What's in the News

My interpretation of the restriction against importing milk powder to the mainland includes the article's mention that prices were rising in HK, which could be a problem for a lot of locals there, who can barely pay rent. Considering the economic benefit to HK retailers because of individuals, not dealers, who cross the border from mainland to shop in HK for milk powder, it seems that the incoming money could be a good thing and should be encouraged. Still important to consider that in the immediate sense, it might actually be causing deprivation for monetarily poor locals in HK.

However, when you consider the totality of the melamine scandal in China, USA, New Zealand, etc., in the context of obvious control mechanisms in those countries and the EU to prevent people from drinking the healthiest, freshest, safest varieties of milk and milk products, I really wonder if the restriction against importing healthier milk powder to the mainland is not only part of a trading agenda, but also part of a health agenda.

For example, Nestle, a huge Swiss food corp., will not allow importation of its Swiss milk powder to North America, and it was Nestle who was at the center of the melamine scandal in the USA that broke in 2009, leading to the immediate change in the FDA's re-classification of melamine as a toxin with zero safe levels, to allowing enough that a person my size/weight can "safely" consume 5 GRAMS (table spoon) per day. That regulatory change was made without public comment or testing, etc. I saw it as an edict from Nestle, your interpretation may vary.

No, the limitation (I beleive) is on stuff that is directly imported to HK and TO BE SOLD THERE. There are endless companies and supplies of stuff imported to the mainland. Its just that those products have different ingredients. Folks are willing to pay a premium for made in/for [insert western country here] as opposed to made FOR China.

There isn't any shortage of baby powder. Chinese gov't has always restricted imports of foreign made products. The limit to 2 cans was because people were trucking it in by the truckload then selling off most of it. It was not for their personal use.

This allows the people who really want it can only get a limited number all for themselves. Remember, usually they go in as a group, each buying two tins. That could last 1 baby for months

And the profiteerers are screwed.

and the people who were depending on the profiteers because they don't have the money or freedom to go to Hong Kong

Yeah, that makes sense, DD. Goes along with the general import policies of the PRC, but raises the question of why not allow imports and then tax them to raise revenue, especially if this is an obvious health benefit item to growing babies.

I guess it was just time for a crack down on a hot item. The only question I still have is whether or not this is an HK policy as indicated by the article, or a PRC policy, or is there a difference?

I regretfully forgot if it was mentioned in the papers. I'll check later, but I think its a PRC issue but also supported by HK authorities. I don't mean like of course they would, they are part of China, I mean they are dilegently working on this.

As for the people who were depending on the profiteers, there'e plenty of good safe stuff on this side of the fence. Its cheaper to go over there than depend on the Black Market. And its also easy since Chinese are free to travel to HK. The travel documents are simple, quick and inexpensive. The woman has anywhere from 6 months to about a year from the time she knows she's pregnant to the time she needs the stuff for her kid. If she can't go, hubby and family can repeatedly

Plenty of time to git over der, pa'dner

The rules and penalties on this are from the HK side.  As far as I can tell, if you are brave/foolish enough to risk the huge penalties and try bring a 3rd can across from HK with you and you can get it past the point where you hand in your HK exit card, Chinese customs won't treat it any differently than any other food purchased in HK.

I was in HK a couple of weeks back and it definitely is a penalty to EXIT HK with more than 1.8 KG of baby formula powder.  Mainland families don't trust mainland milk/formula producers and also figure that Hong Kong has either no, or fewer problems with food quality.  Hence there must have been many a tourist who came down and loaded up with formula for family use or to sell to offset the price of the trip.  There were signs in the metro with warnings in English and Chinese.

Now there's this:  http://www.guardian.co.uk/money/2013/apr/08/baby-milk-powder-rationing-supermarkets?INTCMP=ILCNETTXT3487

Retailers have been asked to ration sales of baby milk powder by the manufacturer of Britain's two most popular brands after evidence that the products are being bought in bulk for "unofficial export" to China, where demand is high for foreign-made milk.

Danone, which makes Aptamil and Cow & Gate – the market leaders in the UK – has asked supermarkets and chemists to limit purchases to just two 900g tins per purchase. Asda, Sainsbury's, Tesco and Morrisons have already agreed to limit purchases to two units per customer and more retailers are expected to follow suit. {...}

One more news story like that and the panic buying will go world wide.

Think a story can't trigger a shortage - think again.
http://en.wikipedia.org/wiki/Talk%3AJohnny_Carson/Archive_1#what_about_this_toilet_paper_shortage.3F

Well I just read that China has signed a Free Trade Agreement with Iceland. I'm expecting a huge shift in the battle for economic supremacy because of this. Once you go over the North Pole (excuse me Santa) and through Russia, they are not that far apart. Only about 8,000 kms. Or about a million by sea


 

I mean what are they going to do, exchange rice for lava rocks?

I just read all about Danone on wikipedia. They own everything

Danone?  http://www.youtube.com/watch?v=-mYoEpVXFbs

I just read all about Danone on wikipedia. They own everything

Except in China, where most of it was stolen by a "joint venture partner".
http://en.wikipedia.org/wiki/Wahaha_Joint_Venture_Company

Quote from: kitano on April 16, 2013, 06:46:23 AM

I just read all about Danone on wikipedia. They own everything

Except in China, where most of it was stolen by a "joint venture partner".
http://en.wikipedia.org/wiki/Wahaha_Joint_Venture_Company

I read that wiki, there was a really interesting thing that they didn't make much of on there about them falling out that one of the early disagreements was the fact that Danone also had controlling stakes in Guangzhou and Shanghai's biggest bottled water companies!

Stuff of legends. Arrogant French company tries to take over in China but lose out to a Chinese comrade.

The life story of Zong Qinghou is a model of how to succeed in China by ... being Chinese!

http://en.wikipedia.org/wiki/Zong_Qinghou

I read once that he draws something like RMB20 per day to cover his expenses, including meals. May, or may not, be true.