If you are a newbie in the business, considering China as the source of your products is a good idea as most Chinese – made goods passed quality control and are affordable for distributors like you. Moreover, importing from China especially if you are from countries like Philippines, Malaysia or Thailand is made easy and do not cost much since shipping fees are slightly lower due to the geographical location however, taxes and customs fees varies from country to country.

Nevertheless, getting China products can be great opportunity for you in starting up a business for reasons like:

• Affordability
• Update
• Accessibility

Before you start importing from China, consider the following first so that you will have an idea what do you want to bring to your country as your merchandise.

• Nature of business

-          First and foremost before starting exportation of products from China, is knowing the nature of your business meaning if you are related to gadgets and technology, of course, you should export the same products from China and not dresses or food.

• Rapport with Suppliers

-           Another thing is that find a legit supplier with a considerate rate of high quality products. Since you are importing from China, your rapport with your suppliers is important as it is one of the most essential basis for professional and smooth transactions.

• Terms and Conditions

-          Before making a deal with possible supplies, review their terms and conditions regarding the checking out of the items including the shipment fees, taxes as well as insurances. If you are not in favor of their policy, then don’t push the deal however, if you are comfortable with the terms, you can continue with your deal as you please, just ensure that you have understood every term to avoid future conflicts.

• Your responsibilities

-          Importing from China or from other countries doesn’t mean that you are safe from responsibilities because as the importer, it is your responsibility to ensure and check that the imported goods have meet regulatory standards as approved by the regulatory board. In cases that the items you’ve imported failed to meet such standards, it can be a reason for a legal action against you. So, to prevent such events, play your part well.

• Forwarders and couriers

-          If you are new in the business, you may ask assistance from the customs office in selecting the best cargo forwarders to act as courier for your products. If you like, you can visit each offices and personally talk to the in – charge so that your queries will be answered directly. Having a reliable forwarder saves you a lot of time and trouble in tracking your cargo.

• Record Keeping

-          Just like in all businesses, keep the records of every transaction that you made from importing from China or anywhere else in the world so that you will have a legal proof that the transaction existed as well for your inventory and serves as your protection as well in cases of legalities.

Let us know your thought and experience in the comments.

According to latest research made in fourth quarter 2005, there are over 100 million Internet users in China. (China rank second just after U.S.) However, it just covers 7.9% of the population. More important is that 63% of these Internet users have performed online purchase. Over the past ten years, the growth rate of Internet user is 300%. We can expect that the online market in China have enormous potential.

First We will introduce different search engines in China and Hong Kong. (Hong Kong is always the gateway for your business to get into China, so we will get it in count). If you want to get your website be searched by 100 million Internet users, you’d better make submission to the following search engines. Most of these search engines welcome website in English too. It’s much better if you have your website in Chinese.

You may find difficulties in submission to some of the websites if you can’t read Chinese. You can try to email the web master about your site and leave them the related info, likes URL, site title, description, email address, etc. And you can submit to the Google & Yahoo directory first as some of the search engines will follow these two big players and crawled your website.

Baidu

Baidu is China’s Google. It is the most popular search engine in China. To submit website to Baidu, click below:
http://www.baidu.com/

Netease

Netease is another big search engine in China. Similar to Yahoo, it provides search engine and portals with different nformation/services.
http://www.163.com/

Sina

Sina.com is targeted to serve the Chinese community, include China, Taiwan, and Hong Kong. It has different portal for different areas. Sina.com provides large number of services; include directories, search engine, blog, chatroom, etc.
http://www.sina.com.cn/

Sohu

Sohu.com provides similar services as Sina.com. It has over 100 million registered users and has 250 million pages viewed daily.
http://www.sohu.com/

Timway

Timway is a Hong Kong based search engine. It also provides searching services to other Hong Kong’s portal.
http://www.timway.com.hk/

Google China/Hong Kong
http://www.google.cn/
http://www.google.com.hk/

Yahoo China/Hong Kong
http://chinese.yahoo.com/
http://www.yahoo.com.hk/

To do business in China, you need to work with some business partners. You can locate your buyers/suppliers thought the business directories. If you just send emails to ask for co-operation, you may suffer with Spam. You need to find reliable partners to work with and get rid of those fake partners. Here we list some famous business directories/portal, which can help you find your buyers/suppliers in China.

Alibaba

Famous Manufactures/Suppliers/Exporters/Importers Directories, you can find all your business needs here.
http://www.alibaba.com/

ChinaBig

It formed by China Union, PCCW Limited, R.H.Donnelley and INFOSPACE. It provides yellow page services and you can find different categorized company information, selling leads and buying leads.
http://www.chinabig.com/

Hong Kong Trade Development Council

TDC provides different business information, includes sourcing guide, business matching, market information and trade events. The sourcing guide covers China, Hong Kong and Taiwan and is one of the biggest sourcing guides in the region. tdctrade.com also provides news about Hong Kong business economy and China trade. It provides different languages support, include English, Chinese, Japanese, Deutsch, Francois, more.
http://www.tdctrade.com/

Directory of Chinese Suppliers

It’s an English directory listed over 250,000 Chinese suppliers in 30 categories.
http://www.chinese-suppliers-directory.com/

China Supplier Directory

It’s another directory, which lists China Suppliers. The directory is well organized. You can find details company information; include company background, address, and contacts.
http://www.tradebig.com/

China Business Directory

It is a business directory but with over 170,000 Chinese companies listed in English.
http://www.chinainfo.org/

Of course, doing business in China, you need to know their law, culture and working style first before getting in. You may find following website useful.

This HSBS webpage covers different topics in doing business in China. It talks about how to setup different type of business entities in China. It also has a section to discuss the taxation, include corporate tax, personal income tax and indirect taxes. You need to understand the legal system to run your company better. The HSBC webpage provides introduction on the advertising law and labour law.
http://www.hsbc.com.hk/hk/commercial/chinabiz/default.htm

In this China-Window.com website, you can find a lot of business culture and tips. You can know how to addressing Chinese. You can know how to handle business gift-giving issues in China. You can understand how important of business networks in China. You are advised to explore the website if you want to have a deep understanding on the business culture in China.
http://www.china-window.com/chinabusiness/doingbusinessinchina/index.shtml

This is an Extract from Guide to Doing Business in China. Though it is dated as November 2004, it is a good reference. It talks about foreign investment management, import/export, taxation, foreign exchange, finance and account, staff recruitment, etc.
http://www.tdctrade.com/chinaguide/

ChinaToday.com provides general information about China. It provides information about trade & investment, cities, entertainment, travel and weather. You can find all the basic information over there.
http://www.chinatoday.com/

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Isaac Chu -
About the Author:

Isaac Chu is Project Director of Evinco Solutions Limited. Evinco provides innovative business softwares, include emarketing web solutions, email marketing software, e-catalog publishing software, invoicing software, and electronic cheque writer. Visit: http://www.evinco.com.hk

So, you’ve looked at thousands of internet web-sites, promising you high profits with little investment. Everything, from bogus work at home opportunities to secret eBay wholesale supplier lists, that supposedly give you access to exclusive suppliers that eBay powersellers use. However, still no tangible results that lead to truly sustainable and self-sufficient business. The bottom line is that there is no such thing as easy money. No matter what type of business you run, you have to work and dedicate your time and efforts to grow and develop your business. Still some people think that quick cash does exsit, and indeed it does but only for those internet or telephone scammers who deceive people and steal their money. Everyday scams become more sophisticated and trustworthy, however they all have a common trend: if it sounds too good, it probably is. Form more information on scams and how to identify and avoid them, see our tutorial Avoiding Scam 101.

Import Source One is an educational resource that deals with small-business start up based upon importation of foreign products (electronics, decor items, furniture, etc.). Today our topic is Import from China. China is one of the most fast growing economies of the world, with good investment opportunities. Chinese product have established dominant presence in many countries of the world. And all familiar label “Made in China” can be seen everywhere and is hard to ignore. Some people might say that chinese products might have poor quality and if you are looking for top quality you should turn to the home market. Not exactly true. Yes, indeed, there are Chinese suppliers that focus on a short-term business and sacrifice quality for higher profit margins but, there are many that do not. More and more chinese factories focus on the long-term business relationship and implement effective quality control procedures and seek quality certifications recognized by Western world.

In today’s article we will discuss what do you need to know before you import and how to import from China. We assume you have a supplier in China. If you don’t, please read Finding a good Chinese supplier. If you have not decided what are you going to sell, here are a few popular selling items from RFQs of major trade networks:

7″ Portable DVD, MP3/Mp4 Players

Sony Memory Stick, SD, xD, CF card

Apple iPod Sony PSP

Microsoft XBOX, LCD, HDTV, Plasma TV

and the list goes on…

O.K. So you have decided what are you going to sell and found a Chinese trade company or factory that will supply your product. You have also conducted your research, you have verified that the company is legally registered and is not listed anywhere as a scam. But what’s next? How much should you order and how to get your order to your home or office? Most companies have high Minimum Order Quantities (M.O.Q), say a 100 or even 1000pcs. If each item costs 30$ it comes to 30,000$ for 1000 items. Ask yourself can you afford that? Do you have the necessary sales channels and strong marketing base to process this quantity and generate profit? Most people do not have that. That is why many comanies allow to order samples, 5-10pcs only! Samples are extremely important, not only they allow you to test the quality of the product but also run a test drive of how the product is going to sell in your local market or an auction web-site, eBay or Yahoo (it is highly recommended however to thoghroughly research the market before you make an order). Now you are ready to place an order, say for 10pcs, your supplier issues you a Proforma Invoice, which outlines the cost of the ordered goods, delivery method and all other applicable charges. So, how will you pay? The most common way is through bank wire transfer or T/T transfer. Many chinese suppliers also accept Letter of Credit (LC) but only for high quantity orders. If you want to pay with your credit card, most likely it is not going to happen as most of the chinese banks do not support this payment method or it is too expensive to process. Once your supplier receives your payment they will ship the goods to you by the method you have chosen, it could be either sea, land or air. You select your delivey method based on how urgently you need your goods, for the case of a sample order your supplier will probably use a courrier service like FedEx, DHL or EMS. We will discuss container (sea) and land (train, truck) in the our next tutorial.

For more information visit: http://importsource.co.nr/import.html

There is good news in the wind for environmentalists. Wind turbine capacity has been increasing and the unit cost of power generated by wind energy is expected to drop, much of which is credited to China’s efforts.

The World Wind Energy Association forecasts that by 2020, wind turbine total installed capacity will reach an estimated 1.5 million megawatts worldwide, accounting for 20% of global electricity consumption. This will represent a substantial jump in the role of wind energy in the next decade, where it represented just 1.5% of global electricity consumption in 2008.

Where news of environmental pollution is an issue of concern in China, it is also China that is set to take the lead in the global wind energy revolution, ahead of the United Kingdom or the United States, who have long been its strongest advocates.

It’s a paradox that in the West, proponents of the green movement protest against the very infrastructure that is needed to drive sustainable energy practices. There is a ‘not in my back yard’ mentality. This paradox is not seen in China. China will not only become a global leader in wind energy, but may be an important supplier to fast growing emerging Asian economies, such as Vietnam, Thailand and Indonesia, who themselves have limited development in the wind energy technology sector.

The Chinese government’s firm commitment

The Chinese government regards the development of wind energy as a key priority. At the end of 2008, China overtook India in having the highest installed capacity of wind energy in Asia with a total 12.2GW of total installed capacity versus India’s 9.6GW.

