VZCZCXRO6609
PP RUEHCN RUEHGH RUEHVC
DE RUEHBJ #0360/01 0320011
ZNR UUUUU ZZH
P 010011Z FEB 08
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC PRIORITY 4749
INFO RUCPDOC/USDOC WASHDC
RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHMFIUU/DEPT OF HOMELAND SECURITY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RULSDMK/DEPT OF TRANSPORTATION WASHDC
RUEAWJA/DEPT OF JUSTICE WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE WASHDC
RHEHNSC/NSC WASHDC
RUEAEPA/HQ EPA WASHDC
RUEHOO/CHINA POSTS COLLECTIVE

UNCLAS SECTION 01 OF 03 BEIJING 000360 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
EAP/PD FOR NIDA EMMONS 
HHS FOR OGHA/STEIGER AND PASS TO FDA/LUMPKIN 
USDA FOR FSIS/RAYMOND 
USDA FOR FAS OA/YOST, OCRA/ALEXANDER, OSTA/BRANT AND SHNITZLER 
COMMERCE FOR ITA/HIJIKATA AND CINO 
STATE PASS TRANSPORTATION FOR NHTSA ABRAHAM/KRATZKE 
STATE PASS CONSUMER PRODUCTS SAFETY COMMISSION RICH O'BRIEN/INTL 
PROGRAMS 
STATE PASS USTR CHINA OFFICE/TIM WINELAND 
STATE PASS OMB/INT'L AFFAIRS 
STATE PASS HOMELAND SECURITY COUNCIL 
STATE PASS IMPORT SAFETY WORKING GROUP 
 
E.O. 12958: N/A 
TAGS: TBIO EAGR ECON HHS ETRD BEXP CH
SUBJECT: 2008 FOOD AND PRODUCT SAFETY LEGISLATIVE AGENDA 
 
Ref: A. 07 Beijing 5271 
 
¶B. 07 Beijing 4561 
¶C. 07 Beijing 4808 
¶D. 07 Beijing 5255 
¶E. 07 Beijing 5899 
¶F. 07 Guangzhou 1270 
 
¶1. (SBU) Summary: China is preparing for a banner year in 2008 in 
food and product safety as authorities draft and review seven 
separate pieces of legislation or regulations.  The most important 
piece of legislation, the Food Safety Law, is a comprehensive law 
encompassing all facets of the food production supply chain that 
will unify national, local, and industry standards.  AQSIQ Policy 
and Legislation Director General Liu Zhaobin told Econ Mincouns 
January 18 that the law will go through two more readings 
(revisions) by the National People's Congress (NPC) Standing 
Committee and would not be finished in 2008.  AQSIQ will also focus 
on six new items: the Entry/Exit Health and Inspection Law, the 
Measurement Law, the Standardization Law, the Product Recall 
regulation, the Quality Award regulation, and the Special Equipment 
regulation, which has implications for energy conservation.  AQSIQ 
has notified the WTO about a draft food safety measure that will 
affect imports and exports and is engaged in risk assessment of 
cloning.  Shedding light on the leading group decision process, Liu 
said that the Food Safety and Product Quality Leading Group chaired 
by Vice Premier Wu Yi discussed the Food Safety Law but did not have 
a role in approving it for passage to the NPC. Finally, Liu noted 
that he would like to visit the United States to conduct research on 
establishing a quality award for China based on U.S. and Japanese 
models. End Summary. 
 
Update on Food Safety Law 
------------------------- 
 
¶2. (SBU) AQSIQ Policy and Legislation Director General Liu Zhaobin 
told Econ Mincouns January 18 that the Food Safety Law would undergo 
three readings (or revisions) in total by the National People's 
Congress (NPC) Standing Committee, of which the first reading 
occurred in late December 2007. The law will require imported 
products to meet Chinese standards and exported products to meet 
importing country standards.   The draft law reinforces a State 
Council directive (Ref. A) of July 2007 that established clearer 
food safety guidelines and penalties.  Among other measures, the new 
law also requires public notification of major risks, requires 
publication of national standards for public viewing, establishes 
restrictions on sales of substandard food, prohibits commingled 
shipping of food items with contaminants, and calls for more food 
safety education in villages and schools.  The law will mandate 
inspection and testing at each step in the supply chain.  AQSIQ made 
a choice to leave the law's language broad, Liu noted. Details will 
be worked out later in the implementing regulations. 
 
