Toxic recalls

China has been a repeat violator on these accounts, from its government8217;s refusal to admit to the SARS epidemic, to its industry8217;s more recent delays in disclosing toxicity in paint used for toy exports. The latest scandal comes upon the discovery of melamine in milk products, primarily powder for infants. Melamine is an industrial chemical used to fix the protein strength in adulterated milk. It, as is now becoming well known, damages the kidney, and in extreme cases even leads to organ failure. It is also becoming evident that milk producers had information on the adulteration for months before they finally ordered a massive recall. The point is, China, a country substantially globalised and a leading source for manufactured and food products for much of the world, has a pathetic record on information disclosure.

In the absence of visible reform in China, countries will be tempted to institute greater checks on Chinese imports. This is a wake-up call for China. Its ambitions of creating millions of jobs every year rest upon the expansion of manufacturing, and for that keeping China8217;s comparative price advantage. Toxic recalls will certainly not help.