The Chinese wind power equipment manufacturing industry has been attracting the investment from many enterprises. With market capacity of wind power equipment forecasted to reach 32 billion US dollars by 2010, investing in China is important for many foreign enterprises wishing to take advantage of the substantial and rapid build up of wind energy in China.

In addition, overseas turbine companies have made substantial investments in China, in order to comply with an earlier government stipulation requiring at least 70 percent of components to be sourced domestically for use in Chinese wind energy projects.

In order to meet the demands of the growing market, domestic production and technology of wind turbines and components also had to step up. With this accelerated development of manufacturing, China is gearing up to meet both the domestic demands as well as preparing to supply components to the international market.

Key trends in China’s wind energy industry

1. Supply shortage for wind turbines and associated components predicted

The demand for wind turbines and related components in many countries is increasing. Together, the United States, the European Union and China are targeting to have installed capacity of about 400 to 500 gigawatts by 2020.

Only a number of specialised suppliers are able to produce key parts for higher capacity wind turbines however, and demand may overwhelm some suppliers, especially for those specialising in gearboxes and bearings. In addition, other industries also use similar wind turbine components for their equipment and machinery.

As an emerging technology, wind turbine designs are still evolving. Parts made are mostly customised and non-interchangeable, making replacement suppliers hard to find. Moreover, the advanced technology required to enter the wind turbine industry is a barrier for new entrants.

Currently, most Chinese wind turbines and components for higher-megawatt products are licensed or jointly developed with overseas players, whilst local manufacturers still lack the independent capacity to build higher wattage turbines. With fewer players supplying the higher-megawatt products, there are bottlenecks affecting the supply shortage for wind turbine related equipment, particularly with the government’s emphasis on higher wattage turbines.

Price volatility for raw materials, notably steel, copper and carbon, is a critical factor in some of the wind turbine parts. Steel is used in towers, gearboxes and rotors; copper used in generators and carbon in rotor blades. Any price volatility can result in bottlenecks in the supply chain.

2. More partnerships amongst wind turbine industry players

In order for foreign players to ease their market entry and secure consistent supplies and services, partnerships in the form of mutual agreements, joint ventures or acquisitions between market players; such as wind farm developers or operators, wind turbine manufacturers and wind turbine component manufacturers, will continue. Through such ventures, local players will in turn get to secure proprietary technology.

Examples include Shanghai Electric’s joint effort with German Aerodyn, and Zhejiang Windey’s partnership with Garrad Hassan and Partners Ltd (GH) from the United Kingdom.

3. Local technological advancement

Due to market regulation in China that favours locally made products, foreign players wanting to enter China need to work with local Chinese companies. This in turn, promotes technology transfer amongst Chinese companies and builds local expertise.

An example of this is Sinovel’s joint program with Austria Windtec. Sinovel is developing a three megawatt double feedback, variable shift and constant frequency wind turbine system, the first high-tech Chinese offshore wind turbine system, which will be installed in the first offshore wind farm, the Shanghai Donghai Bridge Wind Farm.

4. China as a major supply chain centre within wind energy industry

If current trends persist, China will become an important global supplier for the wind energy market, especially in key wind turbine components and services. High local demand, China’s strategic location to supply Asian markets with parts and equipments, coupled with development of local research and development skills may encourage a future role as a global wind energy hotspot for services and equipment.

China’s increasing ability to manufacture more affordable wind power equipment might even push South East Asia’s wind energy utilization, especially for small to medium scale projects. While the Chinese government is actively promoting the production of turbines with capacities of over two megawatts, Chinese suppliers are still catching up to the technology. For now, their strength will continue to be in small to medium scale wind energy projects, which are a good fit for South East Asia markets.

5. China wind energy suppliers go global

Chinese suppliers’ interest in European companies may be of strategic geographical importance in the long term.

Chinese market leader Goldwin has acquired majority share of German Vensys in order concentrate on the development of its direct drive wind turbine technology. After the acquisition of Vensys, Goldwind also bought the subsidiary companies that produced converters and variable propeller systems for Vensys, through Vensys in Germany.

For Goldwin, this ensures a local foothold in Europe with spin-off benefits both in Germany as well as in China. It has also absorbed a number of cross-border talent with management experience in the domestic and international markets from companies such as Shenzen

Huawei, Motorola, General Electric, the bearings industry SKF, Siemens and ABB.

China has been described as the world’s factory. In wind energy, the global environment would be the benefactor of its manufacturing prowess.

About the authors

Kim Khoo is Manager of Intelligence Services at Global Intelligence Alliance (GIA), while Saraswati Diah is an analyst at Global Intelligence Alliance, Singapore.

About Global Intelligence Alliance

Global Intelligence Alliance (GIA) www.globalintelligence.com  is a strategic market intelligence and advisory group. GIA was formed in 1995 when a team of market intelligence specialists, management consultants, industry analysts and technology experts came together to build a powerful suite of customized solutions ranging from outsourced market monitoring services and software, to strategic analysis and advisory.

About the article

This article is based on extracts from Global Intelligence Alliance’s white paper entitled: The Chinese Wind Energy Market. The white paper can be downloaded at www.globalintelligence.com/insights-analysis/white-papers/

Small and medium-sized enterprises (SMEs) frequently view the prospect of obtaining raw or finished materials or goods from countries as far away and culturally different as China as challenging if not impossible. Though large, multinational corporations often have substantial resources and numerous overseas offices to support global sourcing operations, smaller companies with limited resources may believe they have no choice but to stay closer to home. But sourcing in China offers foreign companies of all sizes ever-increasing opportunities to acquire high-quality, low-priced products.

Sourcing considerations

The first step for a company looking at China sourcing opportunities is to consider the market conditions in the United States. Then the company must look at the demands of the China market.

.       Security issues
Protecting intellectual property (IP) is an area of concern when moving production into China. IP protection begins with the proper identification and evaluation of qualified suppliers. Companies must perform thorough due diligence on their selected suppliers, with constant inspections of products and facilities. Thorough IP protection requires specialized services and the advice of qualified attorneys or organizations that specialize in this area of law.

Another security issue is the joint government/business initiative to improve cargo and supply chain security. Earlier this year the US Customs Service introduced strict requirements for anyone associated with importing goods into the United States. The Customs-Trade Partnership Against Terrorism (C-TPAT) is an initiative to increase cargo and supply chain security while improving trade flow. Under this program, businesses must conduct comprehensive self-assessments of their supply chains using the security guidelines developed jointly with US Customs.

                               Short-term scares vs. long-term savings
The outbreak of severe acute respiratory syndrome in Asia this spring temporarily discouraged US-based companies from sending employees overseas for product development, supplier evaluation, and selection. Despite this and other potential short-term risks, the costs of sourcing and producing in China are likely to remain low in the long term.

Advantages of sourcing in China

The advantages of sourcing in China have begun to outweigh the risks.

                                Rising quality, falling demand for brand names
Many retailers are growing less dependent on brand names in part because they, and their suppliers, demand—and receive—good value from Chinese suppliers. When two products are equal in specifications and one is significantly cheaper, a retailer can provide great value to the end customer by choosing the less-expensive product—as long as the customer does not demand a brand name. Many large, well-known Western retailers are thus no longer willing to pay premiums for brand-name products when they can get products of equivalent quality for less money.

Indeed, these large retailers, which buy many China wholeslae products, are responsible for having raised the bar for Chinese suppliers. In some cases, such as in the sporting goods industry, Chinese suppliers are developing and marketing their own brands, which have become quite attractive to large, US-based retailers.

                                  Better service
China’s low product and labor costs are well known; its advantages in services are often underestimated. Today, when a small or medium-sized importer needs labor-intensive, value-added services, Chinese suppliers and logistics service providers are capable of responding. Applying labels or mixing products on a pallet can be extremely time-consuming and labor intensive. Since Chinese labor costs a fraction of US labor, it is worth examining whether a particular service can be performed in China.

Supply chain management and overhead costs are also lower in China, and the education levels and expertise of personnel in logistics services are increasing rapidly.

The role of technology

Until recently, many Chinese suppliers used outdated technology. Even a few years ago, most communication, from sending requests for quotation to issuing purchase orders and confirmations, took place by fax. In the last few years, e-mail has dramatically improved communication and many China-based suppliers have established online ordering or enterprise resource planning systems that can link up with the systems of their customers.

Nevertheless, managing numerous customers and thousands of stock-keeping units by fax or e-mail is inefficient, and importers and suppliers need state-of-the-art systems to achieve the best results. ThreeSixty Sourcing works with customers to establish Internet-based planning systems that permit these customers to access all phases of the planning and production cycle over a secure Internet connection. These customers can then view their order and shipment status or project tracking information any time of day from anywhere in the world.

China’s new factories, high-tech offices, and production lines enable Chinese suppliers to crank out any orders placed in front of them at the right time—and at the right price and quality, says ThreeSixty’s Albucher. And supporting infrastructure such as highways and deep-water ports is also improving. Goods used to linger in Chinese ports for weeks; ships now sail five days a week, Albucher adds.

WTO opens doors

China’s World Trade Organization (WTO) entry has been providing greater market access and trading rights for foreign companies in China, if slowly. Such openings are prompting companies in a wider range of industries to reevaluate the Chinese sourcing model. One example is the luggage industry. High-quality nylon luggage products that used to be made in the Philippines and Thailand are now produced in China.

With lower costs for products and labor in China and an ever-growing selection of more sophisticated logistics services, American SMEs may find that the time is right to explore sourcing in China. In fact, they may find they cannot afford to pass up the opportunity.

By Michael D. Matteo

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Should you be like most of the promotional gift suppliers in the UK, you most likely purchase your goods from UK or European suppliers. You will know and understand that the majority of corporate merchandise products you purchase from your UK suppliers are actually imported from China. You may also have wondered whether you might somehow be able to cut out the middleman and deal directly with the Far East factories. Doing so can be risky but if you find a good supplier you will be happy you gave it a try.

A lot of UK promotional gift suppliers are scared to deal directly with China. This is due greatly to the fact that there are a lot of scare stories out there about how financially dangerous it is to purchase directly from the manufacturer. Although some of these stories may be true, the majority are made up by UK trade suppliers to discourage you from going directly to their suppliers.

The hard fact is, your UK and European suppliers can continue to offer you a valuable service even if you do begin to make contact with Chinese factories for some gift lines. It would be very expensive if not impossible for the small promotional gift business to offer large quantities of the many different promotional products as the larger importers do. Your larger suppliers will import huge quantities of promotional gifts so that they can offer a large selection of promotional merchandise a days notice for print. You should continue to rely on this very important service.

An excellent point at which to start purchasing directly from Chinese factories is to search for them. Information on Chinese manufacturers can be found online and also at one of the excellent Chinese gift exhibitions held in the UK every year. If you fancy a trip to Hong Kong, there is a huge Promotional Gift Exhibition held every Spring that is well worth a visit. You will soon find Chinese suppliers of everything from promotional pens to stress balls to corporate apparel.

And then, you should choose one type of product to import, for example promotional stress balls. Become an expert in the product and learn as much about the manufacturing and printing process as possible. It is important to remember that there is no rush. Take your time and start slowly and you will learn as you go.

