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#34886 - 09/24/07 12:28 PM Re: FOREIGN INVESTMENTS. [Re: Zwangendaba]
Zwangendaba Offline

Registered: 04/27/03
Posts: 1399
Loc: New York, New York, USA

Cleaning Up China

Published: September 24, 2007 ? New York Times

In 1991, Lawrence Summers ? then the World Bank?s chief economist and later Bill Clinton?s Treasury secretary ? wrote a memo suggesting that the bank should encourage the world?s dirty industries to move to developing countries. The forgone earnings of workers sickened or killed by pollution would be lower in low-wage countries, he noted, while people in poor countries also cared less about a clean environment. ?The economic logic of dumping a load of toxic waste in the lowest-wage country is impeccable,? he wrote.

Mr. Summers later apologized, saying his words were ?sardonic counterpoint,? meant to spur new thinking about the environment and development. In any case, the World Bank?s encouragement wasn?t needed. In the 16 years since, a large share of the world?s polluting industries have migrated to the largest low-wage country of all, China, helping to turn big swaths of its landscape into an environmental disaster zone.

China makes more than a third of the world?s steel, half of its cement, about a third of its aluminum. It also consumes more coal than the United States, Europe and Japan combined. Its environmental degradation is a match for Dickens at his bleakest: airborne pollution causes more than 650,000 premature deaths a year. The problem doesn?t stay there. China is about to surpass, or has already surpassed, the United States as the world?s biggest emitter of greenhouse gases. China?s government bears primary responsibility for failing to address the devastating environmental consequences of its breakneck growth.

Industrialized countries, whose companies and consumers have benefited from China?s cheap labor and polluting industries, also bear responsibility and must work to fix this mess.
Beijing has begun to realize that its current path is not cost-free. A study commissioned by the government conservatively estimated that costs imposed by environmental degradation added up to 3 percent of G.D.P. in 2004. The government has since set targets to reduce energy use and cut emissions. China?s authoritarian leaders, however, are fearful of anything that might require slower growth and have strangled most domestic debate about the environmental disaster. After the first report they dropped the effort to measure pollution?s economic impact, and the targets are unlikely to be met.

Beijing could start investing some of the hundreds of billions of dollars China earns on exports in social and environmental programs at home. Foreign companies could help by requiring their suppliers in China to adopt best environmental practices. Western governments can also help by explaining how pollution could threaten both China?s growth and social stability ? the two things its authoritarian leaders worry about most. Perhaps the most important thing the United States could do is to set a strong international example, by dealing with its own environmental deficit. Instead, the Bush administration has been hiding behind China?s recalcitrance ? allowing China to do the same.


Li Zwangendaba.

#34897 - 09/25/07 01:20 PM Re: FOREIGN INVESTMENTS. [Re: Zwangendaba]
kanti9Kunjalo Offline

Registered: 08/08/07
Posts: 53
Loc: Empangeni, Ningizimu Afrika
Lake lananzelela ukuthi egodini sekugcwele impuphu zama chemicals oku cleaner ama toilet, ama pesticide, etc. Kwangidanisa ngize ngifike ekhaya lokhu. Most of these vendors babutha wonala ama left over ama CHINEESE.

Yingcekeza kuphela esiyibonayo.

Yimi okaMblazi.

Edited by kanti9Kunjalo (09/25/07 01:25 PM)

#34911 - 09/26/07 01:17 AM Re: FOREIGN INVESTMENTS. [Re: kanti9Kunjalo]
Zwangendaba Offline

Registered: 04/27/03
Posts: 1399
Loc: New York, New York, USA

How about this strategy by INDIA.


Outsourcing Works So Well,

India Is Exporting Jobs

Published: September 25, 2007

MYSORE, India ? Thousands of Indians report to Infosys Technologies? campus here to learn the finer points of programming. Lately, though, packs of foreigners have been roaming the manicured lawns, too.

Infosys employs workers in Brno, Czech Republic.
Many of them are recent American college graduates, and some have even turned down job offers from coveted employers like Google. Instead, they accepted a novel assignment from Infosys, the Indian technology giant: fly here for six months of training, then return home to work in the company?s American back offices.

