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    China Business
     Jun 14, 2007
Page 2 of 2
China's poisonous exports
By Drew Thompson

consumers as well as manufacturers. Without structural systems, including a strong legal system, insurance companies, industry associations and "consumer watchdogs" in place to support the government, the system lacks a powerful tool to ensure food and drug processors adhere to good manufacturing practices after the government inspector has left the premises.

US and Chinese response
In response to the contaminated wheat gluten crisis, the US Food



and Drug Administration (FDA) sent a team of investigators to China in early May to work with their Chinese counterparts at the Administration of Quality Supervision, Inspection and Quarantine to determine the source and extent of the problem.

The US FDA expressed appreciation for the Chinese government's cooperation, pointing out that the Chinese embassy issued travel visas for the team the same day they received the passports. [1] In addition to product recalls, the US government has also responded by increased inspections of pet food, vegetable protein products and animal feed imported from China. [2]

In the case of the intentionally adulterated pet feed ingredients that resulted in the deaths of animals, the Chinese authorities have treated it as a criminal case limited to two manufacturers, rather than a more fundamental problem with its food processing industry. Consistent with criminal detentions for previous contamination incidents, Chinese authorities detained the factory owners who shipped the adulterated products.

More broadly, however, the Chinese government has expressed its commitment to improve food safety and improve policies. In response to corruption at the SFDA as well as the relative ineffectiveness of the 10 government departments in eliminating food-related incidents, the government is considering the formation of a Food Safety Commission under the State Council, which would unify oversight in one body.

While Chinese and US investigations have focused on the specific wheat gluten case, the incident has sparked recognition that both countries need to work more closely to ensure the security of the food chain. Reassuringly, discussions toward that end are reportedly under way. Dr David Acheson, assistant commissioner for food protection at the FDA, stated in mid-May that "there are preliminary discussions about formalizing future cooperation with China on food safety and food defense issues, and those discussions will continue in the forthcoming weeks".

Conclusions
The Chinese government recognizes that it will have to take significant steps to improve food and drug safety. Their efforts should help reduce future embarrassing incidents that ultimately threaten to tarnish the "Made in China" brand and reduce Chinese manufacturers' competitiveness and market share. Yet the government's approach to improving food and drug safety must go beyond protestations of concern and new legislation to have a measurable, long-term affect.

"Increasing supervision" of the food-processing sector is not necessarily the most durable solution. Crackdowns and campaigns do not solve underlying problems and prevent crises from reoccurring. Small manufacturers that are shut down in one campaign can reopen in another neighborhood under another name, in effect driving the problem underground.

Likewise, creating unrealistic financial and administrative barriers for manufacturers to enter the market legitimately can drive processors into unregulated situations, making certification and traceability extremely challenging. Incentivizing processors to voluntarily comply with clear and reasonable regulations will be vital to ensure long-term food safety.

Developing non-governmental resources to support safe manufacturing practices in China should also be considered. In the United States, NGOs play a vital role in both policymaking and ensuring food and drug safety. For example, the Grocery Manufacturers Association-Food Products Association represents food processors in dialogues with regulators and provides education and training for processors to ensure that they have the ability to adhere to regulations and good manufacturing practices. Other organizations, such as the Partnership for Food Safety Education, work with companies and regulators to educate the public about safe food handling.

Improving production practices and traceability in China should also be prioritized. Future enforcement of regulations in the United States will likely require accurate country of origin labeling that processors and suppliers exporting to the United States will have to adhere to. In addition, there are existing production and tracing models, which can be adapted for use in China, such as HACCP (Hazard Analysis and Critical Control Point).

Finally, increased quality and safety will necessarily result in increased costs. A consequence of the widespread reporting on the effects of adulterated and counterfeit products from China will be calls from buyers seeking certification and testing from reliable laboratories, placing the burden on the supplier to prove the safety of its products. Responsible buyers, however, must recognize that added costs cannot be borne by the supplier alone and that some increased costs will ultimately have to be borne by the end user.

The US government, for its part, can continue to engage Chinese counterparts, providing technical support and maintaining a dialogue on global health governance issues within the structure of the two countries' strategic dialogues.

To improve food and drug safety, the United States can share its experiences in food safety with the Chinese government and encourage greater involvement of Chinese non-governmental groups in the sector. China and the United States can also jointly develop and fund innovative initiatives, such as training and awareness programs for small processors in China that would build their knowledge of international standards and increase their willingness to voluntarily follow safe production techniques, a role for which NGOs are well suited.

The recent spate of incidents has exposed how important it is for governments to work with producers, exporters and importers to develop systems to ensure food safety. The melamine-spiked wheat gluten incident highlights the importance of carrying out the concepts embodied in the Bioterrorism Preparedness and Response Act of 2002, which require the US FDA and Customs and Border Protection to jointly develop regulations pertaining to the registration of food and animal feed facilities, the prior notification of imported food shipments, the establishment and maintenance of records, and the administrative detention of suspect shipments.

Increasing the FDA's and USDA's budgets to enable them to increase detection capacity and efficiency would prove to be a valuable investment. With its experience inventorying North American food facilities and collecting data on imported foods and handling chains, the United States has valuable experience to share with counterparts in China.

The adulterated-wheat-gluten incident should underscore to officials in both countries that they share mutual interests in building systems to ensure safe food production and prevent agroterrorism while still providing open markets to each other's products.

Notes
1. US Food and Drug Administration, "Transcript of FDA Press Conference on Contaminated Animal Feed", May 10, 2007.
2. Ibid.

(This article first appeared in The Jamestown Foundation. Used with permission.)

(Copyright 2007 The Jamestown Foundation.)

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