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China Has Cornered the Global Market for Vitamins
The News-Sentinel (Fort Wayne, Indiana) ^ | May 31, 2007 | By Tim Johnson

Posted on 05/31/2007 5:20:49 PM PDT by JACKRUSSELL

SHIJIAZHUANG, China - If you pop a vitamin C tablet in your mouth, it's a good bet it came from China. Indeed, many of the world's vitamins are now made in China.

In less than a decade, China has captured 90 percent of the U.S. market for vitamin C, driving almost everyone else out of business.

Chinese pharmaceutical companies also have taken over much of the world market in the production of antibiotics, analgesics, enzymes and primary amino acids. According to an industry group, China makes 70 percent of the world's penicillin, 50 percent of its aspirin and 35 percent of its acetaminophen (often sold under the brand name Tylenol), as well as the bulk of vitamins A, B12, C and E.

In the wake of a pet food scandal, in which adulterated wheat gluten from China led to the deaths of thousands of pets in North America, and other instances of food and toothpaste tampering, China's vitamin producers are reaching out to reassure U.S. consumers that their vitamins are safe.

Whether that's true isn't clear, however. Foreign food-safety experts say China's larger companies have reputations to protect. The question is how they maintain quality control.

In this pharmaceutical hub, a two-hour train ride south of Beijing, managers at what may be the world's largest vitamin C factory said they're constantly improving quality control to keep pace with the tenfold increase in production this decade.

"We used to only comply with domestic standards. Now we must comply with international standards," said Liu Lifeng, an aide to the general manager at the Weisheng Pharmaceutical Co. Ltd.

Food and drug safety inspectors drop in at the plant from time to time.

"The authorities come unexpectedly without telling us," added Tian Yumiao, the senior director of the quality control department of Weisheng.

But the inspectors aren't exactly neutral guardians of public health. They work for the city government, which is a part owner of the parent company of Weisheng Pharmaceutical. That kind of relationship between food and drug inspectors and China's booming agricultural and pharmaceutical industries is coming to the fore as an issue in the food safety debate. The local government in this thriving city of 2 million people would suffer if it did anything to hurt the growth of local vitamin and drug producers, and local officials might be reluctant to admit that a public safety issue had arisen.

"That's a conflict of interest right there," said Kathryn Boor, a food safety expert at Cornell University. "You really need a disinterested party involved in inspections."

Issues of food and drug safety ripple across China today. The former chief of the state Food and Drug Administration, Zheng Xiaoyu, was given the death sentence Tuesday for taking $832,000 in bribes to let unsafe drugs on the market. One Zheng aide was sentenced to a 15-year jail term last autumn, and a second was accused in May in the bribery scandal.

A survey earlier this year said more than three-fifths of Chinese worry about whether the food they eat is contaminated or adulterated.

Observers of China's food and dietary supplements industry say many larger companies, such as Weisheng, are well-managed and obtain key global certifications.

At the sprawling Weisheng plant, uniformed employees bustle about on neatly swept walkways, entering production areas where assembly lines purr. Machinery seemed clean, although managers barred a visitor from taking photographs in factory areas. Only minor odors emanated from a water recycling area. "The industry in China is bifurcated between top-notch companies that are highly skilled and do all the right things, and the second- and third-tier producers, some of which are just sloppy bucket shops," said Peter Kovacs, a food industry consultant based in Incline Village, Nev.

Foreign brokers concur that the low end of China's market has severe problems. "Sometimes you enter a factory, and you say, `I can't believe they produce food here.' It's dirty and the machines are old," said Jan Willem Roben of Vision Ingredients in Shanghai, a broker of food additives for export.

Since U.S. laws don't require food and drug sellers to label products with the country of origin of ingredients, it's impossible for consumers to know where food or supplements are coming from, not to mention what factory produced them. Vitamins fall into an area in China that straddles the food industry, comprising some 2 million businesses that exported $2.5 billion worth of goods last year, and the drug industry, which has 5,000 companies. Cases of adulterated or mislabeled products have hit both food and drug companies.

Fake drugs to treat impotency and help with weight loss are legion in China. Some African nations complain of fake Chinese medicines hitting their pharmacy shelves. Shady small pharmaceutical firms have exported bogus anti-malaria medication to Southeast Asia, where the illness is prevalent, allowing sick people to grow sicker.

