Honeymoon’s Over for Sweethearts of SOE Reform

Corporate wedding bells were ringing in 2011 when a trust controlled by insurer Ping An Insurance Group forged a partnership with a Shanghai-based cosmetics maker called Jahwa Group and its listed subsidiary, Jahwa United.

The tie-up was duly praised for diversifying Jahwa’s ownership in line with a Chinese government push to reform the shareholder structures at state-owned enterprises (SOEs).

Food Safety Scandals Bring Reality-Check to “Chinese Dream”

In the wake of China’s recent food scandal, Chinese premier Li Keqiang has vowed to enforce the toughest food safety regulations.

“We need to crack down on practices that violate laws and regulations with a heavy fist, and make the lawbreakers pay an unaffordable price for their illegal practices,” Li said at a national videophone conference last week.

“Although we have a tight budget, we’d rather spend more on food safety so that the public can be confident about China’s food safety,” the premier added.