When you receive another enquiry for the product you would like to order directly, send your new Chinese supplier an email. They will usually be very happy to service you and will respond with prices for the product and shipping. Shipping can cost more than the actual product so be careful not to under quote your customer. You will most likely be amazed at how much money you will be saving by cutting out the middleman.

Probably you have heard that one of the drawbacks in dealing with the Chinese is that everything is on a pro-forma basis. You will usually have to make payment before the factory will accept your order. There is of course a little risk involved so it is advised that your first couple of orders be quite small. You will want to ensure that your new supplier gets the goods to you on time and that the print and product are of good quality. If time allows, ask you customer to send you a printed sample before proceeding with the order. There will be some cost involved but it will help you sleep at night knowing that the product you have ordered is as goo or better than you would receive from your usual UK supplier.

There is a good probability that you will not be let down. In fact, you may find that the print quality is actually better when done at the source than the promotional gifts are printed here in the UK. Give importing a try and you may never look back. 

Import Chinese Art From China

Most recently, I found myself in need of some form of artwork in one room of my house following a serious episode of decorating. After visiting a local wholesaler, I noticed they were selling some paintings imported from China. The style was abstract symbols with lively colors, oil on canvas. I saw that they also included details of the artists and provinces in China from which they originated.

The range of prices for the paintings according to mount size was from as little as 5 GBP. I am under no illusion about the fact that these paintings are more than likely mass-produced in a factory, but the fact was I still liked the look of them. They were not listed as ‘original’, but ‘hand-painted’ Chinese art.

A result of research on the Internet, China has been mass-producing copies of famous works of art for many years, mainly to the tourist market. Copy painters will live and work in small studios, working many, many hours. They are rarely on fixed wages and are more usually paid by the finished painting.

When I browsed the Internet today, I found a number of sites advertising original Chinese art for sale, and available via online ordering. They offer works of art that are one-off and not copied, and generally retail at much more expensive prices. They advertise both oil-on-canvas and ink pictures drawn onto rice paper, making much of the fact that they are selling only original pieces and not exploiting any of the artists in anyway.

Apparently though, these sites also make a point of belittling the mass-produced copies mentioned earlier, and that probably includes the factory hand-painted canvases I had been looking at in the Wholesalers. Yet there are many department stores around the world that have display after display of prints of famous works of art, framed water color prints and photographic prints either on canvas or behind glass and within wood frames.

Prints of other artists’ works and no doubt done on assembly lines are probably produced in the thousands. So why is the hand painting of oil-on-canvas in a factory looked down upon so much? Is it the apparent exploitation of art students, or common workers used to do the paintings, the long hours that they are forced to work for minimum pay? Or is it simply the blatant copying of other works of art?

Apparently I am no art connoisseur – I cannot afford to be – and I would not knowingly buy a copy palmed off as an original, but if the design is a mass-produced abstract of original design, and is produced quickly and efficiently, and I like the way that piece of art has been done, or the way the artwork will compliment the place I want to hang it, what does it matter how much it cost or how it was produced, so long as it looks right. 

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History

Main article: Timeline of the 2007 pet food recalls

The contaminated vegetable proteins were imported from China in 2006 and early 2007 and used as pet food ingredients. The process of identifying and accounting for the source of the contamination and for how the contaminant causes sickness is ongoing.

The first recalls were announced by Menu Foods late on Friday, 16 March 2007 for cat and dog food products in the United States. By 30 March the United States began to ban imports of wheat gluten from China. The Chinese government responded on 4 April by categorically denying any connection to the North American food poisonings refusing to allow inspection of facilities suspected of producing contaminated products.

However, on 6 April 2007, the Chinese government told the Associated Press they would investigate the source of the wheat gluten and by 23 April China gave permission to FDA investigators to enter the country. On 25 April Chinese authorities began to shut down and destroy the implicated factories and detain their managers. The following day, China’s Foreign Ministry said it had banned the use of melamine in food products, admitting that products containing melamine had cleared customs while continuing to dispute the role of melamine in causing pet deaths. China also vowed to cooperate with U.S. investigators to find the “real cause” of pet deaths.

The United States Senate held an oversight hearing on the matter by 12 April. The economic impact on the pet food market has been extensive, with Menu Foods losing roughly million alone from the recall.

On 24 April 2007, for the first time FDA officials said that melamine had been detected in feed given to animals raised for human consumption within the United States.

As of 7 May 2007, United States food safety officials stated: “There is very low risk to human health from consuming meat from hogs and chickens known to have been fed animal feed supplemented with pet food scraps that contained melamine and melamine-related compounds”

Investigations

In the 2007 outbreak, as all three pet food ingredients containing melamine had been imported from China, investigators focused their inquiries there. Another concern was been raised by allegations that one contract manufacturer of pet food had included contaminated ingredients from China without the knowledge or approval of the pet food marketers. Melamine had also been purposely added as a binder to fish feed manufactured in the United States from ingredients produced in Ohio. This adulteration has not been linked to any illness. The FDA issued a warning to Tembec, the manufacturer of the adulterated binding ingredients. In response, Tembec declared that, in addition to completing the recall of all products containing the adulterated binding ingredients, it would “discontinue manufacturing and marketing of [the products] as aquatic feed binder. Tembec’s aquatic feed binder products were also used by another US company, Uniscope, to produce a binder (XtraBond) for livestock feeds. This binder and the feeds made from it were not recalled, nor was the meat of the livestock fed on these feeds. No fish or fish products were recalled as a result of having been raised on the adulterated feeds.

In 2008, investigation of kidney problems in Chinese infants focused on domestic dairy suppliers in China.

Melamine production and use in China

This section is in need of attention from an expert on the subject.

The following WikiProjects or Portals may be able to help recruit one:

WikiProject China China Portal WikiProject Food and drink

If another appropriate WikiProject or portal exists, please adjust this template accordingly.(February 2009)

Melamine is commonly produced from urea, mainly by either catalyzed gas-phase production or high pressure liquid-phase production, and is soluble in water. Melamine is used combined with formaldehyde to produce melamine resin, a very durable thermosetting plastic, and melamine foam, a polymeric cleaning product. The end products include counter-tops, fabrics, glues and flame retardants. Occasionally, melamine-formaldehyde resin is added to gluten for non-food purposes, such as adhesives or fabric printing.

Melamine is also a byproduct of several pesticides, including cyromazine. The Food Safety and Inspection Service (FSIS) of the United States Department of Agriculture (USDA) provides a test method for analyzing cyromazine and melamine in animal tissues in its Chemistry Laboratory Guidebook which “contains test methods used by FSIS Laboratories to support the Agency’s inspection program, ensuring that meat, poultry, and egg products are safe, wholesome and accurately labeled.” In 1999, in a proposed rule published in the Federal Register regarding cyromazine residue, the United States Environmental Protection Agency (EPA) proposed “remov[ing] melamine, a metabolite of cyromazine from the tolerance expression since it is no longer considered a residue of concern.”

Melamine production in China has also been reported as using coal as raw material. This production has been described as also producing “melamine scrap” which is not “pure melamine but impure melamine scrap that is sold more cheaply as the waste product after melamine is produced by chemical and fertilizer factories here.” Shandong Mingshui Great Chemical Group, the company reported by the New York Times as producing melamine from coal, produces and sells both urea and melamine but does not list melamine resin as a product. Melamine production in China has increased greatly in recent years and was described as in “serious surplus” in 2006 . In the United States Geological Survey 2004 Minerals Survey Yearbook, in a report on worldwide nitrogen production, the author stated that “China continued to plan and construct new ammonia and urea plants using coal gasification technology.”

The off-gas in production contains large amounts of ammonia (see melamine synthesis). Therefore melamine production is often integrated into urea production which uses ammonia as feedstock. Crystallization and washing of melamine generates a considerable amount of waste water, which is a pollutant if discharged directly into the environment. The waste water may be concentrated into a solid (1.5-5% of the weight) for easier disposal. The solid may contain approximately 70% melamine, 23% oxytriazines (ammeline, ammelide and cyanuric acid), 0.7% polycondensates (melem, melam and melon).

In January 2009, China’s Ministry of Industry and Information Technology promulgated draft production permit rules aiming to stem a melamine production glut. Melamine had been widely sold, including over the Internet, for around 10,000 yuan (,500) a metric tonne. The ministry also aimed to shrink the number of melamine producers by setting minimum production levels and strengthening controls on ingredients and waste.

Suspicion of contamination in China

Further information: Food safety in the People’s Republic of China

Melamine manufacturing and the chemical processes in which melamine are used are completely unrelated to the manufacture or processing of food products such as wheat gluten. On 9 April the FDA stated that there is a “distinct possibility” that the food was intentionally contaminated. According to Senator Richard J. Durbin, one theory that investigators are exploring is whether melamine was added to fraudulently increase the measured protein content, which determines the value of the product. Some analysis methods for determining protein content actually measure the amount of nitrogen present, on the assumption that only protein in the sample contributes significantly to its nitrogen content. Melamine contains a very high proportion of nitrogen. According to Liu Laiting, a Chinese professor of animal sciences, melamine is also hard to detect in ordinary tests.

Glutens

Xuzhou Anying Biologic Technology Development Company (), an agricultural products company based in Xuzhou, Jiangsu, China, which U.S. officials believe was the source of the melamine-contaminated gluten, are maintaining innocence and assert that they are cooperating with officials. The general manager for Xuzhou Anying has denied that his company exported goods and says that they are researching who might have exported their product. They note that per Chinese law, all exported wheat gluten is tested and that they were simply a middle man for local producers. However, a truck driver who has carried goods for Xuzhou Anying contradicted this, saying “they have a factory that makes wheat gluten.” Officials in the USDA and FDA believe that Xuzhou Anying labeled its wheat gluten as “nonfood” and exported through a third party, Suzhou Textiles Silk Light & Industrial Products. The nonfood designation would allow the gluten to be shipped without inspection, however a spokesman for Suzhou Textiles has denied that the company exported any wheat gluten.

There is evidence that Xuzhou Anying, despite being a food ingredient supplier, has sought out large quantities of melamine in the past. The New York Times has reported that as recently as 29 March 2007, representatives of Xuzhou Anying wrote, “Our company buys large quantities of melamine scrap” on a message board for the trading of industrial materials. Melamine may have been added to enhance the apparent protein content of the wheat gluten. However, the importer of the wheat gluten, ChemNutra, claims that they received from Xuzhou Anying results of analyses showing “no impurities or contamination.” It has not yet been determined whether Xuzhou Anying products other than wheat gluten have been shipped to North America.

The second Chinese supplier involved in shipping melamine-contaminated food ingredients, Binzhou Futian Biology Technology, has been working with importer Wilbur-Ellis since July 2006 . Binzhou Futian supplies soy, corn and other proteins to the United States, Europe and Southeast Asia. Binzhou typically ships rice protein concentrate in white bags but on 11 April one bag was pink and had the word “melamine” stenciled on it. Binzhou explained to Wilbur-Ellis that the original bag had broken and a mislabeled, but new, bag had been used. The company only supplies food and feed ingredients.

Stephen Sundlof, director of the FDA’s Center for Veterinary Medicine, said that melamine turning up in exported Chinese wheat gluten, rice protein concentrate and corn gluten supports theories of intentional adulteration. “That will be one of the theories we will pursue when we get into the plants in China.”

