Wal-Mart staff arrested, 13 stores closed in China

BEIJING: A city government in China has ordered the closure of 13 Wal-Mart stores and arrested two of its employees on the charge of passing off ordinary pork as high-priced pig meat. Wal-Mart, which runs 3,000 stores in China's 120 cities, has also been fined $421,000 by the government of Chongqing in southwest China. This is the biggest action against foreign owned retail stories, which have been given lesser punishments for other violations in the past.Wal-Mart and Carrefour were each fined $421,000 earlier this year for overcharging on items sold by them. Some western lawyers dubbed it as excessive punishment for a relative smaller violation. But the state-run China Industry and Commerce News said the action was part of a food safety campaign launched by Chongqing, where local authorities are taking a "zero tolerance" approach toward violators. Chongqing is largely run by Bo Xilai, the Communist Party secretary who is among the provincial leaders seeking a top slot at the central party head quarters at the next party Congress in 2013. He has made a name for himself by cracking down on criminal gangs, prostitution and other organized crime.
The city led the way in cracking down on price hiking during the 20-month run on pork prices between 2006 and 2008. Investigations resulted in a Chongqing court giving a suspended death sentence to a pork mogul known as the 'butcher of Chongqing.' The pork trader, Wang Tianlun, was accused of using violence and threats and violence to corner 40% of the city's pork market. He was also accused of forcing buyers to purchase water-injected meat.