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.