On 29 April 2007 and 30 April 2007, the International Herald Tribune and New York Times reported that some animal feed manufacturers in China admit to having used melamine scrap in animal feed for years. Said Ji Denghui, general manager of the Fujian Sanming Dinghui Chemical Company: any companies buy melamine scrap to make animal feed, such as fish feed. I don know if there a regulation on it. Probably not. No law or regulation says on do it, so everyone doing it. The laws in China are like that, aren they? If there no accident, there won be any regulation. Such use of “melamine scrap”, described as leftover from processing of coal into melamine for use in creating plastic and fertilizer, was described as widespread. Melamine is said to have been chosen in order to inflate crude protein content measures and to avoid tests for other common and illegal ingredients, such as urea.

As of 2 May 2007, officials of the USDA and FDA still do not know who manufactured the contaminated food or where the contamination took place. The Chinese government has said that Xuzhou Anying, for instance, purchased its products from 25 different manufacturers.

On 8 May 2007, The International Herald Tribune reported that three Chinese chemical makers have said that animal feed producers often purchase, or seek to purchase, the chemical, cyanuric acid, from their factories to blend into animal feed to give the false appearance of a higher level of protein, suggesting another potentially dangerous way that melamine and cyanuric acid might combine in protein products.

The same day, FDA officials revealed that the vegetable proteins were not only contaminated, but mislabeled. Both the wheat gluten and rice protein concentrate were actually wheat flour, a much cheaper product from which wheat gluten is extracted. The addition of nitrogen-rich compounds were necessary to make the flour test as if it were protein extract.

Dairy

Further information: 2008 Chinese milk scandal

On 11 September 2008, fresh reports of massive outbreak of melamine contamination found in China led to recall of Baby Formula products in China. Some Chinese reports said the manufacturer of the milk products might not have consciously added Melamine to their milk powder, however they could have used a soy protein substitute to lower production costs, and the source of their soy substitute had melamine added to it. Many Chinese babies had developed kidney stones and other acute kidney problems in recent months across China, investigation led to the discovery of this contaminant. Some people were wondering how much melamine has already entered food products designated for adults without discovery. More worrying are claims reported in China that there are now new chemicals that can be added to food to lower production costs, and yet pass the tests for melamine and other related chemicals. Impact of this incident to dairy industry outside China is beginning to unravel.

By the end of September 2008, the Chinese government said that 22 dairy companies, including Sanlu and export brands like Mengniu and Yili, had produced powdered baby formula that contained traces of melamine. Some dairy farmers interviewed in Hebei Province said it was an open secret that milk was adulterated. Some dairies routinely watered down milk to increase profits, then added other cheap ingredients so the milk could pass a protein test. “Before melamine, the dealers added rice porridge or starch into the milk to artificially boost the protein count, but that method was easily tested as fake, so they switched to melamine, said Zhao Huibin, a dairy farmer near Shijiazhuang.

Investigators say the adulteration was nothing short of a wholesale re-engineering of milk. Researchers established that workers at Sanlu and at a number of milk-collection depots were diluting milk with water; they added melamine to dupe a test for determining crude protein content. “Adulteration used to be simple. What they did was very high-tech,” says Chen Junshi, co-chair of the Sino-U.S. workshop and a risk-assessment specialist at China’s Center for Disease Control and Prevention. Investigators subsequently learned that the emulsifier used to suspend melamine also boosted apparent milk-fat content. Sanlu baby formula contained a whopping 2563 mg/kg of melamine, adding 1% of apparent crude protein content to the formula, where normal milk is 3.0% to 3.4% protein. Chen says a dean of a school of food science told him that it would take a university team 3 months to develop this kind of concoction. Investigators have concluded that as-yet-unidentified individuals cooked up a protocol for a premix, a solution normally designed to fortify foods with vitamins or other nutrients but, in this case, it was posisonous. Several milk-collecting companies were using the same premix, Chen says: “So someone with technical skill had to be training them.”

Non-protein nitrogen as a feed additive

Further information: Non-protein nitrogen

Ruminant animals can obtain protein from at least some forms of non-protein nitrogen (NPN) through fermentation by their rumen bacteria, hence NPN is often added to their diet to supplement protein. Nonruminants such as cats, dogs and pigs (and humans) cannot utilize NPN. NPN are given to ruminants in the form of pelleted urea, ammonium phosphate and/or biuret. Sometimes slightly polymerized special urea-formaldehyde resin or a mixture of urea and formaldehyde (both are also known as formaldehyde-treated urea) is used in place of urea, because the former provides a better control on the nitrogen release. This practice is carried out in China and other countries, such as Finland , India and France.

Cyanuric acid has also been used as NPN. For example, Archer Daniels Midland manufactures an NPN supplement for cattle, which contains biuret, triuret, cyanuric acid and urea. FDA permits a certain amount of cyanuric acid to be present in some additives used in animal feed and also drinking water.

Melamine use as NPN for cattle was described in a 1958 patent. In 1978, however, a study concluded that melamine “may not be an acceptable nonprotein N source for ruminants”ecause its hydrolysis in cattle is slower and less complete than other nitrogen sources such as cottonseed meal and urea.

In China, it is known that ground urea-formaldehyde resin is a common adulterant in feed for non-ruminants. Domestically it is often sold under the euphemism “protein essence” () and is described as “one kind of new proteinnitrogen feed additive”. However, urea-formaldehyde resin itself has been suggested as appropriate for use in feed for some non-ruminants in at least one UN FAO report, suggesting its use as a binder in feed pellets in aquaculture.

There is at least one report of inexpensively priced rice protein concentrate (feed grade) containing non-protein nitrogen being marketed for use in non-ruminants dating back to 2005 . In a news item on its website, Jiangyin Hetai Industrial Co., Ltd. warned its customers of low-priced “PSEUDO rice protein” for sale in the market by another unnamed supplier, noting that the contaminant could be detected by analyzing the isoelectric point. It is not clear from that report whether the contaminant in that case was melamine or some other non-protein nitrogen source or whether any contaminated rice protein concentrate made it into the food supply at that time.

On 18 Apr 2007, an ad was posted on the trading website Alibaba.com selling “Esb protein powder” in Xuzhou Anying’s name. The product is said to be protein in nature and suitable for livestock and poultry feed, yet claims a crude protein content of 160-300%. It also mentions in passing the product makes use of “NPN” which is an acronym for non-protein nitrogen. Similar ads were placed on other websites, some dated as early as 31 Oct 2005. Products with similar descriptions were also sold as “EM bacterium active protein forage” by Shandong Binzhou Xinpeng Biosciences Company and “HP protein powder” by Shandong Jinan Together Biologic Technology Development Company.

Protein testing

Further information: Protein_in_nutrition#Testing_in_foods

Resonance structures of the peptide bond that links individual amino acids to form a protein polymer.

Proteins, unlike most other food components, contain nitrogen, making nitrogen measurement a common surrogate for protein content. The standard tests for crude protein content used in the food industry (Kjeldahl method and Dumas method are used for official purposes) measure total nitrogen.

Accidental contamination and intentional adulteration of protein meals with non-protein nitrogen sources that inflate crude protein content measurements have been known to occur in the food industry for decades. To ensure food quality, purchasers of protein meals routinely conduct quality control tests designed to detect the most common non-protein nitrogen contaminants, such as urea and ammonium nitrate.

At least one pet food manufacturer not involved in any recalls, The Honest Kitchen, has reacted to the news of melamine contamination by announcing that it would add melamine testing to the suite of quality control tests it already conducted on all ingredients it purchases.

In at least one other segment of the food industry, the dairy industry, some countries (at least the U.S., Australia, France and Hungary), have adopted “true protein” measurement, as opposed to crude protein measurement, as the standard for payment and testing: “True protein is a measure of only the proteins in milk, whereas crude protein is a measure of all sources of nitrogen and includes nonprotein nitrogen, such as urea, which has no food value to humans. … Current milk-testing equipment measures peptide bonds, a direct measure of true protein.” Measuring peptide bonds in grains has also been put into practice in several countries including Canada, the UK, Australia, Russia and Argentina where near-infrared reflectance (NIR) technology, a type of infrared spectroscopy is used. The Food and Agriculture Organization of the United Nations (FAO) recommends that only amino acid analysis be used to determine protein in, inter alia, foods used as the sole source of nourishment, such as infant formula, but also provides: “When data on amino acids analyses are not available, determination of protein based on total N content by Kjeldahl (AOAC, 2000) or similar method … is considered acceptable.”

Allegations of manufacturing and product tampering

The 26 April 2007 and 27 April 2007 recalls by Blue Buffalo, Diamond, Harmony Farms, and Natural Balance are claimed by all 4 brands to be due to unauthorized inclusion of rice protein by American Nutrition, Inc. (ANI), their manufacturer. This adds a new potential source of contamination and distrust, namely non-compliant contract manufacturers, beyond the original problematic Chinese ingredient suppliers. Diamond and Natural Balance refer to this as a “manufacturing deviation” by ANI. Blue Buffalo and Harmony Farms characterize this as “product tampering” by ANI. ANI’s recall notice makes no comment on these allegations.

Melamine adulteration and contamination in the U.S.

On 31 May 2007, the International Herald Tribune reported that melamine has also been purposely added as a binder to fish and livestock feed manufactured in the United States and traced to suppliers in Ohio and Colorado.

In autumn 2008, the Food and Drug Administration detected traces of melamine in one top-selling brand of infant formula and traces of cyanuric acid in another brand. Separately, a third major formula maker said that in-house tests had detected trace levels of melamine in its infant formula. The three firms manufacture more than 90 percent of all infant formula produced in the United States. The FDA and other experts said the melamine contamination in U.S.-made formula had occurred unintentionally during the manufacturing process and were not a safety concern.

Impact on human food supply

In early 2007, U.S. officials publicly said that they do not believe melamine alone to be harmful to humans. However, there was too little data at that time to determine how it reacts with other substances, in particular, the combination of melamine with cyanuric acid, a similar chemical known to be found in the waste product of at least some methods of melamine production, and which combination some American and Canadian scientists have suggested may have led to the pet deaths through kidney failure. On 25 May, 2007 in a US FDA/CSFAN Interim Melamine and Analogues Safety/Risk Assessment, FDA stated: “While it is entirely possible that the analogues are more or less potent than the parent compound, melamine, we have no information that assesses the relative potency of the three analogues as compared to melamine; therefore, for the purpose of this interim assessment, we have made an assumption of equal potency. It has been hypothesized that melamine may interact synergistically with its three analogues, but no studies have been conducted that specifically test this hypothesis. Very preliminary work suggests that if it does occur, the formation of lattice crystals, particularly between melamine and cyanuric acid, takes place at very high dose levels and is a threshold and concentration dependent phenomenon that would not be relevant to low levels of exposure. Although still under investigation, it now appears that the combination of melamine and cyanuric acid has been linked to the acute renal failure in cats and dogs that have eaten the suspect pet foods….”

In the United States, five potential vectors of impact on the human food supply have been identified. The first, which has already been acknowledged to have occurred by FDA and U.S. Department of Agriculture officials, is via contaminated ingredients imported for use in pet foods and sold for use as salvage in animal feed which has been fed to some number of hogs and chickens, the meat from which has been processed and sold to some number of consumers: “There is very low risk to human health” in such cases involving pork and poultry. On 1 May 2007, the FDA and USDA stated that millions of chickens fed feed tainted with contaminated pet food had been consumed by an estimated 2.5 to 3 million people.

