “Made in China” products. Many products made in China, related or unrelated to the dairy industry, are now difficult to sell overseas, and even domestically. In addition to the financial crisis, this has made things even more difficult.

Zhang said although the tainted milk incident has come to an end, the authorities haven’t done a systematic and in-depth investigation and analysis on the circumstances, such as the cause of the incident, the subjective and objective conditions, and how to prevent it, and so on.

Read this article in Chinese.



 

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