Mr. Li the Dumpling King
The hoarding was rather ambitious given the simplicity of the circumstances. The hole in the wall below the sign did not match its extravagant claim. In fact the frontage of the restaurant was the back wall of an older, now demolished, building. Mr. Li has simply broken a door through to a covered yard, set up tables and continued his dumpling business. Ingenious perhaps but hardly suggesting blue blood. I did not see a health and safety certification but I am confident that if one had been refused, a small gift would have smoothed the path to certification. Judging from appearances I very much doubt that Mr. Li is really the dumpling King.
Mr. Li’s rather artless claim could not be considered as false advertising even in the most rigorous of regulatory environments. Unfortunately in China, the kind of confidence one has in advertising claims even by established brands is often misplaced and the supervision lax in the extreme. Until recently, I had taken a rather indulgent view of fake brands, since in the markets famous for such items, one gets no less than what you pay for. Government campaigns against the practice seemed more token than real, judging by the speed with which things returned to “normal” after the campaigns were over. For years people have been talking about the problem I did not appreciate the complexity of the issue.
A recent scandal has put the issue into a different perspective. A mysterious illness that has so far killed 4 babies resulted from wholesale contamination of the food chain. Reputable companies have been found to have sold milk powder which had been contaminated by fraudulent whole-milk suppliers. Local officials were prepared to bury the issue, and a New Zealand business partner had to go through convoluted diplomatic channels to inform the Chinese Central Government of the problem. Now a very thorough and transparent cleanup process is in play, but not before credibility in the milk supply has completely disappeared. The latest addition to those affected is Starbucks China who has very publicly announced a shift to new source for its milk products. It seems brand reputation and good enforcement of regulation are no laughing matter.
Government health standards are set centrally and are often in line with international best practice. They are rendered toothless however by endemic cronyism at the local level. In the case of the Milk Scandal, there are standards, but the petty criminality of two brothers in Hebei have undermined confidence in the national milk supply system and taken the edge of the feel-good factor engendered by Olympic successes. When the economy was less integrated, the impact of such fraud was minimal, but in a rapidly expanding and globalizing economy, small-scale corruption in the provinces can have national impact. The willingness to ignore the poor compliance record at a local level, is no longer sustainable when the consequences are so devastating.
I would bet that Mr. Li dumplings despite his claims, are not that good, but China is not going stay awake nights worrying about it. Nationally branded companies who proclaim their quality on hoardings across the country while delivering tainted product into the market place are a different matter. Of equal concern is the failure of government agencies to address the problem until pressure to do so came from the highest level. Pulling off a brilliant Olympics is not the only mark of a developed country. Brand confidence and a good regulatory framework are important also. I think I will be drinking my Starbuck’s Latte black until both of those are firmly in place.