The second potential vector is via contaminated vegetable proteins imported for intended use as animal feed, which has apparently been acknowledged to occur with regard to fish feed in Canada, while the third possible route is via contaminated vegetable proteins imported for intended use in human food products, and the FDA has issued an import alert subjecting all Chinese vegetable proteins to detention without examination.

A fourth potential vector is referred to in the 10 May 2007 FDA-USDA press conference, viz. incorporation of contaminated vegetable proteins into products intended for human use and subsequent importation.

A fifth vector is acknowledged to have occurred in the 30 May 2007 FDA/USDA press conference, whereby U.S. manufacturers of livestock and shrimp/fish feed have acknowledged adding melamine to their products as a binder.

The original Xuzhou Anying wheat gluten was “human grade,” as opposed to “feed grade,” meaning that it could have been used to make food for humans such as bread or pasta. At least one contaminated batch was used to make food for humans, but the FDA quarantined it before any was sold. The FDA also notified the Centers For Disease Control and Prevention to watch for new patients admitted to hospitals with renal failure. There have been no observed increases in human illnesses and little human food has tested as contaminated, however the FDA still has not accounted for all of the Xuzhou Anying wheat gluten.

Reports of widespread melamine adulteration in Chinese animal feed have raised the possibility of wider melamine contamination in the human food supply in China and abroad. Despite the widely reported ban on melamine use in vegetable proteins in China, at least some chemical manufacturers continue to report selling it for use in animal feed and in products for human consumption. Said Li Xiuping, a manager at Henan Xinxiang Huaxing Chemical in Henan Province: “Our chemical products are mostly used for additives, not for animal feed. Melamine is mainly used in the chemical industry, but it can also be used in making cakes.”

In 2009, The World Health Organization(WHO) published a report on a December 2008 expert meeting held in cojunction with the FAO concluding, inter alia, that “a tolerable daily intake (TDI) of 0.2 mg/kg body weight for melamine was established. The TDI is applicable to the whole population, including infants.” However, the experts also noted: “This TDI is applicable to exposure to melamine alone. … Available data indicate that simultaneous exposure to melamine and cyanuric acid is more toxic than exposures to each compound individually. Data are not adequate to allow the calculation of a health-based guidance value for this co-exposure.”

Background

Main article: Timeline of the 2007 pet food recalls#The Human Food Supply

Further information: Timeline of the 2008 Chinese milk scandal

Whole hogs that had eaten contaminated feed were sold to individuals in California

On 3 April 2007, the Boston Globe reported that tainted wheat gluten ended up in factories that produce food for human consumption. Then, on 19 April, Federal U.S. officials said that they were investigating reports that Binzhou Futian rice protein had been used in hog feed, but declined to specify where. The California Department of Food and Agriculture placed American Hog Farm in Ceres, California under quarantine, after melamine was found in the urine of the hogs on the farm. California State Veterinarian Dr. Richard Breitmeyer said “All animals appear healthy,” and that “It is unknown if the chemical will be detected in meat.” American Hog Farm primarily supplies whole hogs to individuals. Anyone who has purchased a pig from American Hog Farm since 3 April is advised not to eat it. According to California state officials, approximately 45 state residents consumed pork from hogs that had been fed melamine-contaminated feed.

On 24 April 2007, FDA officials said that melamine was in feed given to hogs (and in one case, in Missouri, to chickens) in California, New York, North Carolina, South Carolina, Utah and possibly Ohio. FDA also said that it was adding testing of imported ingredients and finished products that contain cornmeal, corn gluten, rice bran and soy protein to the tests it is already conducting for melamine in wheat gluten and rice protein concentrate ingredients and products.

Dr. David Acheson, assistant FDA commissioner for food protection, announced on 3 May that the FDA had begun to investigate domestic food manufacturers who use protein products to ensure that no contaminated product is being used in foods intended for human use, noting that it has no evidence of this occurring, “but it’s prudent to look.”

FDA/USDA acknowledge contaminated food supply

On 28 April 2007, the USDA and the FDA, in a joint press release acknowledged that pork from hogs fed contaminated feed had entered the human food supply, stating: “Based on information currently available, FDA and USDA believe the likelihood of illness after eating pork from swine fed the contaminated product would be very low.”

On 30 April 2007, the USDA and the FDA updated their 28 April food safety position to include poultry, reflecting contaminated feed being fed to chickens in Indiana.

Risks to human health from this mode of entering the human food supply have been said to be low according to a number of FDA, CDC and university toxicologists, though it was acknowledged that how melamine had harmed cats and dogs “remains something of a mystery”.

On 7 May 2007, the USDA and the FDA issued a joint press release reflecting the combined judgment of five federal agencies with regard to the risk to humans in consuming meat from animals fed feed contaminated with tainted pet food scraps, concluding: “There is very low risk to human health” in such cases involving pork and poultry. The risk assessment was conducted by scientists from FDA,the Food Safety and Inspection Service (FSIS) of USDA, Centers for Disease Control and Prevention (CDC), the Environmental Protection Agency (EPA), and U.S. Customs and Border Protection: “In the most extreme risk assessment scenario, when scientists assumed that all the solid food a person consumes in an entire day was contaminated with melamine at the levels observed in animals fed contaminated feed, the potential exposure was about 2,500 times lower than the dose considered safe” using criteria established prior to current research focusing on the apparent increased toxity related to the interaction of melamine and cyanuric acid in vivo for which there is no established safe dosage. FDA and USDA are in the process of identifying a group of experts to convene a scientific advisory board that would be charged with reviewing the risk assessment and contributing to future scientific analysis related to the risk of melamine and its compounds to humans and animals.

On 8 May 2007, some fish intended for human consumption was also announced as having consumed feed contaminated with tainted pet food scraps. According to the Assistant Commissioner for Food Safety of the FDA, “We do not believe that there is any significant risk associated with consuming these fish.” Though the FDA declined to identify the states involved in the recall, the Oregon Department of Fish and Wildlife said contaminated fish feed had been found at the Marion Forks Hatchery. They also said that the company that provided the feed, Skretting, had shipped the same lot of feed to six other hatcheries in Oregon.

On 10 May 2007, on further inquiry into the risk to animal and human health of ingesting melamine and cyanuric acid in combination, Dr. David Acheson, Assistant Commissioner for Food Protection with the FDA said: “I’m not aware of any published studies on that. I have seen some preliminary data that would indicate that they are additive. When you put the two together, they are additive rather than synergistic…. The risk assessors also estimated that even if synergism were to occur, it would be unlikely to result in more than a tenfold increase in overall toxicity, and that still gives you a very large margin of safety.” No data supporting additivity was produced at this time. No basis for estimating a tenfold increase in risk in the case of synergism was offered.

On 15 May 2007, USDA announced that swine that ate melamine-tainted food have been cleared for human consumption. About 56,000 pigs have been affected in several states. However, no tests have been carried out on the effects of cyanuric acid in pork as well as possible effects of interaction with melamine in the body. While the statement also said that there is no evidence of bioaccumulation of melamine alone, no mention was made whether bioaccumulation might be affected by the interaction of melamine and cyanuric acid in vivo particularly in swine kidneys.

On 3 October, 2008 (updated 28 November 2008), in response to FDA learning that melamine might be contained in infant formula manufactured by a firm in China, FDA updated its 2007 interim risk assessment: “Infants may be more sensitive than adults to exposures because, for example, infant formula is the sole source of nutrition, exposure continues for up to 12 months, and renal function may be more immature compared to adults. This raises a high degree of uncertainty with regard to the determination of safety/risk. … Therefore, if 100% of the diet were contaminated at a level of 1.26 ppm of melamine, an infant daily intake would equal 0.063 mg/kg bw/d. This value of 1.26 ppm is rounded down to 1.0 ppm melamine to provide an additional margin of safety.”

FDA detains Chinese imports without examination

On 27 April 2007, the FDA subjected all vegetable proteins imported from China, intended for human or animal consumption, to detention without physical examination, including: Wheat Gluten, Rice Gluten, Rice Protein, Rice Protein Concentrate, Corn Gluten, Corn Gluten Meal, Corn By-Products, Soy Protein, Soy Gluten, Proteins (includes amino acids and protein hydrosylates), and Mung Bean Protein.

These ingredients are used in such diverse products as breakfast cereal, pizza dough, baby formula, and protein shakes although at the time, there is “no evidence” that any contaminated ingredients have been used to produce human foods, according to Dr. David Acheson, chief medical officer at the FDA’s Center for Food Safety and Applied Nutrition.

FDA requests monitoring by Centers for Disease Control

In addition to now testing a wide variety of imported food products and ingredients for melamine contamination, FDA has also “asked the Centers for Disease Control and Prevention to use its surveillance network to monitor for signs of human illness, such as increased renal failure, that could indicate contamination of the human food supply.”

On 2 May 2007, Bernadette Burden, a CDC spokeswoman, was reported as saying that a CDC survey of poison control centers, veterans hospitals and a sample of private hospitals had found no increase in reports of kidney diseases.

U.S. federal testing methods

The Food Safety and Inspection Service (FSIS) of the United States Department of Agriculture (USDA) provides a test method for analyzing cyromazine and melamine in animal tissues in its Chemistry Laboratory Guidebook which “contains test methods used by FSIS Laboratories to support the Agency’s inspection program, ensuring that meat, poultry, and egg products are safe, wholesome and accurately labeled.”

On 24 April 2007, Stephen Sundlof, director of the FDA’s Center for Veterinary Medicine, told reporters: “We have found cyanuric acid. It is somewhat related to melamine. Another compound that is very high in nitrogen and we are testing for that compound as well.”

On 7 May 2007, the FDA sent a letter to food manufacturers, to remind them “of their legal responsibility to ensure that all ingredients used in their products are safe for human consumption.” The FDA has made available to food manufacturers a procedure providing a general guide for the sample preparation and analysis of wheat gluten and pet food matrices for melamine using gas chromatography/mass spectrometry, the same methodology used by the FERN laboratories.

On 15 May 2007, the process for testing meat from swine was validated by USDA’s Food Safety and Inspection Service (FSIS).

Human food supply outside of U.S.

Media reports have raised the possibility that melamine may be widely used as an ingredient in human food products in China. According to a report from the Chinese Ministry of Health, 294,000 infants had been affected by melamine-contaminated infant formula by the end of November 2008. More than 50,000 infants have been hospitalized, and six deaths have been confirmed. Because of the large potential health impact, the World Health Organization (WHO) and the Food and Agriculture Organization of the United Nations (FAO) convened an Expert Meeting.

Official EC statements

On 7 June 2007 (updated 4 July 2007), the European Food Safety Authority (EFSA), in EFSA’s Provisional Statement on a Request from the European Commission Related to Melamine and Structurally Related Compounds such as Cyanuric acid in Protein-rich Ingredients Used for Food and Feed, concluded: “EFSA provisionally recommends to apply a TDI of 0.5 mg/kg b.w. for the total of melamine and its analogues …. A source of uncertainty is the combined toxicity of melamine and cyanuric acid and their possible synergistic effects in relation to the recently observed toxicity linked to the acute renal failure and death of pet animals (cats and dogs) in the U.S. This mechanism is currently under investigation.”

