The concerning thing about Cadbury’s recall of its chocolates made with milk tainted with melamine is that all of the dairy suppliers to Cadbury’s Beijing plant had earlier been given the all-clear by the Chinese testing. It was the company’s own tests that uncovered the traces of melamine, although the source and extent is not yet clear. ‘We have received results that cast doubt on the integrity of a range of our products manufactured in China,” the company said.
Cadbury has recalled 11 products sold in Taiwan, Hong Kong and Australia.
With the Shenzhou VII mission safely and jubilantly returned to Earth, the FT reports how China’s air traffic controllers grounded civil airliners for the launch of the mission without notice, only the latest sudden and unexplained delay to flights by the Civil Aviation Administration of China when the PLA wants clear skies.
Filed under Space, Transport
Warren Buffett knows a smart deal in China when he sees one. He came away from a $488 million investment in PetroChina in 2002/03 with a $3.5 billion profit in 2007 (see Buffett On PetroChina). Now he is putting down $231 million for a 10% stake in BYD Co., China’s largest maker of rechargeable batteries (Announcement).
The investment will be held through Buffett’s MidAmerican Energy Holdings Co. BYD is based in Shenzhen and has 130,000 employees around the world. Its stock is listed just down the road on the Hong Kong Stock Exchange. It had sales of $1.8 billion in the six months to June, two thirds of which were in China. The company’s chairman, Wang Chuanfu says the deal will help give BYD greater access to global markets, particularly for its electric vehicles.
Green all round, I’l bet.
It was shorter than expected, 13 mins, but a spacewalk nonetheless, and the latest milestone in China’s fast advancing space program.
Astronaut Zhai Zhigang, floated out of Shenzhou 7’s orbital module on Saturday afternoon, and at one point waved a Chinese flag. Xinhua has lots of coverage, including pictures of Zhai and flag (How do you get a flag to wave in space, by the way?).
The next milestone is assembling a space station from two Shenzhou orbital modules. Then lunar exploration including putting a man on the moon, possibly ahead of the Americans’ planned return in 2020.
Saturday’s spacewalk was shown live on state TV and watched at a Beijing command center by top party officials, including President Hu Jintao.
The space program provides a patriotic diversion from the tainted milk scandal, which has taken some of the bloom off the glories of the Beijing Olympics ahead of what promises to be a contentious party plenum due to follow the Oct. 1 National Day celebrations. (I commend China Brief‘s curtain raiser on the meeting to those interested.)
It is less than 48 hours since a senior official said the problems with tainted dairy products were under control. Since then the E.U., India, France and South Korea have joined the ranks of those imposing restrictions on Chinese milk and dairy related imports, the maker of White Rabbit candy has issued a product recall, Japan’s Lotte Group has removed its popular chocolate-filled Koala-shaped cookies, which are made in Macau, from Hong Kong supermarket shelves, and there have been reports of baby zoo animals developing kidney stones after being fed melamine contaminated milk.
China’s exports of dairy products are modest, worth $232 million last year, but the danger to Chinese exporters lies in collateral damage to all food exports on the grounds that the lax health and safety standards uncovered in the dairy industry will be thought to be widespread. Government-to-government negotiations to allow cooked chicken exports to the U.S. for the first time are likely to be stalled because of the milk scandal.
Meanwhile, the scandal has brought down its first government minister, but in Taiwan. Lin Fang-yue, the island’s health minister, said he would resign in face of public outrage that the government would allow sales of Chinese milk products with low levels of melamine.
Xinhua’s web site ran a detailed report Thursday on the successful launch of the Shenzhou 7 space mission, including snatches of dialogue between the astronauts. Only problem was the story was posted hours before lift off. An Associated Press report on the snafu. And another on the actual successful launch is here.
Venezuelan president Hugo Chavez would like to sell more of his country’s oil to China and less to the U.S.
Venezuela sold Beijing 38 million barrels in the first seven months of this year, almost double last year’s sales, despite the logistics difficulties of shipping it. Chavez, now visiting Beijing, says Venezuela could be sending China 1 million barrels a day by 2012. Overall trade between the two countries is expected to top $8 billion this year, up from less than $200m a decade ago.
During the three-day state visit, a stop off on trips also taking in Havana and Moscow, the two countries announced they would build two refineries, one in each country, capable of processing Venezuela’s heavy crudes that China currently has to blend with lighter crudes to refine, or sell on.
Meanwhile, Chavez has to settle for the fact that he is dependent on the U.S. he so detests to buy half Venezuela’s oil.