votrechien - 8:52 pm on Feb 23, 2011 (gmt 0)
"Alibaba and the Forty..."
Following the Melamine-in-baby-milk-powder scam last year, the Chinese government "clamped down" on food standards. One or two CEOs were executed, and the wise avoided all Chinese processed foods for life.
This week we discover the Chinese milk-powder industry has found the addition of "hydrolysed leather" (think, caustic soda digested cow-hides) to milk powder is a fine replacement for Melamine.
A few bad apples?
A few bad apples in a country with 1.2 billion is a lot of bad apples. Guess what? Statistically there's bound to be 400% more bad apples in China than the U.S.
China is a developing country and you cant expect to do business in it the same way you do in the West. If you expect strict government regulation and a strong judicial system to protect you, you need to examine your strategies and knowledge in dealing with such countries.
Successful business in these countries is defined by trust and relationships more than anything else (for both the buyer and supplier). If you're not comfortable with this style of business, that's fine, but don't paint an entire country with a brush of evil.