On 21 June 2007, The Health & Consumer Protection Directorate-General of the European Commission (EC) in reporting the Summary Minutes of the Meeting of the Standing Committee on the Food Chain and Animal Health (7 June & acknowledged that corn gluten contaminated with melamine and rice protein concentrate contaminated with melamine and related compounds, both originating firom China, had been intercepted in Poland and Greece, respectively. The minutes further directed that “in case food producing animals have been fed with feed contaminated with melamine and related compounds, there is for the purpose of protecting human health, taking into account the conclusions of the EFSA statement, no need to take restrictive measures as regards the animals which have been fed with contaminated feed and as regards food of animal origin originating from animals fed with contaminated feed.”

On 25 September 2008, EFSA issued a press release in response to reports of contaminated milk powder from China which stated, in part: “Children with a mean consumption of biscuits, milk toffee and chocolate made with such milk powder would also not exceed the TDI. However, in worst case scenarios with the highest level of contamination, children with high daily consumption of milk toffee, chocolate or biscuits containing high levels of milk powder would exceed the TDI. Children who consume both such biscuits and chocolate could potentially exceed the TDI by up to more than three times.”

Impact on human pharmaceutical supply

In August 2009 the United States Food and Drug Administration advised pharmaceutical manufacturers that they should determine if they are using components possibly contaminated with melamine and test those compenents at risk, as well as make sure they get certifications from suppliers that at-risk components have been tested appropriately. A new guidance lists 27 components the agency considers to be at risk of melamine contamination based on its search of U.S. Pharmacopeia/National Formulary monographs and its Inactive Ingredient Database. The list which includes adenine, ammonium salts, gelatin, guar gum, lactose, povidone and taurine is not all-inclusive, the guidance says. “For the purpose of this guidance, we use the term at-risk component to mean those ingredients or raw materials that rely on a test for nitrogen content for their identity or purity or strength, and that contain nitrogen in amounts greater than 2.5 percent.”

Reaction

In China

Further information: 2008 Chinese milk scandal

Chinese government

The contaminated wheat gluten came from a company located in the Jiangsu Province in eastern China.

Once wheat gluten had been isolated as the source of the problems, federal investigators in the United States began to trace the gluten used in the foods. All of the gluten came from ChemNutra’s Kansas City warehouse. ChemNutra said it imported nearly 800 metric tons of wheat gluten from the Xuzhou Anying Biologic Technology Development Company of Xuzhou, Jiangsu, China between 29 November and 8 March. ChemNutra says the gluten came directly from China or from China through the Netherlands, and that it received no reports of contamination in the chemical analysis provided by Xuzhou Anying Biologic Technology Development Company. The products were shipped from the company’s Kansas City warehouse to several pet food makers and one distributor of pet food ingredients in the US and Canada, including the companies affected by the recall. Xuzhou Anying also exports carrots, garlic, ginger, corn protein powder, vegetables and feed.

On 5 April 2007, several days after the United States halted all wheat gluten imports, the Chinese government categorically denied any connection to the North American food poisonings to the New York Times, claiming they had no record of exporting any agricultural products that could have tainted the recalled pet foods, including the wheat gluten that has been the focus of the investigation. The general manager of the Xuzhou Anying Biologic Technology Development Company also denied that they had exported any wheat gluten to North America.

However, on 6 April 2007, the Chinese government told the Associated Press they would investigate the source of the wheat gluten. Although the government refused to give details on the investigation, the Xinhua News Agency stated that “sampling and examination” of wheat gluten was under way across China, centering on the presence of melamine. Officials with office of the General Administration of Quality Supervision, Inspection and Quarantine, said that they will stay in touch with the U.S. Embassy in Beijing and that “further measures would be taken based on developments in the United States.”

Starting on 4 April 2007, the Chinese government refused US FDA requests to inspect facilities suspected of producing contaminated products. On 11 April, the director of the FDA’s field investigations division said he was disappointed with the Chinese response. On 23 April, after refusing for nearly a month, China finally gave permission to FDA investigators to enter the country.

On 25 April 2007, Chinese authorities shut down Binzhou Futian Biology Technology Co. Ltd., and detained the manager, Tian Feng. Feng has denied responsibility, saying that he “didn’t do anything wrong,” and denying that he even knew what melamine was. The following day, China’s Foreign Ministry said it has banned the use of melamine in food products, admitting that products containing melamine had cleared customs while continuing to dispute the role of melamine in causing pet deaths. China also vowed to cooperate with U.S. investigators to find the “real cause” of pet deaths. China provided a transcript of the 26 April press conference indicating that an invitation to FDA investigators had been sent on 23 April, but making no mention of banning melamine usage.

On 3 May 2007, Chinese authorities detained Mao Lijun, general manager of the Xuzhou Anying Biologic Technology Development, one of the companies accused of exporting contaminated protein, on unspecified charges, perhaps showing that the Chinese government is taking additional steps in its own investigations and signaling cooperation with US FDA investigators who arrived in China on Monday.

On 9 May 2007, Chinese authorities took a number of steps to address food safety concerns.

On 29 May 2007, in actions not linked directly to the protein export scandal, Xinhua reported that Zheng Xiaoyu (), the former head of China’s ministry of food and drug safety, had been convicted of personally approving unproven and unsafe medicines after taking bribes from eight pharmaceutical companies totaling more than 6.49 million RMB, (or a rough equivalent of 850,000 US dollars), which resulted in at least hundreds patient deaths, or perhaps even thousands, and as a result, he was sentenced to death. It was also discovered during his eight year reign as the head of China’s ministry of food and drug safety, Zheng Xiaoyu had personally ordered to approval of more than 150,000 new medicines, an average of astonishing 134 times that of FDA, which only approves 140 or so new medicines annually. Not surprisingly, most of those 150,000 medicines were the products of the eight pharmaceutical companies that bribed Zheng Xiaoyu, and a single unsafe medication of Anhui Hua Yuan () Company (since closed with its CEO committed suicide before his arrest) resulted 14 patient deaths and hundreds being permanently disabled. Zheng Xiaoyu’s former deputy was also convicted, for accepting more than two million RMB (or a rough equivalent of a quarter million US dollars) to help Zheng Xiaoyu. The former deputy was sentenced to a two year delayed death sentence and a new system for unsafe food recall would be implemented by the end of the year. However, the general public sentiment in China was that this was only the tip of the iceberg, because in the case of Zheng Xiaoyu, the exact amount of bribe is much higher than what has been revealed so far, and this is confirmed by Zheng Xiaoyu’s own confession: in March 2007, Zheng Xiaoyu admitted that the exact amount might never be known for sure because the 6.49 million was only what he accepted, and his wife and son also accepted separate huge amount of bribe which he was not part of, and the investigation on Zheng Xiaoyu’s family is still on-going. The Chinese public also believes that as the investigation deepens, the number of confirmed patients who died and were disabled would certainly increase.

In August 2007, Xinhua reported on a number of steps China had recently taken to ensure food safety and product quality, including instituting new product recall and customer notification systems.

In 2008, a number of steps were taken in China in response to the 2008 Chinese milk scandal. A September 25, 2008 article from Xinhua is provided here as a link into some of the “Lessons Learned”: “Sanlu, the center of the scandal, provided a bad example of crisis management. When it was first exposed, Sanlu refused to take the blame and passed the buck to innocent dairy farmers, which ignited great anger nationwide. A further official investigation showed Sanlu had lied about its contaminated baby formula for months while thousands of infants got sick and at least three died. Sanlu didn’t openly admit its products were toxic until Sept. 11. It eventually recalled baby formula manufactured on and before Aug. 6.”

In the United States

Federal government

All of the food recalls executed by companies in the United States and Canada were voluntary, i.e. not mandated by any government agency. In the United States, prior to the recall, the Food and Drug Administration did not keep pet foods under the same level of protection and safety ensurance as food intended for human consumption. According to the FDA, the FDA’s “regulation of pet food is similar to that for other animal feeds. The Federal Food, Drug, and Cosmetic Act (FFDCA) requires that pet foods, like human foods, be pure and wholesome, safe to eat, produced under sanitary conditions, contain no harmful substances, and be truthfully labeled.” However, “there is no requirement that pet food products have premarket approval by FDA.”

Once the recall was announced, the Food and Drug Administration immediately began to mobilize resources to assist in the investigation. The FDA has dedicated each of its 20 district offices and three field laboratories to the investigation and more than “400 employees are involved in sample pet food collection, monitoring of recall effectiveness, and preparing consumer complaint reports.” The FDA has activated its Emergency Operations Center, making sure the information on the poisoning gets to scientists and inspection teams. The agency “is also working with its regulatory partners in all 50 state agriculture and health agencies to inform them of the status of the investigative and analytical efforts.” The FDA issued an alert to its field personnel that they should block import of wheat gluten from Xuzhou Anying Biologic Technology Development Company Ltd., and subject wheat gluten from China and the Netherlands to increased scrutiny.

As a result of the contamination, consumers and pets’ rights groups have called for the FDA to take a more active role in ensuring pet food safety. On 2 April 2007, People for the Ethical Treatment of Animals called for the resignation of the FDA commissioner, Dr. Andrew von Eschenbach.

Possibly in response to growing concern about ensuring the safety of the U.S. food supply, on 1 May 2007, Dr. von Eschenbach announced the creation of an Assistant Commissioner for Food Protection to advise on “strategic and substantive food safety and food defense matters.” Dr. David Acheson will fill this roll. According to Dr. von Eschenbach, “The protection of America’s food supply and therefore the safety of Americans eating food of domestic or international origin is of utmost importance to me as a physician, and to the mission of this agency.”

U.S. Congress

In the aftermath of the recall, there was a call from consumers for an investigation into Menu Foods reaction to the poisonings, and the federal government’s stand on pet food safety and quality control and the FDA’s response to the recall. On 1 April 2007, Senator Dick Durbin (D – Illinois) called on the FDA to “account for weak links in the pet food inspection system.” Earlier in the week, Representative Rosa DeLauro (D – Connecticut) asked for an analysis of the FDA’s oversight of pet food manufacturing facilities and a report of actions taken since the recall.

On 6 April 2007, Senator Durbin criticized the federal inspection process for both human and pet food and called for the hearings on the matter. According to the Los Angeles Times who interviewed Durbin 8 April, Durbin said he would like to see the FDA set national standards and inspection rules for pet food manufacturing facilities, and to see “federal law changed to allow the FDA to order a recall of food intended for human or pet consumption rather than rely on companies to do it voluntarily.”

Durbin is working with Senator Herb Kohl (D – Wisconsin), the Chairman of the United States Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies. Senator Kohl initiated hearings in the Senate Appropriations Subcommittee along with Senator Durbin and Senator Bob Bennett (R – Utah). Senator Robert Byrd (D – West Virginia), from the United States Senate Committee on Appropriations was there as well. Witnesses included FDA officials. They looked into several areas: the delay in reporting by Menu Foods, the lack of federal inspections of pet food facilities, and incomplete reporting by the FDA since the start of the recall.

During the hearing Senators Durbin and Byrd criticized the government’s response during the recall. Durbin specifically criticized the lack of any regular inspection practices or quality control with regards to pet food safety. Senator Kohl criticized the FDA’s communication to the public about recalled foods, noting that volunteer websites had more detailed and easier-to-access information about the extent of the problem and which specific foods are of concern than FDA’s online resources which Kohl said was contradictory of itself at times, and which the FDA official giving testimony admitted to being difficult to navigate.

