Could a New Zealand dairy trader have done more to prevent China's milk scandal? At press time, Sanlu Group milk products contaminated with the toxic chemical melamine had killed four babies, sickened 53,000 and triggered import bans and recalls worldwide. But 43 percent of Sanlu is owned by New Zealand cooperative Fonterra, the world's biggest dairy trader, and Fonterra has three people on the seven-member Sanlu board. Still, Fonterra executives were in the dark about the mass poisoning until August—eight months after their Sanlu partners found out. Once in the loop, they failed to persuade Sanlu to go public for six weeks. "Fonterra," says Paul French, chief China analyst for the Shanghai-based consultancy Access Asia, "apparently believed all the … books in which foreign executives are taught not to let their Chinese partners get offended or 'lose face'."Indeed, Fonterra took pride in its "trust-based" relationship with Sanlu, which became a joint-venture partner in 2005. That trust, evidently, was misplaced. Fonterra chief executive Andrew Ferrier says his people first learned about the melamine—which was added by independent milk collectors to disguise watered-down product—at a Sanlu board meeting Aug. 2. Instead of going public, Ferrier decided to try working "within the system" and reach a consensus with the Chinese about how to get the most tainted milk possible out of stores and homes. But local Chinese officials fretted that antigovernment anger might endanger "social stability" during the Aug. 8 to 24 Beijing Olympics. Sanlu chairwoman Tian Wenhua was a local Communist Party secretary, meaning she would have known about decrees that sensitive topics—especially food-safety concerns—were taboo during the Games. Fonterra executives told New Zealand Embassy diplomats about the poisoning on Aug. 14, and they informed the Kiwi government in Wellington, which in turn alerted Beijing on Sept. 9. The Chinese central government went public two days later.Ferrier told NEWSWEEK that Fonterra acted correctly and "it had nothing to do with face." But at the least, its executives were naive not to consider the possibility of a Sanlu cover-up, especially in light of so many recent Chinese export scandals. "We can all be sensitive about not letting Chinese partners feel offended," says French. "But when it's a matter of life and death, you have to draw the line."

We have sold our soul to the Chinese for cheap Wal-mart merchandise. No one is going to stand up to China, especially now that we are in debt up to our ears. Confucius say, man who stand in front of tank, get run over.

I read Newsweek daily and have decided to stop reading anything writen by Ms. Melinda Liu.

I read Newsweek daily and have decided to stop reading anything writen by Ms. Melinda Liu. I do want my mind less polluted.

To cleanse your mind and soul, say 1,000 Hail Mary's, wash your hands 500 times and give yourself 50 lashes with a cat of nine tail. This will purify your mind and cleanse your soul. Then go stick your head in the sand.

It is sad that many children has been hurt or killed due to tthe toxic milk and due to the his face saving delay. it is a hard lession to learn for China. Things happen had happen. The Sanlu company, the Chinese community and the rest of the world should be complete take actions to prevent any food poisten to happen. Also, should it have to happen, the correct action is not to delay or ignor, rather, one should warn the public so that more poeple can be save.

It is so sad that many baby had been hurt or had been kill by the toxic milk (and related product) or due to the delay to warning to the public at once. Delay is for "face saving'???..It is a hard lesson to learn for the Chinese community. We just wish that everyone should learn from this insident. Hard and effective actions should be taken to prevent any toxic food from making from now, and , if that (food issue) should happen, it is the duty of all to warn the public at once!!. Last, if one could, we should reach out and give a heling hand to the victim the milk poison, most of them are babies fromp low income family.

Where are all of the chinese defenders and nationalist who went to great lengths to shout down people who brought up human rights issues within China (including Tibet - by the way -if Tibet was part of Chinese for a long time - Why are they not called Chinese?) . Don't they realise that the govt that does this to minorities has the good propensity to do the same to it's own people.

Talk about LOSING FACE BIG TIME

Basic concept of Chinese business: If you ain't lying, you ain't trying They might say: In a revolution, grab everything that you can. The principle is, the Chinese use Face as a way to intimidate foreigners. They don't get upset about their own duplicity, they get upset that anyone would confront them. This is not a pre-Communist value, it is a harsh response to the abuse of human rights for the last 60 years.

This is why we say, the truth hurts or no brains no pains. Chinese people who have the opportunity to read this will never understand how little they have been told by the Communist Party. Search Tianmen Square and try to understand why no lesson has ever been taught anywhere in China on the slaughter by the Chinese Army there

it is a little thing