After last month’s scandal with unlicensed vaccine dealer, which ended up punishment of over 350 officials, China Food and Drug Administration (CFDA) conducts another executive decision to protect consumers by banning potentially harmful goods from the market.

Qinghai Spring Medicinal Resources Technology Co. Ltd., producer of traditional Chinese medicine nutritional supplements has been ordered by the authorities to suspend its production and distribution of products. In February, the CFDA issued a statement that is has found excessive levels of arsenic in products made from a plant known as caterpillar fungus (one of the most expensive and sought after ingredients in Traditional Chinese medicine found only on the Tibetan plateau) – Yartsa gunbu, which is the Tibetan name of this plant is so highly valued as a medicine that it often sells for more than its weight in the metal.

Chinese Food safety standards allow only one milligram of toxic arsenic per kilogram of the fungus, but the levels found during the CFDA investigation were four to 10 times higher than this. According to the World Health Organization, consuming products with arsenic over a long period could lead to cancer.

Qinghai Spring Company first attacked the CFDA claims saying it lacks tangible evidence and creates false accusations. The food and drug authority responded to this by publishing the list of problematic products.

Smaller scale food scandals are a common occurrence in China, but in light of the widely known melamine scandal as well the relevant officials need to be very cautious and act promptly upon discovering and divergences from the standards. Qinghai Spring had to suspend its business operation and trading on the Shanghai Stock Exchange indefinitely and so especially for small and medium sized companies, such problems would be devastating.

Sources:

«Food Regulator Shuts Down Popular Herbal Supplement Maker», Caixin Online, english.caixin.com/2016-04-01/100927752.html

«China’s Food Fright» Caixin Online, english.caixin.com/2012-06-20/100402817.html

«Impact Analysis: China Food Safety Testing Market & Regulations – Global Forecasts to 2020», PR Newswire, www.prnewswire.com/news-releases/impact-analysis-china-food-safety-testing-market–regulations—global-forecasts-to-2020-300249386.html

«The emperor’s mighty brother», The Economist, www.economist.com/news/christmas-specials/21683980-demand-aphrodisiac-has-brought-unprecedented-wealth-rural-tibetand-trouble

Annex Asia Publishingpublishing@annexasia.com

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