India is outsourcing outsourcing. One of the constants of the global economy has been companies moving their tasks ? and jobs ? to India. But rising wages and a stronger currency here, demands for workers who speak languages other than English, and competition from countries looking to emulate India?s success as a back office ? including China, Morocco and Mexico ? are challenging that model. Many executives here acknowledge that outsourcing, having rained most heavily on India, will increasingly sprinkle tasks around the globe. Or, as Ashok Vemuri, an Infosys senior vice president, put it, the future of outsourcing is ?to take the work from any part of the world and do it in any part of the world.?

To fight on the shifting terrain, and to beat back emerging rivals, Indian companies are hiring workers and opening offices in developing countries themselves, before their clients do. In May, Tata Consultancy Service, Infosys?s Indian rival, announced a new back office in Guadalajara, Mexico; Tata already has 5,000 workers in Brazil, Chile and Uruguay. Cognizant Technology Solutions, with most of its operations in India, has now opened back offices in Phoenix and Shanghai. Wipro, another Indian technology services company, has outsourcing offices in Canada, China, Portugal, Romania and Saudi Arabia, among other locations. And last month, Wipro said it was opening a software development center in Atlanta that would hire 500 programmers in three years.

In a poetic reflection of outsourcing?s new face, Wipro?s chairman, Azim Premji, told Wall Street analysts this year that he was considering hubs in Idaho and Virginia, in addition to Georgia, to take advantage of American ?states which are less developed.? (India?s per capita income is less than $1,000 a year.) For its part, Infosys is building a whole archipelago of back offices ? in Mexico, the Czech Republic, Thailand and China, as well as low-cost regions of the United States. The company seeks to become a global matchmaker for outsourcing: any time a company wants work done somewhere else, even just down the street, Infosys wants to get the call. It is a peculiar ambition for a company that symbolizes the flow of tasks from the West to India. Most of Infosys?s 75,000 employees are Indians, in India. They account for most of the company?s $3.1 billion in sales in the year that ended March 31, from work for clients like Bank of America and Goldman Sachs. ?India continues to be the No. 1 location for outsourcing,? S. Gopalakrishnan, the company?s chief executive, said in a telephone interview. And yet the company opened a Philippines office in August and, a month earlier, bought back offices in Thailand and Poland from Royal Philips Electronics, the Dutch company. In each outsourcing hub, local employees work with little help from Indian managers. Infosys says its outsourcing experience in India has taught it to carve up a project, apportion each slice to suitable workers, double-check quality and then export a final, reassembled product to clients. The company argues it can clone its Indian back offices in other nations and groom Chinese, Mexican or Czech employees to be more productive than local outsourcing companies could make them.

?We have pioneered this movement of work,? Mr. Gopalakrishnan said. ?These new countries don?t have experience and maturity in doing that, and that?s what we?re taking to these countries.?
Some analysts compare the strategy to Japanese penetration of auto manufacturing in the United States in the 1970s. Just as the Japanese learned to make cars in America without Japanese workers, Indian vendors are learning to outsource without Indians, said Dennis McGuire, chairman of TPI, a Texas-based outsourcing consultancy. Though work that bypasses India remains a small part of the Infosys business, it is growing. The company can be highly secretive, but executives agreed to describe some of the new projects on the condition that clients not be identified. In one project, an American bank wanted a computer system to handle a loan program for Hispanic customers. The system had to work in Spanish. It also had to take into account variables particular to Hispanic clients: many, for instance, remit money to families abroad, which can affect their bank balances. The bank thought a Mexican team would have the right language skills and grasp of cultural nuances. But instead of going to a Mexican vendor, or to an American vendor with Mexican operations, the bank retained three dozen engineers at Infosys, which had recently opened shop in Monterrey, Mexico. Such is the new outsourcing: A company in the United States pays an Indian vendor 7,000 miles away to supply it with Mexican engineers working 150 miles south of the United States border.

