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China's Reputation On Product Safety Reaches a New Low
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The stock price of three of China's largest dairy companies rose Monday in trading in Hong Kong and Shanghai, after government tests cleared some of their products of contamination.
Complaints by parents about sick children first surfaced last December in Shijiazhuang, the capital of Hebei province. Doctors there also issued warnings.
But the scandal did not become public until Sept. 11 when a journalist posted an item on a Chinese social Web site about the sick children. It mentioned Sanlu Dairy Co., a 50-year-old firm that health officials say covered up the complaints of worried parents.
Hundreds of police officers have since conducted raids on pastures, breeding farms and milk-purchasing stations in the Shijiazhuang area.
The Agriculture Ministry said over the weekend that it was trying to help dairy farmers whose businesses have been ruined by collapsing demand for milk. In a statement posted on its Web site, the ministry said: "On the one hand, we must crack down on illegal behavior, but on the other hand we must protect the interests of the dairy sector."
Special correspondent Akiko Yamamoto contributed to this report.