On 18 April 2007, Senator Durbin and Representative DeLauro met with US FDA Commssioner von Eschenbach to discuss the additional rice protein recalls and learned that the Chinese government was blocking outside attempts to investigate the contamination. In response, they sent a letter to Zhou Wenzong, China’s Ambassador to the United States saying in part that “contaminated batches of wheat gluten and rice protein responsible for these events were imported from China” and that “no level of melamine should be found in pet or human food” and asking for visas for inspectors from the United States.

Public

The protein export scandal inspired a significant amount of US media attention to Chinese food safety concerns, and increased unease about Chinese imports amongst the American public. A July 2007 Consumer Reports poll found that 92 percent of Americans favored “country of origin” labeling on meat products, while in a USA Today/Gallup poll, 74 percent of US respondents said they were “somewhat concerned” or “very concerned” about the safety of food imported from China.

See also

2007 pet food recalls

2007 Chinese export recalls

2008 Chinese milk scandal

International Reaction to the 2008 Dairy Scandal

Food safety in the People’s Republic of China

References

^ a b Katie Burns and Susan Kahler (15 June 2007). “Ongoing recall investigation unraveling the facts”. Journal of the American Veterinary Medical Association. http://www.avma.org/onlnews/javma/jun07/070615m.asp. Retrieved 2007-06-08. 

^ a b c Barboza, David (8 May 2007). “Second chemical eyed in Chinese pet food scandal”. New York Times. http://iht.com/articles/2007/05/08/business/petfood.php. Retrieved 2007-05-08. 

^ a b c d Roebuck, Karen (11 April 2007). “Chinese criticized in pet food probe”. Pittsburgh Tribune-Review. http://pittsburghlive.com/x/pittsburghtrib/news/rss/s_502101.html. Retrieved 2007-04-11. 

^ a b c d “DURBIN, DELAURO MEET WITH VON ESCHENBACH; URGE CHINESE GOVERNMENT TO COOPERATE ON PET FOOD CONTAMINATION INVESTIGATION”. 18 April 2007. http://www.durbin.senate.gov/record.cfm?id=272635. Retrieved 2007-04-19. 

^ a b Yao, Siyan (31 August 2007). “China unveils recall systems for unsafe food, toys”. Xinhua. http://news.xinhuanet.com/english/2007-08/31/content_6639019.htm. Retrieved 2007-11-27. 

^ a b c d David Barboza and Alexei Barrionuevo (30 April 2007). “Filler in Animal Feed Is Open Secret in China”. The New York Times. http://www.nytimes.com/2007/04/30/business/worldbusiness/30food.html?pagewanted=1&hp;. Retrieved 2007-04-30. 

^ a b c “IMPORT ALERT #99-29, “DETENTION WITHOUT PHYSICAL EXAMINATION OF ALL VEGETABLE PROTEIN PRODUCTS FROM CHINA FOR ANIMAL OR HUMAN FOOD USE DUE TO THE PRESENCE OF MELAMINE AND/OR MELAMINE ANALOGS”". U.S. Food and Drug Administration. 27 April 2007. http://web.archive.org/web/20071012074202/www.fda.gov/ora/fiars/ora_import_ia9929.html. Retrieved 2007-05-01. 

^ a b “Feds: Millions have eaten chickens fed tainted pet food”. CNN. 2 May 2007. http://www.cnn.com/2007/HEALTH/05/02/pet.food.poultry/index.html. Retrieved 2007-05-02. 

^ a b c d Andrew Martin (31 May 2007). “Poison used in China is found in U.S.-made animal feed”. The New York Times. http://www.iht.com/articles/2007/05/31/business/food.1-65273.php. Retrieved 2007-06-01. 

^ Telegraph

^

^ Swaminathan, Nikhil (28 March 2007). “Special Report: The Poisoning of Our Pets – Scientists and government agencies home in on the cause of more than 100 pet deaths from tainted food”. Scientific American. http://www.sciam.com/article.cfm?chanID=sa004&articleID=9AA80BDC-E7F2-99DF-325B0C8F34C09E95. Retrieved 2007-04-11. 

^ “Lab Gets New Attention in Pet Food Case”. Washington Post. 1 April 2007. http://www.washingtonpost.com/wp-dyn/content/article/2007/04/01/AR2007040100720.html. Retrieved 2007-04-11. 

^ Sage, Alexandria (2007-03-19). “Pet deaths expected to rise despite recall: FDA”. Reuters, Canada. http://ca.today.reuters.com/news/newsArticle.aspx?type=domesticNews&storyID=2007-03-19T225231Z_01_N19293241_RTRIDST_0_CANADA-PETFOOD-RECALL-COL.XML&archived=False. Retrieved 2007-04-11. 

^ a b c Barboza, David (23 April 2007). “China Yields to Inquiry on Pet Food”. New York Times. http://www.nytimes.com/2007/04/24/business/worldbusiness/24pets.html. Retrieved 2007-04-24. 

^ a b c “Fish meant for humans fed tainted food”. CNN. 8 May 2007. http://www.cnn.com/2007/HEALTH/05/08/fish.food/index.html. Retrieved 2007-05-07. 

^ a b AP (26 April 2007). “China Bans Melamine in Food Products”. New York Times. http://www.nytimes.com/aponline/world/AP-China-Pet-Food-Recall.html. Retrieved 2007-04-26. 

^ a b Delgado, Benna (9 April 2007). “UPDATE: Pet Food Recall Controversy Headed to U. S. Senate”. CaribJournal.com. http://caribjournal.com/2007/04/09/update-pet-food-recall-controversy-headed-to-u-s-senate/. Retrieved 2007-04-11. 

^ a b Abruzzese, Sarah (25 April 2007). “F.D.A. Says Livestock Were Fed Pet Food With Suspect Chemical”. New York Times. http://www.nytimes.com/2007/04/25/us/25petfood.html. Retrieved 2007-04-25. 

^ a b c d “FDA/USDA Joint News Release: Scientists Conclude Very Low Risk to Humans from Food Containing Melamine”. U.S. Department of Agriculture and U.S. Food and Drug Administration. 7 May 2007. http://web.archive.org/web/20071220001153/www.fda.gov/bbs/topics/NEWS/2007/NEW01629.html. Retrieved 2007-05-07. 

^ Weise, Elizabeth (30 March 2007). “Nestl Purina, Hills join pet food recall”. USA Today. http://www.usatoday.com/news/nation/2007-03-30-pet-food-recall_N.htm. Retrieved 2007-04-11. 

^ Schmit, Julie (17 April 2007). “Premium pet food company recalls dry foods”. USA Today. http://www.usatoday.com/money/industries/2007-04-17-premium-pet-food-recalled_N.htm. Retrieved 2007-04-17. 

^ Mawson, Nicola (20 April 2007). “South Africa: No More Chinese Take-Aways for SA Pets”. Business Day (Johannesburg). http://allafrica.com/stories/200704200140.html. Retrieved 2007-04-20. 

^ a b Swaminathan, Nikhil (25 April 2007). “Were Our Pets Deliberately Poisoned?”. Scientific American. http://www.sciam.com/article.cfm?articleID=2B10D1F6-E7F2-99DF-34DAAAC1622FE3CE&chanID=sa007. Retrieved 2007-04-26. 

^ a b “Natural Balance Pet Foods, Inc. Recalls Products in Response to American Nutrition Inc. Pet Food Recall”. http://www.naturalbalanceinc.com/press_release4_27_07.html. Retrieved 2007-04-28. 

^ “Canine Caviar Pet Food Recall Notice”. http://caninecaviar.com/. Retrieved 2007-04-29. 

^ a b “Diamond Pet Foods has announced it is withdrawing a limited number of canned products manufactured by American Nutrition”. http://www.chickensoupforthepetloverssoul.com/. Retrieved 2007-04-26. 

^ a b “Blue Buffalo Recalls Can and Biscuit Products Due To Tampering By American Nutrition Inc.”. http://www.bluebuff.com/company/news_070426.shtml. Retrieved 2007-04-26. 

^ a b “Harmony Farms Cans And Biscuits Recalled Due To Product Tampering”. http://harmonypetproducts.com/index…

Related “chinese Suppliers” Articles

Sources for goods in China

First establish who the supplier is! It seems obvious but there are many routes to buying products in China through agents, trading companies, wholesalers and factories or any number of “back door” sources. Agents operate on a commission basis whilst trading companies include costs in the quoted price, most wholesalers and factories do not have export approvals so have to operate through a registered agent or trading company to export to you at all.

In my experience almost every sales person that I have met in China who is not the owner of the business has shown interest in either setting up on his own by “stealing” his employer’s customers and product designs or simply doing his own deals on the side through friends, contacts or family.

On the internet there are many scams and dubious “traders”. But accepting that you are lucky or diligent enough to find a legitimate agent/trading company, you will find that Chinese business ethics are very different. Most Chinese friends and contacts, that I have spoken to on the subject, believe that ”cheating” is the name of the game for people in business.

Negotiating the price is an art form poorly practiced in the West in my view. Certainly in street purchases in China you may well think that you have done well to reduce the price first quoted by 20% or more (often the normal negotiating “add-on” is >50% in street markets) this figure can be very much higher for foreigners. Whilst the situation may be quite a bit different for more formal purchasing the principals are much the same.

But then there are all the “extras” like packing materials, printing and minor changes, inland costs etc which can be used to hike the price back up, or a possibly a worse scenario is the practice of cutting corners on materials and quality to regain the lost margin.

Having a good feel for the all inclusive price from a number of suppliers for the specific product you want gives you the purchasing power to negotiate and buy the right product from your selected supplier at a reasonable price hopefully without any “extras”.

Payment terms are more often than not 30% down payment with the residue on completion of manufacture. But beware the requests for payment in full with a money order through Western Union, these payments are to individuals and generally are not traceable once made. No terms, no security and probably no goods and only bitter experience to be gained !

Are the prices quoted ex-works, FOB, CIF, delivered warehouse – what has been agreed and who pays and at what stage ? Who raises the shipping documents, packing list and commercial invoice and will these documents enable you to clear the goods at the port of destination, assuming the goods exist in the first place never mind whether they are of merchantable quality when they arrive?

Developing long term relationships with a few suppliers who you know well pays dividends. Getting to this point with a new supplier needs extreme caution no matter what their pedigree until a personal relationship has developed but even then be careful. The supplier’s staff may also be offering your products to your customers or competitors at lower prices if they can find out who they are.

Products

Is there a specification? Has this been agreed with your supplier. Do they actually understand the specification ?

What sort of things do you need to specify ? Have you included labelling, marks, packaging including quality of cardboard etc as well as materials or components to be used, type and colours of paints and finishes, instructions in a language suitable for your client. Instructions in Chinese don’t go down too well in Europe. Also consider the tests to be conducted during manufacture and on completion. Do you need CE or RoHS approvals for importing electrical goods into Europe? If wood is contained in the product or the packing are fumigation certificates required ?

Does the supplier own the intellectual property rights of the product ? Don’t believe you can import well known international brands unless you intend to buy them from the brand owner. Gucci, Samsung or Philips or any owner of a well known brand certainly won’t allow a Chinese supplier to sell their branded products at low prices through the back door! China is probably the world’s largest source of fake or pirated goods with well known logos and branding on packaging that are simply copies or worse still just a logo stuck on a similar looking product.

Not only will there be little or no warranties but worse you risk serious legal action and possibly a criminal conviction if you cannot show proof of ownership of the brand name or an agreement exists from the brand owner when you import.