In Europe, too, companies now hire Infosys to manage back offices in their own backyards. When an American manufacturer, for instance, needed a system to handle bills from multiple vendors supplying its factories in different European countries, it turned to the Indian company. The manufacturer?s different locations scan the invoices and send them to an office of Infosys, where each bill is passed to the right language team. The teams verify the orders and send the payment to the suppliers while logged in to the client?s computer system. More than a dozen languages are spoken at the Infosys office, which is in Brno, Czech Republic. The American program here in Mysore is meant to keep open that pipeline of diversity. Most trainees here have no software knowledge. By teaching novices, Infosys saves money and hopes to attract workers who will turn down better-known companies for the chance to learn a new skill. ?It?s the equivalent of a bachelor?s in computer science in six months,? said Melissa Adams, a 22-year-old trainee. Ms. Adams graduated last spring from the University of Washington with a business degree, and rejected Google for Infosys. And yet, even as outsourcing takes on new directions, old perceptions linger. For instance, when Jeff Rand, a 23-year-old American trainee, told his grandmother he was moving to India to work as a software engineer for six months, ?she said, ?Maybe I?ll get to talk to you when I have a problem with my credit card.? ? Said Mr. Rand with a rueful chuckle, ?It took me about two or three weeks to explain to my grandma that I was not going to be working in a call center.?

Li Zwangendaba

#35216 - 10/31/07 11:28 PM Re: FOREIGN INVESTMENTS. [Re: Zwangendaba]
Zwangendaba Offline

Registered: 04/27/03
Posts: 1399
Loc: New York, New York, USA

Singatshayi indiva ngendaba ezinje ngoba laba abantu besi TSHAYINA bagcwele yonke indawo. Njalo abalananzelelo lama health concerns.

This article was reported by Walt Bogdanich, Jake Hooker and Andrew W. Lehren and written by Mr. Bogdanich.

The Changzhou Kangrui Chemical Company in Changzhou, China, is one of a number of concerns selling uncertified drug ingredients. It sent representatives to a trade show in Milan this month.

MILAN ? In January, Honor International Pharmtech was accused of shipping counterfeit drugs into the United States. Even so, the Chinese chemical company ? whose motto is ?Thinking Much of Honor? ? was openly marketing its products in October to thousands of buyers here at the world?s biggest trade show for pharmaceutical ingredients.

Other Chinese chemical companies made the journey to the annual show as well, including one manufacturer recently accused by American authorities of supplying steroids to illegal underground labs and another whose representative was arrested at the 2006 trade show for patent violations. Also attending were two exporters owned by China?s government that had sold poison mislabeled as a drug ingredient, which killed nearly 200 people and injured countless others in Haiti and in Panama. Yet another chemical company, Orient Pacific International, reserved an exhibition booth in Milan, but its owner, Kevin Xu, could not attend. He was in a Houston jail on charges of selling counterfeit medicine for schizophrenia, prostate cancer, blood clots and Alzheimer?s disease, among other maladies. While these companies hardly represent all of the nearly 500 Chinese exhibitors, more than from any other country, they do point to a deeper problem: Pharmaceutical ingredients exported from China are often made by chemical companies that are neither certified nor inspected by Chinese drug regulators, The New York Times has found. Because the chemical companies are not required to meet even minimal drug-manufacturing standards, there is little to stop them from exporting unapproved, adulterated or counterfeit ingredients. The substandard formulations made from those ingredients often end up in pharmacies in developing countries and for sale on the Internet, where more Americans are turning for cheap medicine.

In Milan, The Times identified at least 82 Chinese chemical companies that said they made and exported pharmaceutical ingredients ? yet not one was certified by the State Food and Drug Administration in China, records show. Nonetheless, the companies were negotiating deals at the pharmaceutical show, where suppliers wooed customers with live music, wine and vibrating chairs. One of them was the Wuxi Hexia Chemical Company. When The Times showed Yan Jiangying, a top Chinese drug regulator, a list of 186 products being advertised by the company, including active pharmaceutical ingredients and finished drugs, Ms. Yan said, ?This is definitely against the law.? Yet in China, chemical manufacturers that sell drug ingredients fall into a regulatory hole. Pharmaceutical companies are regulated by the food and drug agency. Chemical companies that make products as varied as fertilizer and industrial solvents are overseen by other agencies. The problem arises when chemical companies cross over into drug ingredients. ?We have never investigated a chemical company,? said Ms. Yan, deputy director of policy and regulation at the State Food and Drug Administration. ?We don?t have jurisdiction.?
China?s health officials have known of this regulatory gap since at least the mid-1990s, when a chemical company sold a tainted ingredient that killed nearly 100 children in Haiti. But Chinese regulatory agencies have failed to cooperate to stop chemical companies from exporting drug products.

