Saturday, August 18, 2007

Supplier Ca-noodling

Couldn't resist the headline when I saw this AP story on purported price-fixing in the Chinese instant noodle (Ramen) industry.

The report came amid a nationwide probe into whether price-fixing or hoarding by producers is to blame for a 15.4 percent jump in food prices in July over the year-earlier period. The government accused violators of damaging social stability. [emphasis mine - Al]
and finally buried at the end of the article on Page 2, a better discussion of the real issue: collusion of the producers:

"Some industry groups have organized coordinated price rises," the agency said in an Aug. 3 statement. It said the collusion "influences social stability." [emphasis mine - Al]

There's that delicate social stability again.

Cheers China! Where everybody knows your name...

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