China's food fight
United States President George W Bush this week issued an executive order that impacts on one of the most important trading relationships for the US - China. Radio Australia's finance and business reporter Karon Snowdon reports.

President Bush has established a high-level government panel to help guarantee the safety of food and pharmaceutical products coming into the country.

The Import Safety Working Group is being seen as a response to serious contamination of some products from China, although a White House spokesman denied China was a particular target.

But it didn't go unnoticed in Beijing. Authorities there banned meat products from seven US companies.

This is no ordinary food fight.

In some media and political quarters in the US sentiment has been turning decidedly anti-Chinese for some time - human rights, the US trade deficit, and the weak Chinese currency have all grabbed headlines and attention of Congress.

Now China's consumer products are posing a threat to consumers and the bilateral relationship.

In Panama, mislabelled drug products killed at least 120 people last year, more recently pets died from poisonous pet food in the US where some imported food has been found to contain hazardous chemicals.

Myron Brilliant is the vice president of the powerful US Chamber of Commerce. His main focus is the China-US relationship. And he's on his way to China now.

"Its definitely an issue in the US-China relationship, its one that's caught the attention of the Congress and the general public. I don't think its had long term ramifications - yet, but if this issue is not addressed it could have implications."

China is taking the issue seriously, even as it blames the Western media for blowing the issue out of proportion. Premier Wen Jiabao says the government will clean up China's industries.

But he faces a major problem. China's system of regulation just hasn't kept pace with the extraordinary growth of its industries and exports and shortcuts, corruption and unregulated producers are major problems .

Authorities know this but they also know they are largely helpless to change things quickly.

A high profile execution just over a week ago was meant to send a strong message.

The former head of the State Food and Drug administration was one of the highest ranking officials to be executed in recent years. He was tried and sentenced with some haste for taking hundreds of thousands of dollars in bribes to illegally approve drugs.

It shows China's concern about the impact of the scandals on its reputation and the potential to affect its export trade.

So much so that in response to damning media reports in the US, China's embassy in Washington issued a rare public statement - one with the tone of a warning, against what it called "groundless smear attacks" against Chinese products and said it was working quickly and responsibly to address concerns over the recent food safety scares.

It added "Blowing up, complicating or politicising a problem are irresponsible actions" and called for more co-operation.

Moves are underway to make that happen - the two countries are expected to sign a memorandum of understanding by the end of the year on food safety standards.

As well its clear Beijing must impose modern standards of regulation for the sake of its own consumers and if the world isn't to avoid the Made in China label.

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