In 2006, at least 138 Panamanians died or were disabled after another Chinese chemical company sold the same poisonous ingredient, diethylene glycol, which was mixed into cold medicine China has an estimated 80,000 chemical companies, and the United States Food and Drug Administration does not know how many sell ingredients used in drugs consumed by Americans. The Times examined thousands of companies selling products on major business-to-business Internet trading sites and found more than 1,300 chemical companies offering pharmaceutical ingredients. How many others sell drug ingredients but don?t advertise this way on the Web is not known. If the Milan show is any guide, most, if not all, are not certified by China?s drug authorities.
China exports drug ingredients to customers in 150 countries, said Sun Dongliang, a Chinese trade official who helped organize his country?s Milan exhibitors. Many suppliers have passed inspections by drug authorities and sell active pharmaceutical ingredients, or A.P.I.?s, of high quality, buyers say. ?Sometimes you can just have your lunch on the floor of the factory because it?s so clean and so perfect, sometimes much better than in Europe,? said Jean-Fran?ois Quarre, a French drug company official who had a booth in Milan. But Mr. Quarre cautioned that he has seen the other side as well. ?It?s frightening.? At their worst, uncertified chemical companies contribute to China?s notoriety as the world?s biggest supplier of counterfeit drugs, which include unauthorized copies as well as substandard, even harmful, formulations. ?Underregulated manufacturers are increasingly becoming the source of A.P.I.?s used in the production of counterfeit medicine,? R. John Theriault, until recently Pfizer?s head of global security, said in a statement to Congress. Because United States drug regulators require pharmaceutical suppliers to meet high standards, the American supply chain is among the world?s safest. But as China?s chemical suppliers multiply, Congressional investigators are questioning the F.D.A.?s ability to protect consumers.

Even some Chinese chemical companies recognize their limitations in making pharmaceuticals. ?We don?t have the resources and means to produce medicine,? said Gu Jinfeng, a salesman for Changzhou Watson Fine Chemical. ?The bar for producing chemicals is pretty low.? Even so, Watson Chemical advertises that it makes active pharmaceutical ingredients. But Mr. Gu said he would export them only to countries with lower standards than China, or if ?we can earn really good profits.?

A Trail of Steroids. Just days before the Milan trade show, United States officials made an announcement that brought home the global reach and attendant dangers of China?s expanding chemical industry. The officials disclosed that they had dismantled a 27-state underground network for steroids and human growth hormone, arresting 124 people in ?Operation Raw Deal.? The supply trail almost always led to China. Thirty-seven companies there supplied virtually all of the bulk chemicals, federal officials said. Of the 37 suspect companies, all but one unnamed by the American authorities, The Times identified eight. Records show that six are uncertified chemical companies, including Hunan Steroid, which marketed its products at the Milan convention. ?Just want to see the old customers and develop the new market,? said Sun Xueqin, a deputy export manager for Hunan Steroid. Ms. Sun said the company sold raw pharmaceutical ingredients in Europe and America and more advanced pharmaceutical ingredients in India, among other places. Later, another Hunan official, Huang Zili, said the company did not sell to the United States, and declined to comment on the government?s contention that Hunan was a supplier of bodybuilding drugs. Hunan has not been charged with any crime. As serious as the accusations are in Operation Raw Deal, health experts say they believe that counterfeit drugs, particularly those sold on the Internet, pose a greater threat to a broader segment of the American public.
?The facts are irrefutable,? Mr. Theriault, the former Pfizer official, told Congress. ?The importation of counterfeit, infringing, misbranded and unapproved pharmaceutical products in the United States is increasing exponentially.? Pfizer makes Viagra, one of the drugs most often counterfeited.