"We really believe they are criminals," said Dr. Henk Bekedam, chief of the World Health Organization office in China, referring to producers of fake medicines.

Cheap labor has given China Inc. its edge in manufacturing. But pharmaceutical laboratories, which aren't labor intensive, benefit from subsidized rates on water and energy consumption, and often-lax oversight of environmental rules.

China's entry into vitamin C involved ingenuity - and an unwitting assist from the U.S. Department of Justice. In the late 1970s and early 1980s, several big Chinese drug companies, working with the government-backed Chinese Academy of Sciences, devised a method to cut the normal five-step process for making vitamin C to a two-step fermentation process, leaving European, U.S. and Japanese firms a step behind.

The new method cut costs and gave China a manufacturing edge. It wasn't until 1997, when U.S. attorneys broke up what they said was a price-fixing cartel of European and Japanese producers, that the door swung wide open for the Chinese producers.

Firms such as Weisheng, which had planned to produce 3,000 tons of vitamin C a year, stepped up its capacity to 30,000 tons a year by mid-2004, which it claims is the largest in the world. Another company across the city, Hebei Welcome Pharmaceutical Co. Ltd., has a capacity of 20,000 tons a year. Together, the two companies make nearly half of the annual world production. "The Chinese did a good job in this. They used their existing know-how and leveraged it in a clever way," said Alexander Filz, a spokesman for DSM, a Dutch chemical, nutritional and pharmaceutical company, which is the sole competition in Europe for vitamin C production.

But then Weisheng and three other big vitamin C producers appeared to take cues from their shattered competitors. Critics say the Chinese companies practiced predatory pricing, undercutting the remaining producers, with an eye to cornering the world market and making an eventual killing.

"They formed the cartel in December 2001 when the prices were under $3 a kilogram," said William Isaacson, a Washington, D.C., attorney. Isaacson represents clients who are suing the Chinese companies in federal court in Brooklyn, N.Y., for damages from current high prices.

Today, only one Western company still makes vitamin C - Dutch-based DSM - and as China monopolizes vitamin C production, prices have hit $6 a kilogram (2.2 pounds).

Managers at Weisheng brush off the price-fixing charges, which may come to a head at a June 5 court hearing in Brooklyn, and say potential contamination of vitamin C couldn't occur under their strict quality control system.

"It's impossible," said Zhang Heming, vice director of the umbrella Shijiazhuang Pharmaceutical Co. Ltd. "I've done research on this pet food case."

"Our procedures, our facilities, even our air conditioners and water supply all comply with international standards," said Tian, the quality control department director.

An assistant brought in a pile of certificates showing the company had met stringent European and British quality standards, and said U.S. standards are similar.

Chinese food safety experts bristle at what they say is the West's exaggerated response to the pet food scare, in which melamine, a toxic chemical used in plastics, was added to wheat gluten, and the general "food fright" swirling around Chinese exports.

He Jiguo, a food safety expert at China Agriculture University, said it's difficult to deter companies with criminal or fraudulent intent before a mishap is reported.

"There are thousands of illegal things you can add to a product. The supervisory authorities can't literally test for each one of them," He said. "It is only after an accident happens that one finds out, just as a police officer can't arrest a thief before he commits a crime."

One Dutch expert said European and U.S. companies are reaping the benefits as Chinese companies reel from the fallout from food safety worries.

"There is an interest in the farm lobby in Europe and the United States to exaggerate. Everybody is always very happy when there's poor quality coming from the competition," said M.A. Keyzer, the director at the Centre for World Food Studies in Amsterdam.

Early reports indicate that Chinese food exporters already are experiencing a drop in sales.

Boor, the Cornell expert, said concerns about the safety of the global food trade are a useful wake-up call to U.S. consumers.

"I think we take an awful lot for granted here in the U.S. that people are doing their jobs all along the food chain," Boor said.


TOPICS: News/Current Events
KEYWORDS: china; foodsafety
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1 posted on 05/31/2007 5:20:51 PM PDT by JACKRUSSELL
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To: JACKRUSSELL

Americans have the most expensive urine in the world.
Lack of enough vitamin and minerals is not a problem here if you just eat right.


