| Until recently Zheng Xiaou was head of the State | | | | headlines on a weekly basis. From pet foods to |
| Food and Drugs Administration for China. He was | | | | tainted poisonous toothpaste, China has problems |
| arrested in May, and charged with being responsible | | | | across the board. Tires have been manufactured |
| for the sale of six different medicines manufactured | | | | lacking normal safety features. Other problems have |
| in China. These same six medicines were fakes. The | | | | included milk powder being faked. Several babies died |
| sales took place during Zheng's six years as the head | | | | as a result of its consumption. They even used a |
| of the department. One of the medicines was a gall | | | | cancer-causing dye for the coloring of egg yolks. |
| bladder medication. It contained inappropriate | | | | Coupled with these product safety issues is an |
| ingredients. It was consequently established that | | | | inflexible political system still based on communist |
| several people (five) died as a result of using the pills. | | | | ideology? This cannot continue indefinitely. No |
| Unlike many other countries, a figure like Zheng Xiaou | | | | economic system in history can go through rapid |
| would be arrested, given a trial that would take five | | | | economic growth and at the same time maintain an |
| years, and then perhaps spend some time in prison. | | | | inflexible political system, not based on the rule of |
| In China he was executed a couple of weeks ago, | | | | law. It has never happened before, and it is not going |
| less than 2 months after his arrest. Zheng was | | | | to work now. What's News HERE is not News in |
| convicted of taking over $800,000 in brides from | | | | China!!! The problems taking place in China are not |
| eight different pharmaceutical companies. What's | | | | news to those living in China. These issues have been |
| Happening Here? China is finding itself in the same | | | | going on for quite a while, and run much deeper than |
| position that Japan was in the 1970's. Back then, | | | | the executions of a few top officials. Take China's |
| Japan was industrializing, and having massive quality | | | | coalmines as an example. Thousands of Chinese |
| control problems. This went on for years. There was | | | | workers die every year in China's mines because of |
| a time that "Made in Japan" meant a product that | | | | poor safety conditions. There is not a single coalmine |
| was inexpensive (cheap) with terrible quality. Over a | | | | in America that would tolerate China's safety |
| period of 20 years, the Japanese mastered quality | | | | standards. There is an absence of ethical standards, |
| control, thanks to the works of Dr. W. Edwards | | | | promulgated by an insatiable desire to chase dollars, |
| Deming, the man who understood quality processes | | | | with no consideration for the lives of workers. For |
| better than any other American. The Americans didn't | | | | more on this topic, please visit our website. |
| listen to him, but the Japanese treated him like a God. | | | | Richard Stoyeck's background includes being a limited |
| The rest they say is history. Now China finds itself in | | | | partner at Bear Stearns, Senior VP at Lehman |
| the same position as Japan in the 1970's but there | | | | Brothers, Kuhn Loeb, Arthur Andersen, and KPMG. |
| are differences. Rapid industrialization in China without | | | | Educated at Pace University, NYU, and Harvard |
| the proper Deming type systems in place is leading | | | | University, today he runs Rockefeller Capital Partners |
| to quality control problems that are now making | | | | and Value Investing at StocksAtBottom. |