Finding uncertified companies feeding the market is not difficult. Orient Pacific International, the Milan registrant whose owner did not show up, advertised that it makes and exports pharmaceutical ingredients to ?worldwide famous medical companies.? The owner, Mr. Xu, is accused of selling counterfeit medicine to treat ailments like cancer, mental illness and heart disease, according to United States Immigration and Customs Enforcement, or I.C.E. Mr. Xu shipped drugs to an Internet pharmacy, investigators say. But he also penetrated the highly regulated supply chain of legitimate distributors in Europe, said David A. Faulconer, a customs official. Acting on tips from large drug companies, federal officials devised a plan to stop him from doing the same in the United States.

Posing as a buyer, an investigator for the immigration and customs agency met Mr. Xu in Bangkok on March 6. Mr. Xu gave him ?detailed suggestions for transshipment and smuggling techniques to evade United States Customs detection,? federal records show. After investigators bought multiple shipments of counterfeit drugs, Mr. Xu traveled to Houston ?to consummate an agreement for widespread distribution of his counterfeit products in the United States,? according to an affidavit filed in federal court. Federal agents arrested Mr. Xu, who has pleaded not guilty. Another company exhibiting in Milan, Honor International Pharmtech, was also the subject of a customs investigation. In January, agents seized 3,041 fake Viagra pills sent by the company to a DHL shipping hub in Wilmington, Ohio, according to customs. The shipment, disguised as grape seed extract, was destined for an Internet pharmacy in Central America, said agents who requested anonymity because the investigation continues. ?We do make grape seed extract,? the company?s managing director, Nie An, said in a telephone interview. He denied shipping counterfeit Viagra, but he acknowledged other indiscretions: making false advertising claims, using another company?s import-export license and creating a fake corporate name. ?We don?t really have a factory,? Mr. Nie said, even though he advertised that he did. Honor International is just a trading company, he said, adding, ?As a trading company, saying you can manufacture attracts business. It was fake advertising.?

The Times found several other companies posing as manufacturers, thereby obscuring a drug?s provenance. In a recent joint statement, chemical associations in the United States and Europe cautioned that globalization has led to a rise in complexity in supply chains, ?increasing the potential for contamination, mislabeling or substitution.? Pharmaceutical ingredients can pass through three or four trading companies, none of which check their quality. The ultimate manufacturer may not realize the ingredients came from an uncertified chemical company.
Mr. Nie, for example, said he markets Viagra?s main ingredient, sildenafil, through a partnership with a chemical company in a distant region that he has never visited. ?We met them at a trade fair,? he said. ?This company didn?t even have a booth at the fair. They were standing outside the entrance to the exhibition center, and they handed us a flier with a menu of their products.? He said he was trying to the reach the factory, which has no Web site, to fill a Croatian company?s order. ?Our main markets are in Latin America ? Brazil, Argentina, Uruguay,? he said. ?A little in Canada, a little in the United States. In Europe, we export to Germany, Russia, Italy.? But Mr. Nie faces an uncertain future. He said that Chinese investigators had recently visited his office, and that they knew about the seizure in Ohio.

Viagra is hardly the only drug that companies try to copy. The French drug maker Sanofi-Aventis grew weary of watching other companies sell knockoffs of its new diet drug, Acomplia, and alerted French authorities that three Chinese companies were marketing their own version of the product at the 2006 pharmaceutical ingredient trade show, held in Paris. Six Chinese company officials were arrested. One of those arrested in Paris was Jin Lijie, managing director of the Wuxi Hexia Chemical Company. Still, Wuxi Hexia showed up in Milan in 2007 selling a line of pharmaceutical ingredients. Its representatives declined to be interviewed in Milan, or at its offices in the boomtown of Wuxi. ?We are all young college graduates and we are still learning about the market,? said an employee named Du Yanqun.

