Milking trouble

Milking trouble

Over the past few months, a severe shortage of milk powder has strained Hong Kong-mainland relations. Many people blame traders who buy goods in Hong Kong to be sold on the mainland. Parallel trading is not a legitimate economic activity and should be abolished.

Several solutions have been suggested to end the uproar over the lack of infant formula. These include the scrapping of multi-entry permits, restricting the export or sale of milk powder, setting up a shopping area at the border and passing a competition law.

All of these have pros and cons, but we must remember that even if this crisis is resolved, there will be more to come.

As China and other developing countries progress, the demand for goods will surge. And developed and developing countries/regions will have to compete for different products.



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