Let me be clear from the beginning. I’m an enthusiastic advocate of globalization and free trade, see clear benefits for investors, companies, and consumers.
Nonetheless, I cannot help but add my voice to all concerned about a peculiar trade between the US and China that followed China’s entry to WTO and received the blessings of USDA recently he export of American-raised chicken to China for processing and then re-import to America.
First, I cannot see any clear economic benefits of this trade for American consumers and profits from the trade be limited or eliminated unless there is a secret element the trade that makes it extremely profitable.eat processing is a highly automated process. Add transportation time and costs
Second, I can see many obscure costs when it comes to the quality of processed food both inside and outside China from tainted food, medicine, and personal careevidenced by scores of stories of people getting seriously sick
To be fair, stories of tainted food aren’t unique to China. America has its own share. But there is a clear difference here: in the US, most cases of tainted food appear to be accidental
n China they appear to be the result of ruthless profiteering.
There is a good explanation for t, in our opinion tainted perception of capitalism by unscrupulous entrepreneurs who see the country’s emerging capitalism as a get-rich quick platform rather than a mechanism delivering consumer value creating wealth in the process.
That’s why there is widespread mistrust among Mainland Chinese for domestically processed food products. Just ride the train from Hong sland back to Shenzhen one Saturday evening and you will see Mainland Chinese carrying back all sorts of processed products, especially baby formula, which has been the target of ruthless profiteers.
In view of these considerations, I cannot help but ask whether the USDA really approved this trade… and what sort of assurances can be givento the American consumer that processed chicken coming out of China isn’t tainted.