2 posted on 05/31/2007 5:28:55 PM PDT by Names Ash Housewares
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To: Arizona Carolyn; mom4kittys; blam; Salamander; Red Badger; WakeUpAndVote; dirtboy; Overtaxed; ...

3 posted on 05/31/2007 5:29:00 PM PDT by mom4kittys (If velvet could sing, it would sound like Josh Groban)
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To: JACKRUSSELL

I haven’t bought vitamins in a while, nor do I intend to. Do these vitamins say “Made in China”?


4 posted on 05/31/2007 5:38:53 PM PDT by RushingWater (Pres. Bush honors Mexican sovereignty over our own - Pardon Ramos/Campeon/Hernandez)
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To: RushingWater
Do these vitamins say “Made in China”?

None of the ones I take say that. They say things like "Manufactured for", "Manufactured by", and "Distributed by".

I'm going to have to look into this further, if this is true. The Chicoms can't be trusted any more than our Beltway "leaders".

5 posted on 05/31/2007 5:47:21 PM PDT by FlyVet
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To: mom4kittys; LucyT

I called Costco on my fish oil and they said they are not from China.

Thanks for the ping.


6 posted on 05/31/2007 5:50:09 PM PDT by sweetiepiezer (Pray for W.)
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To: JACKRUSSELL
I quit taking my vitamins about 6 months ago. I'm sure 99% are just fine, but who knows? Seriously, who really knows what's inside those pills?

And, with the Chinese making so many antibiotics, how long before they are no longer effective? Overuse just makes stronger more resistant germs. The next serious Asian flu should be a killer. The story of that guy who possibly infected all those fellow airline passengers with a resistant form of TB should make us all be very afraid...especially with our open borders.

If I were an overly dramatic person, I might say, "so this is what nation wide suicide feels like." The trouble with just giving people knowledge? They don't have the wisdom that came with earning it.

7 posted on 05/31/2007 5:52:08 PM PDT by GBA (God Bless America!)
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To: JACKRUSSELL

How many people on the road to poisoning?
Are they bulking their vitamins with the same plastic material as in their pet food?


8 posted on 05/31/2007 5:56:46 PM PDT by pennboricua
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To: mom4kittys

I’m taking an enzyme supplement that has been very effective against symptoms of arthritis...this article confirms what I suspected. Made in China.

As you often write - ‘it never ends’ !

thanks for the pings.


9 posted on 05/31/2007 6:11:19 PM PDT by Fred Nerks (Fair Dinkum!)
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To: Fred Nerks
I’m taking an enzyme supplement that has been very effective against symptoms of arthritis...this article confirms what I suspected. Made in China.

How dare the dastardly Chinese manufacture low-cost stiff that Americans want! Nuke 'em!

10 posted on 05/31/2007 6:23:00 PM PDT by BlazingArizona
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To: JACKRUSSELL
Since U.S. laws don't require food and drug sellers to label products with the country of origin of ingredients

Yikes. I'm still trying out what to feed my dog.
11 posted on 05/31/2007 6:38:47 PM PDT by caveat emptor
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To: BlazingArizona

Your flippant comment is totally unhelpful and out of line.

http://www.washingtonpost.com/wp-dyn/content/article/2007/05/19/AR2007051901273_pf.html

Tainted Chinese Imports Common
In Four Months, FDA Refused 298 Shipments

By Rick Weiss
Washington Post Staff Writer
Sunday, May 20, 2007; A01

Dried apples preserved with a cancer-causing chemical.

Frozen catfish laden with banned antibiotics.

Scallops and sardines coated with putrefying bacteria.

Mushrooms laced with illegal pesticides.

These were among the 107 food imports from China that the Food and Drug Administration detained at U.S. ports just last month, agency documents reveal, along with more than 1,000 shipments of tainted Chinese dietary supplements, toxic Chinese cosmetics and counterfeit Chinese medicines.

For years, U.S. inspection records show, China has flooded the United States with foods unfit for human consumption. And for years, FDA inspectors have simply returned to Chinese importers the small portion of those products they caught — many of which turned up at U.S. borders again, making a second or third attempt at entry.

Now the confluence of two events — the highly publicized contamination of U.S. chicken, pork and fish with tainted Chinese pet food ingredients and this week’s resumption of high-level economic and trade talks with China — has activists and members of Congress demanding that the United States tell China it is fed up...


