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Trial Begins in China's Melamine Scandal

By Mike Adams, December 26, 2008 | Key concepts: Melamine, Powdered milk and China

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The company in China responsible for selling melamine-tainted milk powder that sickened nearly 300,000 children is now bankrupt, Reuters reports. It is $160 million in debt and nobody wants to buy its products anymore. (Too bad it isn't a U.S. corporation, or it could get rescued by the Federal Reserve, huh?)

Now, six people in China are being put on trial for their role in the melamine scandal, including one that knowingly sold more than 600 tons of melamine to the Sanlu dairy producer, which processed it into powdered milk.

Several have already admitted their role in the melamine scandal, meaning the courts need only decide the punishment for their crimes. As the death penalty is alive and well in China, it remains possible that the melamine criminals could be sentenced to death for their roles in not just poisoning hundreds of thousands of children, but also in causing the erosion of faith in Chinese-made products around the world.

China's exports have plummeted since the melamine scandal, and dozens of factories have been shut down. Of course, the drop in exports is also strongly related to the collapse of consumer demand in the U.S. economy, not just the melamine scandal.

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Trial Begins in China's Melamine Scandal


From Google.com: Police say Zhang Yujun, 40, ran a workshop on the outskirts of Jinan in eastern Shandong province that manufactured and sold a "protein powder" composed mainly of melamine and malt dextrin, the official Xinhua News Agency reported. The powder was added to watered-down milk to make it appear higher in protein content.... more

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