“This is Hertfordshire online” reported that a Tolworth man has been ordered by Kingston Crown Court to sell his flat and car to pay back £55,000. He was jailed for 12 months in March after building up a criminal business by importing fake designer clothes from India and selling them as genuine on eBay.

China exports to countries all over the world and to many third world countries and of course supplies the Chinese domestic market where quality standards of the West are unknown or irrelevant. The factory may be oblivious to relatively strict European Standards if they have never exported before or have not exported to the EU before. So it may not be a matter of cheating you they may simply just not know what is needed to comply with EU import regulations.

Likewise if they have not exported before they may have no idea how to comply with Chinese Export control regulations covering such things as foreign exchange, tax, licensing etc so whilst their intentions may be good the transaction may fail as they are unable to perform their part of the contract. This could mean that they can’t convert the foreign currency at a sensible rate, they misunderstood the costs and procedures for exporting the goods through a Chinese Trading company including transport, customs clearance, documentation, tax and duties etc. These things can slow the transaction by weeks or it may become impossible to perform the contract at the price agreed and the transaction fails. But you have paid your money and either the supplier has it or it is still with a Chinese bank who won’t release it.

As attractive as you may think that buying from China appears, the prospect of selling to the West by inexperienced employees in China sounds just too good to be true ! The end user prices blazoned across the internet by Western retailers are absolutely out of this world to a factory worker who receives probably no more than US0 or a salesman on US0 cash a month. The temptation to give exporting a try sounds just too tantalizing, it seems everything to gain and almost nothing to lose !!

Quality

ISO 9000 in my view is about applying common sense to the supply process of specifying and checking that what you order is what you get and is the basis for best practice.

If you don’t specify what you want your expectations are unlikely to be met ….. crystal balls don’t work too well even with the internet to help. Especially so when one party speaks English and the other is battling with Mandarin instead of his local Chinese dialect probably through an interpreter and with a very different technical and cultural background.

Products need to be specified in detail and cover such aspects as packaging and labeling, it then makes sense to get someone to check that what you have specified is understood and produced by the supplier before you release the final payment.

Suppliers in China, like anywhere else, come in many shapes and sizes, from huge State Owned Enterprises (SOEs) Joint Ventures (JVs) with Western and/or Asian partners, private companies, Wholly owned Foreign Enterprises (WFEs) and family businesses. It’s not going to benefit you by going to the biggest state owned group of factories in China if you intend to order only a few cartons a month. Likewise the small family business won’t cope, though they may say they will, with 20 or 30 containers a week.

The Chinese Way

I have often been told “ah! but we do it the Chinese way here”

I believe that one of the greatest difficulties for newcomers involved in importing from China is coming to terms with the fact that doing business in China is very different to doing business in the West. The thinking processes, ethics, morals, life experiences, expectations, culture, politics, laws, education, and government involvement in everyday business life is very very different and not at all easy to predict even by long in the tooth, experienced ex-patriates from the West let alone newcomers.

Here is as an insight to some different thinking from my personal experience.

In many factories in South and Eastern China shop floor employees are mostly migrant workers from poor rural areas. They speak their native language and may struggle to communicate with the city dwellers around them. Their living accommodation, food, clothing, recreation and welfare, such that it is, will normally be provided by the employer. The wages paid in cash are usually very low as a result. Workers may only travel home once a year. Normally there is no schooling available for migrant worker’s children in many of the big cities so money is sent home where the family is based.

Consequently the enterprise cost basis is very different to the West and would be considered more like an overhead than a variable cost in Western accounting terms. It is likely that the success of the factory, if of any size at all it will have direct government involvement, and may well be measured by the number of people employed rather than the financial performance.

Several Chinese friends have explained to me that discarding litter in the street provides jobs for those who have to pick it up and I sometimes really wonder if faulty product also creates those extra jobs too! A cynical viewpoint not to be taken too seriously but perhaps provides an inkling of possible different logic, value and thinking patterns.

Branded Products

Many very well known, high quality Branded products are made in China. Some of the largest and most successful manufacturers of Chinese products that are best known in the World are often made by Joint Ventures or Wholly owned Foreign Enterprises.

These products are manufactured to very high standards in factories with professional management and high levels of investment in plant, people and processes. The products are world class and sold and marketed by the Brand owner.

These Branded products are not legitimately available to non-approved importers and if they are offered to you in China they are undoubtedly fake copies or stolen or simply similar product with a famous logo attached. Chinese copyright law exists but has not yet caught up with the thousands upon thousands of companies that copy other’s products either unsolicited for domestic or export consumption or as requested by foreign importers.

Don’t be fooled….. it is illegal to import or sell these products in Europe and a criminal offence with severe sentences and penalties

Summary

Whilst you may have got some very negative vibes from this article that is not my intent. The future for manufacturing is in China. Business is done very successfully here by resourceful, competent very able and very willing business partners that really want to make it happen for you and themselves in the long term and on a reliable and successful basis.

My intent is to add to your awareness of how different things may be, just don’t throw away common sense with your enthusiasm. Others make it happen so can you !

Related “chinese Suppliers” Articles

In the last three weeks a very important event took place that has been overlooked and misunderstood in the financial sector.

The United States and the European Union have filed complaints against China at the World Trade Organization (WTO) on June 23 accusing Beijing of placing export restrictions on raw materials and partially processed raw materials critical to many industries. The nine materials cited by the United States are bauxite, coke, fluorspar, magnesium, manganese, silicon carbide, silicon metal, yellow phosphorus and zinc. The complaint accuses China of restricting exports, thus creating an unfair advantage by contributing to disparities in prices of these precursor materials inside and outside China. The European Union also complained that the restrictions could undercut some 4 per cent of European industrial production if the resources are no longer easily accessible from Chinese suppliers.

For years China has taken a long term approach in the planning, design and procurement of natural resources which will propel their Country into the 21st Century. All bought and paid for with hyper-inflated dollars courtesy of the Western World. China knows the dollars’ days are numbered and they must liquidate the once preferred reserve asset before it eventually collapses leaving them with nothing but worthless paper.

For decades the US has taken advantage of third world countries by consuming their natural resources in lieu of developing their own domestic supply. The US has had a “free ride” in the plunder of resources from around the world. It became too easy to substitute the purchase of cheap foreign resources in lieu of developing a dependable supply at home. The higher costs and environmental red tape associated with the domestic development of these resources made foreign development a no brainier since costs were dirt cheap and red tape did not exist.

The US is soon coming face to face with the reality that just because they “used” to be the single largest demand for foreign natural resources does not mean they are entitled to those natural resources as their own. It is easy to see why certain people in the US feel they are “entitled” to certain privileges and a way of life they have not earned; they had a good teacher in Uncle Sam.

Never underestimate the thinking of the Chinese manufacturers. While the rest of the world has been licking its financial wounds China has been out acquiring inventories of the natural resources and rare earth minerals they need at fire sale prices today.

Imagine the demand for resources from an awakening country with a population of 1.3+ billion people. Do not forget about the needs of India and others who also want to share in the way of life you and I once took for granted.

BY MIKE HOY 

Fri, 12 Sep 2008 11:59:00 NTDTV ZHANG: And yet another food scandal rocks China. This time, the victims are babies. Here’s more. STORY: Now Chinese Dairy giant The Sanlu Group has issued an immediate recall of milk formula made before August 6, which was apparently tainted with melamine — an ingredient in plastics, fertilizers, and cleaning products.. It was unclear whether any of the problem formula had been exported. On Thursday the US Food and Drug Administration warned consumers not to buy or use baby formula from China, which is already banned in the US In the past, Chinese suppliers have also used melamine illegally in animal feed to bolster its apparent protein content. In 2004, at least thirteen babies in Anhui province died after drinking fake milk powder that investigators later found had no nutritional value at all
Video Rating: 3 / 5

July 23 (Bloomberg) — Japan’s exports fell in June at the slowest pace this year as demand picked up worldwide, helping the trade surplus widen for the first time in 20 months and setting the stage for an economic recovery.

Shipments abroad declined 35.7 percent from a year earlier, after dropping 40.9 percent in May, the Finance Ministry said today in Tokyo. The surplus widened to 508 billion yen (.4 billion).

Faster growth in China is propping up sales for Japanese manufacturers including Komatsu Ltd. and Nissan Motor Co. The recovery in shipments from the record collapse spurred by the financial crisis probably helped the economy grow for the first time in more than a year last quarter.

“There’s no doubt China has been a driving force for Japan’s exports,” said Masamichi Adachi, senior economist at JPMorgan Chase & Co. in Tokyo. “Chinese manufacturers will probably continue to increase production amid the improvement in exports, and that’s good for the economic outlook.”

Economy Grows

Demand picked up in all regions. Exports to China fell 23.7 percent last month from a year earlier, the smallest drop since October. Shipments to the U.S. declined 37.6 percent, the least since December, and sales to Europe slid 41.4 percent, also the best this year.

The International Monetary Fund said this month the global economic rebound next year will be stronger than it predicted in April, raising its forecast for world growth to 2.5 percent for 2010 from an April estimate of 1.9 percent.

China, which grew 7.9 percent last quarter, has surpassed the U.S. as Japan’s biggest export customer. Government subsidies to encourage consumer spending and investment in building projects have benefited Japanese manufacturers.

Most Important

“The bottom line is that China’s strong growth will continue to drive Japan’s exports,” said Kiichi Murashima, chief economist at Nikko Citigroup Ltd. in Tokyo. “Exports are the single most important factor for the economic outlook.”

Tokyo-based Komatsu, the world’s second-biggest maker of earthmovers, said last month its sales in China probably beat expectations in the quarter ended June 30. The company expects the market to grow to about 15 percent of total sales this business year, compared with 10 percent in 2008.

Nissan, whose Chinese suppliers sales rose 18 percent in the first five months of the year, will have to increase shipments of engines and transmissions from Japan to feed higher output at its factories in Guangzhou and Hubei, according to Tokyo-based spokeswoman Pauline Kee.

Japan will still need demand to pick up from the U.S. and elsewhere because about half of Japan’s exports to China are parts and materials used to make China wholesale products that are re-exported, according to Nikko Citigroup’s Murashima.

The central bank will release a report later today showing trade volumes on a month-on-month basis, data which correlates closely with the export component of GDP, according to London- based Capital Economics Ltd.

 By Jason Clenfield and Kyoko Shimodoi

Scammers in mainland china are rampant and I was one of its victims. Dont trust suppliers from alibaba.com, madeinchina.com, made-in-china.com, china.cn (yuanda international trade co., ltd) who was listed from those Chinese websites they were doing fraudulent act, to scam people around the world. They have a new modus operandi, selling alleged brand goods with lower price and bargaining buyers to pay half of its price to lure buyers trust and confidence. the only safe and secured form of payment is thru “PayPal” never ever accept payment using western union, T/T, bank transfer. I bought a Nikon d90 with 18-105mm VR lens including shipment to yuanda international trade co., ltd. I talk with Jacob the agent and he said to gain trust he will allow me to pay first 5usd as first payment, then upon I received the item I will pay the remaining balance, then he even ask me for my passport, drivers license and social security ids to be scanned and emailed to him, as for his security that I will sure pay the remaining balance, perhaps now they were using my ids picture in their next scam. This is the new modus of these scammers. at first almost everyday they were online, you will received messages from your emails and messengers, but when the time I gave the western union MTCN you will received 1 or 2 messages with regards to your tracking number to put the buyer at ease, then you will never see them online again and their websites are gone. Then when the time you received the …
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