Understanding China, One Blog at a Time

An American in China

Chinese Milk, Come and Get It….China’s Synutra Once Tainted with Melamine Now Implicated in ‘Baby Breasts’

Posted by w_thames_the_d on August 16, 2010

That Chinese comany Syntura, who was ‘allegedly’ involved in the ‘alleged’ case of selling food that made young Chinese babies aged 4 to 15 months grow breasts, and not one year ago was part of China’s toxic milk scandal, is actually a publicly traded company on the NASDAQ. The company sells under the names :Super, U-Smart, and Helanruniu or Holsteina , but I do not know if they sell in the USA.
In any event, this is quite scary and shows a few things. One, how prevalent the problems in some of China’s manufacturing are, and the potential for health risks in their products to the world as a whole. It also shows how the Chinese are now embedding themselves into the overseas markets ie. NASDAQ, to obtain dollars, and yet we in the US potentially have little or no idea nor insight into how these companies truly operate. Lastly, and most worrisome is the fact that they have been found not guilty of any wrongdoing. The last point may take some explaining.
Why, you may ask, is this a bad thing? It has to do with credibility and transparency in Chinese companies. Remember the toxic milk scandal? It actually started before the Olympics but was swept under the rug then supposedly dealt with. Then last year and again this year, the toxic milk was found again, meaning that the problem was never properly dealt with. So, when we hear that this company was exonerated, what does it truly mean? Can we really trust the Chinese agencies who report that this company was not at fault, didnt we hear that about the mela-milk? I hope that it is true, and that this was all a big misunderstanding, but…

To me the sad thing is that we all invest in stocks with a certain amount of trust in our markets and the people running our companies. We are betting our retirement money and future ability to live on them. It is bad enough when you have Americans playing games with our stocks, but at least we have a level of oversight, but when dealing with the Chinese, what do we know and what can we do?
To me, the last point is the scariest thing of all.
As for me, I live here, I do not drink milk and actually have curtailed my meat intake of all kinds, due to what friends have told me about the meat products here.

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