Risk Assessment and Cloning 
--------------------------- 
 
¶3. (SBU) The development of standards requires an understanding of 
food dangers, Liu noted, and so the Food Safety Law establishes a 
mechanism for risk assessment.  The vehicle for risk assessments 
will be the "Risk Assessment Expert Committee" composed of experts 
from agencies, academia, and research institutions. The Committee 
will have the responsibility to report their findings to appropriate 
agencies, which will then be required to take immediate action in 
cases of large scale contamination or harm.  Two areas of focus now 
for standards development are allergies (such as peanut allergies) 
and the risks posed by food from cloned animals.  Whereas 
genetically modifying a gene requires manipulation, Liu said cloning 
was simply the copying of an existing gene. One report he had seen 
 
BEIJING 00000360  002 OF 003 
 
 
indicated cloning would be less risky than genetic modification. 
 
New Legislation and Regulations 
------------------------------- 
 
¶4. (SBU) Other food and product safety-related legislation for 2008 
includes: 
 
-- Entry/Exit Health and Inspection Law: This law covers 14 
communicable diseases, including SARS, as well as chemical and 
nuclear threats. It will be compliant with WHO international 
standards.  This draft law will be submitted to the NPC in 2008. 
 
-- Measurement Law: This law covers measurement of packaging, 
measuring instruments, and responsible agencies.  A draft has been 
submitted to the State Council Legislative Affairs Office (SCLAO). 
 
-- Standardization Law: The law will facilitate the harmonization of 
10,000 Chinese standards to international standards.  Liu said that 
government agencies will solicit input from industries in the 
revision of these standards.  The draft law has been submitted to 
the SCLAO. 
 
-- Product Recall regulation:  This law will serve as an umbrella 
recall regulation to cover all products not already covered under 
food, toy, and automobile recall regulations. The law has been 
drafted and is now in a public comment period. 
 
-- Quality Award regulation: China would like to establish a 
corporate quality award modeled on Japanese and U.S. awards, such as 
the National Institute of Standards and Technology Malcolm Baldridge 
Award instituted in 1987.  Liu said he would like to conduct a study 
visit to the United States for further research on establishing a 
similar award in China. 
 
-- Special Equipment regulation: This regulation covers safety 
supervision of elevators, industrial boilers, and cranes.  Energy 
efficiency is a component of the law and AQSIQ will have a 
responsibility for advocating energy efficiency in these equipment 
categories.  Liu noted that of 2.1 billion tons of coal consumed 
annually in China, 1.7 billion tons is used in industrial boilers 
(for power generation).  This regulation has been submitted to SCLAO 
and might be approved in 2008. 
 
-- New Import/Export measures: On January 10, AQSIQ notified the WTO 
of a new draft rule "Measures for the Administration of Inspection, 
Quarantine, and Supervision of Imported and Exported Food" 
(G/SPS/N/CHN/104).  This measure will likely have a significant 
impact on food and agricultural trade with China. It gives details 
about the inspection process an requirements for both mported and 
exported oods.  Some of its key provisions follow the diection and 
spirit of the Food Safety Law now nder review. 
 
Leading Group: No Stamp of Approval 
----------------------------------- 
 
¶5. (SBU) The Food Safety and Product Quality Leading Group chaired 
by Vice Premier Wu Yi did not have to approve of the Food Safety Law 
draft before it went to the NPC, Liu said, but participating 
agencies were able to submit comments.  Asked specifically if the 
Leading Group had an opportunity to vote on the adequacy of the law, 
Liu said there was no vote. 
 
Comment 
------- 
 
¶6. (SBU) AQSIQ's new role in overseeing energy efficiency in special 
 
BEIJING 00000360  003 OF 003 
 
 
equipment takes the agency into a regulatory area not previously 
within its purview. The move illustrates the importance China places 
on the incorporation of energy efficiency into existing regulatory 
frameworks.  With regard to establishing a quality award for China, 
post will assist in arranging AQSIQ's visit to the United States 
with appropriate interlocutors. 
 
¶7. (SBU) The draft Import/Export measures law is a mix of old and 
new regulatory authorities. Much of the document repeats goals and 
authorities already established in other laws or regulations. 
However, there are sections that codify certain ad-hoc measures 
taken in the past and include new requirements that will disrupt 
trade.  Certain strict regulatory requirements previously applied 
only to Chinese exported food and agricultural products would now, 
in this law, be applied to imported products as well. Thorough 
examination by the Interagency SPS group for WTO consistency and 
follow-up is warranted. 
 
RANDT