China seems to be responding in a number of ways (see, e.g., virtually everyday’s Wall Street Journal articles re: how).

Remember, too, that they DID execute the head of their FDA for some of these problems. Perhaps this specific step is mere window dressing, but the reality is that the US and its population would likely not have the guts to take such a step in their own political backyard.

For the most part China seems to “get” that the long term ramifications of this could be severe for them and their economy, and they need to hop on it — Beijing in particular.

Whether and how effectively Beijing can control the provinces and the firms therein on this development, well, that’s a whole different story and set of issues. Time will tell.