12 posted on 05/31/2007 6:41:22 PM PDT by Fred Nerks (Fair Dinkum!)
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To: Fred Nerks

he must be a shareholder


13 posted on 05/31/2007 8:08:57 PM PDT by Flavius ("Qui desiderat pacem, praeparet bellum")
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To: JACKRUSSELL; All

Poison pills, anyone?


14 posted on 06/01/2007 2:26:48 AM PDT by backhoe (Fred Thompson- because No Other will Do...)
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To: JACKRUSSELL

I have heard this a couple months ago and promptly stopped taking Vit C.

I have been wondering what would happen if we contacted Vit makers and asked them if any of their ingredients come from China.

Might be if enough did and then stopped buying the ones that do not answer or say yes if the interest would be a red flag for them


15 posted on 06/01/2007 8:05:13 AM PDT by ears_to_hear
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To: Fred Nerks
Your flippant comment is totally unhelpful and out of line. http://www.washingtonpost.com/wp-dyn/content/article/2007/05/19/AR2007051901273_pf.html Tainted Chinese Imports Common In Four Months, FDA Refused 298 Shipments By Rick Weiss Washington Post Staff Writer Sunday, May 20, 2007; A01 Dried apples preserved with a cancer-causing chemical. Frozen catfish laden with banned antibiotics. Scallops and sardines coated with putrefying bacteria. Mushrooms laced with illegal pesticides. These were among the 107 food imports from China that the Food and Drug Administration detained at U.S. ports just last month, agency documents reveal, along with more than 1,000 shipments of tainted Chinese dietary supplements, toxic Chinese cosmetics and counterfeit Chinese medicines. For years, U.S. inspection records show, China has flooded the United States with foods unfit for human consumption. And for years, FDA inspectors have simply returned to Chinese importers the small portion of those products they caught — many of which turned up at U.S. borders again, making a second or third attempt at entry. Now the confluence of two events — the highly publicized contamination of U.S. chicken, pork and fish with tainted Chinese pet food ingredients and this week’s resumption of high-level economic and trade talks with China — has activists and members of Congress demanding that the United States tell China it is fed up...

In Europe if one of the inspected items has a problem the check THE ENTIRE SHIPMENT . We do not do that here.
It is a well known practice that when the offending shipment is put back on a ship it is simply taken to another port were it will probably not be inspected.

We need to check entire loads like Europe and clearly mark every refused shipment and notify other posts .

16 posted on 06/01/2007 8:11:35 AM PDT by ears_to_hear
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To: BlazingArizona
How dare the dastardly Chinese manufacture low-cost stiff that Americans want! Nuke 'em!

Sounds of a FRee (to be) Traitor. Blackbird.

17 posted on 06/01/2007 9:11:00 AM PDT by BlackbirdSST (Just when you think it can't possibly get any worse, another day dawns!)
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To: Fred Nerks

I’ve given up fish altogether, as so many are parasite-ridden. Hopefully my expensive cod liver oil with omega 3s from the arctic didn’t come from the Chinese arctic.

I’m suspicious of any and all prepackaged meat too.

My kitties now turn their backs on canned cat food they loved just a few months ago. Finicky cats? Or smart cats who recognize changed and cheapened formulas? I’m betting on the latter, though the brand I’ve used for years was not on the poisoned food list.


18 posted on 06/01/2007 11:53:57 AM PDT by Veto! (Opinions freely dispensed as advice)
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To: JACKRUSSELL

“Food and drug safety inspectors drop in at the plant from time to time. “

Chinese ones. So big deal.

If I took vitamins, I’d stop right now. But as mentioned up the thread, if you eat “real” food, you don’t need vitamins. Another interesting facet is that most (not sure, I rarely eat any) pre-prepared foods have added vitamins - most likely from China.

Yum!


19 posted on 06/01/2007 10:09:07 PM PDT by little jeremiah (Only those who thirst for the truth will know the truth.)
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To: Fred Nerks

Anti-Arthritis supplements have kept me from having knee replacements. I need to check into them a little more to make sure I’m not working up to a kidney replacement.


20 posted on 06/01/2007 10:34:38 PM PDT by Cold Heart
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