Complicit court system in China's melamine milk scandal PDF Print E-mail
Written by Stumo   
Friday, 17 October 2008

An independent and effective court system is essential to making an economy work well.  Closed door tribunals in China, staffed by "judges" in the pockets of a political party, are an impediment not only to capitalism but to democracy.  Kind of like the closed door tribunals of the WTO which America, with its proud judiciary tradition, oddly consented to.

A family whose baby died from melamine poisoned milk filed suit in China.  Seeking justice.

The parents filed a lawsuit on Monday in the arid northwest province of Gansu, where the family lives, asking for compensation from Sanlu Group, the maker of the powdered baby formula that Kaixuan had been drinking. It seemed like a clear-cut liability case; since last month, Sanlu has been at the center of China’s biggest contaminated food crisis in years. But as in two other courts dealing with related lawsuits, judges have so far declined to hear the case. ...

Some lawyers and judges are making great efforts in China to establish the power of the courts. Still, courts often remain passive pawns in the party’s efforts to handle big disputes behind closed doors.

This is what happened to the baby.

The first sign of trouble was powder in the baby’s urine. Then there was blood. By the time the parents took their son to the hospital, he had no urine at all.  Kidney stones were the problem, doctors told the parents. The baby died on May 1 in the hospital, just two weeks after the first symptoms appeared. His name was Yi Kaixuan. He was 6 months old. 

Justice is trumped by economic development.

Chinese officials, under pressure to promote fast rates of economic growth and to enforce social stability, routinely favor producers over consumers. Product liability lawsuits remain difficult to file and harder still to win, especially if the company involved is state-owned or has close connections to the government.

Officials also view high-profile lawsuits as a potential political threat and go to great lengths to silence the plaintiffs rather than allowing the wheels of justice to turn. In the milk crisis, officials in several provinces have put pressure on many involved, including parents, lawyers and judges, to drop the issue, said legal scholars and lawyers who have volunteered to help the parents.

The rule of law is basic to international trade and domestic commerce.  You must be able to enforce treaties and contracts.  When a business puts an item in the stream of commerce, the product must be safe when used as intended.  Otherwise you get bad results... like China.

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written by bob johns , October 18, 2008
Anyone doing business in or with China should be keenly aware of how the game is rigged. The US seems to have little stomach to correct these issues the only way it can - via market access here. When our health & safety is compromised, like it has been so many times, one might think it is the duty for the US government to respond swiftly and decisively. But that would imply certain politicains could afford to ignore massive Chinese support in their effort to buy our government. Oh, well. Someone may opine we'd lose trade with China. Take a look at the imbalance. It is a relationship we can afford to alter.
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