Associated Press is out with a report today that China again has discovered cancer causing toxins in baby formula distributed in the country. Again, this is done not because it is planned but because its not. Its cheaper to not inspect, not check, not test if the product is safe if one can get away with it. Once one firm gets away with it, this drives out other firms who are doing it right which means they have a higher cost. It will always be about shaving corners going from the legal to the illegal. (China is not unique – the financial markets in the money centers have been doing this for the past decade – see the LIBOR scandal for just one example).

From the report:

A cancer-causing toxin linked to mildewed cattle feed has been found in baby formula in China, an official said Monday, the latest quality problem to plague the nation’s dairy industry since a 2008 tainted formula scandal that caused six babies’ deaths.