18th October 08

Sydney Morning Herald

The East is in the Red: the white-knuckle ride begins

Australia has been riding the boom created by China's appetite for resources, but the Asian giant is running out of steam. The trees at West Rock Village are mostly dead and the streets are caked in dust and clogged with gritty factory haze. But the villagers are not worried about pollution; they are scared that one day soon it might all blow away. They knew well before the outside world that the factory was in trouble and China's steel-driven economy was on the slide. "If the factory goes down, my daughter, my husband and my son will all be unemployed,'' says 59-year-old grandmother Han Chunwen.

International Herald Tribune

Lawsuits in China's milk scandal unlikely to be settled in court
 
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.

Asia Times Online

China confident in storm
By John Ng

HONG KONG - The continued growth of China's foreign exchange reserves, which reached a record of more than US$1.9 trillion at the end of September, is boosting the country's confidence that it can maintain stability as the international financial crisis widens and deepens. China's not fully convertible currency, its huge foreign reserves and relatively fast economic growth have formed a great barrier against the financial troubles elsewhere, Justin Yifu Lin, the World Bank's chief economist and senior vice president, said recently.

Comments

[Cathy Doheny]

In regards to the milk scandal- We were advised by the American Academy of Pedicatrics to have all children adopted from China after 2005 tested for exposure. We took Jade on Friday to get bloodwork done, after she had an abnormal urinalysis. I am very worried, as I know for sure that her orphanage used this brand of formula. I wonder what will happen when those outside of China are effected by the scandal and begin to come forward. It will be interesting to see how it all unfolds.

[Zhou Xiaosui]

It is already testing China's legal system, as another article points out. It would be an interesting test of international law. The action would be in tort, and I am not sure if that is within the (practical) jurisdiction of any international court. After all, how would any adverse finding be enforced? This will indeed be a test for China as it engages with the rest of the world.