I make this post from the airport in Shanghai.  I have been moving at light speed from firm to firm and from city to city.  All is coming along very nicely, and even better than I had hoped. 

I think if you come into this trip and part of the world with an open mind, throw out preconceived notions and biases,  and let yourself go, we have put together a business trip, course and experience for you that will allow you to return to the US a different and better person. 

More information and details to follow early spring quarter, after I return and work on finalizing the details.  Gotta run.  They just called for boarding.  Cheers!   - Professor Carr

Submitted By:  Jared Samarin

This morning’s New York Times was headlined by a topic that I believe to be a core necessity for the growth of market based economies, private property rights. The “China Moving to Approve Law That Protects Private Property“ article outlines in very brief terms the concept for a new policy that would allow for an increase to the rights of entrepreneurs and the middle class. The bill passed the annual parliament session on Friday March 16th and marks an historic change for both the Chinese government and the Chinese people. Legal protection of private property is a right often taken for granted in many parts of the world, but in China this as fresh and welcome as springtime sun.

The new policy addresses many of the concerns of past party leadership and leading scholars who have pointed out repeatedly that current economic policies have led to rampant corruption, a widening of the gap between elite and poor, and has severely taxed the environment. The hope is that this policy can induce better stewardship and create more entrepreneurial opportunities. A very important stipulation of the bill is that “The property of the state, the collective, the individual and other obligees is protected by law, and no units or individuals may infringe upon it”.  With little ambiguity this stipulates that the Chinese people, including the rural poor will finally have a legal right to what is “theirs”. This does not include real property however land is still the property of the state. This will protect the user of said properties though during the 70 years of lease that they have with the government. This landmark ruling should finally curb the illegal expropriation that has taken place for some time and the wrongful booting of people off of their land.

Traditional Socialist economies would never think of such policy, mainly because it takes from the collective and gives to an individual. Many leftist academics have bawked at the legislation that was originally introduced in 2002 and it has gone through a record eight reads at the National People’s Congress. The policy has endured many arrows but the time was finally right for some sort of ruling that protected the rights of the growing middle class, and in time hopefully the disenfranchised rural Chinese may finally be allowed to climb the ladder with such legislation. With that said I pose two major questions:

1.  Will this new policy fulfill its intended purpose by expanding the middle class and filling in the gap economic gap?

2.  Does this policy wholly abandon the ideals of Socialism as Leftist scholars are arguing, or has China already abandoned these ideals by becoming more market driven and welcoming foreign investment?

Submitted By: Lee Smith

Found on the China Daily website, the two articles that I present here (”No Room for Laxity When It Comes To Food Safety”) and here (”Safe For All Should Be The Recipe”),  are spreading wide controversy over China’s food safety issues. While reading them, there were some pretty interesting issues that were brought to my attention. Honestly, I cannot say that I am surprised by China’s issues with their food safety regulations and management. In both articles, the writers focus on China’s current problems with food safety and how they plan to deal with these issues in the future.

The major issues that have been brought forth are: contamination of food by unregulated pesticides, poor packaging and preservation, and finally infestation by parasites. One example of these issues includes a case of parasite-infested snails that sickened 87 people in a Hong Kong restaurant. Another example was industrial dye used on leather, floor polish & household chemicals was found to have been feed to hens and ducks to make their egg yolks red in color.

You might be asking why this issue is happening in an age of technology and science? According to the Chinese government, outdated production methods and laws, followed by the primitive mobility of transportation are primarily to blame. In addition to these setbacks, China currently has ten (10) different agencies regulating its food system each designated to specific areas of concentration. Overlap in these regulatory agencies often leads to grower, transporter and consumer needs not being met when problems do arise.

Fortunately China is taking action. According to China Daily many food safety authorities are beginning to enforce China’s food safety regulations and new round of food safety laws will be coming out this May of 2007.

One article makes reference to international companies being too lenient on Chinese food safety standards. This same article also mentions multinational companies such as KFC, Nestle, Kraft, Heinz and Haagen–Dazs have come under fire with China’s food safety guidelines with accusations of creating double standards for the quality of food they are producing. For example, KFC is being accused of reusing frying oil for up to 10 days and also adding a carcinogenic called magnesium trisilicate to prolong the oils’ life. (Note: this many not be a bad thing, it is just how the article presents it.)

Questions

As our food has to travel farther to get to our dinner table, how do countries as large as China and the US maintain safety?

In the end who is responsible for managing our food safety? In China it is the government, is the same true in the US?

What does the future hold for China’s food supply?

Professor Carr addendum:  Good post.  Critically important topic to both agriculture and business.  Click on this excellent China Law blog post and its discussion thread (”Don’t Drink the Water, Don’t Breathe the Air, Don’t Eat the Food, and Don’t Wear the Shoes“) that relates to Lee’s post.  Think of the business opportunities, across a variety of industries, that need to and will develop to help solve and clean up these food safety issues in China!!!