Factories on the Yangtze. A good place to find companies selling uncertified drug ingredients is Changzhou in the Yangtze delta, where the raw materials for chemical production are readily available and easily transported by canals and roads. Several factories there sent representatives to Milan, including the Changzhou Kangrui Chemical Company. It makes pharmaceutical ingredients in an old converted steel plant. ?I?m afraid it will leave you with a bad impression,? said Zhou Ladi, a sales representative, as she gave a tour. She said Kangrui Chemical hopes to move into a new plant by early 2009. ?As long as we don?t export products that are under patent in other countries, the government encourages us to export,? she said. To help find customers overseas, smaller factories enlist the services of people like Bian Jingya, export manager for a trading company called the Changzhou Wejia Chemical Company. Ms. Bian said chemical companies are involved in all phases of drug manufacturing, including making finished products. Some, she said, ?are under patent in other countries.? Ms. Bian, who was also in Milan, said the government should spell out more clearly what companies may and may not do. ?If you want to be regulated, they will regulate you,? she said. ?If you don?t want to be regulated, they don?t.?

The Chinese drug agency does not oversee the making of pharmaceutical raw materials, called intermediates, which are the building blocks for active pharmaceutical ingredients. ?It is unrealistic for us to certify all factories that make intermediates and regulate them like medicine products,? said Ms. Yan, the agency official. But if companies make active ingredients, a more refined product, then they must be regulated by drug authorities, she said. When The Times pointed out that many uncertified chemical companies openly advertise active ingredients, Ms. Yan said that was illegal. ?If there are in fact chemical companies that are making drugs without certification then this is very serious,? she said. ?These companies are not qualified to make medicine. They make chemicals.? Wang Siqing, managing director of the Changzhou Yabang Pharmaceutical Company, estimated that uncertified chemical companies make half the active pharmaceutical ingredients sold in China. ?The stuff produced by chemical plants is clearly counterfeit medicine, but they aren?t investigating,? Mr. Wang said in an interview at his office. ?This has been happening in a regulatory void.? He added that most chemical company exports go to unregulated markets in Africa or South America. ?That?s not to say these products don?t enter the United States through these other countries,? he said.

To find out how well American consumers are being protected from unsafe imported drugs, investigators from the House Energy and Commerce Committee recently accompanied F.D.A. officials on inspections of drug plants in China and India. In a letter to the F.D.A. commissioner, the committee said that the agency was unable to provide such basic information as the number of firms exporting to the United States, and that overseas F.D.A. inspectors lacked necessary logistical support. A House hearing on F.D.A. oversight of foreign drug manufacturers is scheduled for Thursday. ?China alone has more than 700 firms making drug products for the U.S., yet the F.D.A. has resources to conduct only about 20 inspections a year in China,? said Representative John D. Dingell, the Michigan Democrat who is the chairman of the House Energy and Commerce Committee. The F.D.A. said it would answer the committee?s questions at the hearing.

Poisonings in Haiti. United States officials learned of problems with China?s chemical companies in the mid-1990s while investigating the fatal poisonings in Haiti. Chinese authorities took no action against the uncertified chemical company that made the poison, diethylene glycol, or the giant state-owned trader, Sinochem International Chemicals, that exported it. A decade later another state-owned trading company, CNSC Fortune Way, exported the diethylene glycol ? also from an uncertified chemical company ? that ended up in the deadly Panamanian cold medicine in 2006. Chinese officials have known for years that uncertified chemical companies are producing active pharmaceutical ingredients. In 2004 the Chinese drug authority?s newspaper cited complaints that some licensed companies ?affiliate? with unlicensed ones to hide their illegal purchases, while others buy only a token amount from certified suppliers to pass inspection. ?The impact of chemical products on the bulk pharmaceutical market hints at a much larger problem: a huge hole in drug safety,? the drug agency publication stated.

Since the Panama poisonings, China is considering ways to corral the chemical industry. At Panama?s request, Michael O. Leavitt, the secretary of health and human services, has pressed the Chinese government to step up regulation of chemical companies selling pharmaceutical ingredients. American and Chinese health officials held their first high-level meeting in May, and hope to sign a memorandum of agreement in December. ?The Chinese have finally come to the realization that their regulatory system needs repair,? said William Steiger, director of international affairs for Mr. Leavitt?s agency. But meaningful change will be difficult. Chinese authorities may not have enough investigators to weed out the many small chemical companies that are making drug ingredients. And efforts to close the regulatory gap must overcome one particularly thorny issue: some uncertified companies accused of selling counterfeit drugs are owned by the government itself.


Li Zwangendaba.

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