In a recent exposé, the oil tanker transportation industry in mainland China has been revealed to engage in the unethical practice of transporting cooking oil without proper cleaning after carrying coal-derived oil, shedding light on a dark side of the industry. The state-owned enterprise, China Grain Reserves Corporation (Sinograin), was targeted as the main culprit, drawing sharp criticism from official media. However, overseas experts believe that such misconduct is a result of systemic corruption within the Chinese Communist Party, reflecting inherent issues in the party’s structure.
The oil tanker transportation sector in mainland China has come under scrutiny for the mixing of industrial and edible liquids during transportation. Huifor Oil Group, a state-owned enterprise and a key player in China’s national agricultural industrialization, was named, alongside Sinograin Group, responsible for the operation and management of central grain reserves which includes central reserve oil.
Following a series of food safety scandals including tainted milk powder, Chinese consumers have become increasingly sensitive to food safety issues. The exposure of oil tankers mixing industrial and edible oils has triggered a significant public outcry.
State media CCTV criticized Sinograin for its unethical practice of using oil tankers to transport coal-derived oil and cooking oil without cleaning, likening it to poisoning. Meanwhile, Southern Metropolis Daily commented that such practices could endanger consumers’ lives. However, some mainland media outlets disclosed that such irregularities have been occurring as early as 2013.
Professor Feng Chongyi from the University of Technology Sydney stated on July 9, 2024, that the practice of loading industrial oil followed by edible oil in oil tankers only highlights a lack of basic respect for life in China, calling it a country where tainted food products are rampant.
He pointed out that the extreme corruption within the Chinese Communist government leads to a situation where despite the facade of anti-corruption campaigns, money can easily facilitate bypassing food safety checks.
Regarding the recent revelation of oil tankers mixing coal-derived oil and edible oil, Wu Se, a researcher at the Cross-Strait Policy Association and a consultant committee member of a Taiwanese think tank, expressed to Epoch Times that such problems have long existed in mainland China, closely tied to the lack of accountability in corporate responsibility and the absence of rule of law in the Chinese political system.
“In any country, there will be bad actors or those with low ethics, but with a proper system of public power and government oversight, such issues can be swiftly addressed. However, the Chinese Communist Party is an extremely hypocritical and corrupt regime, hence the lack of food safety measures,” Wu said.
Beijing’s local media, The Beijing News, reported on July 2 that after a long investigation, journalists found that Sinograin used oil tankers to transport both coal-derived oil and food items such as cooking oil, soybean oil, and syrup.
A tanker driver disclosed to The Beijing News that due to cost-cutting measures, the transportation industry openly mixes the transportation of food and industrial liquids without cleaning in between. Coal-derived oil is a chemical liquid derived from coal processing, including liquid wax and white oil. This practice of mixing without cleaning has been an open secret in the transportation industry.
Experts in mainland China warned that coal-derived oil primarily consists of hydrocarbons and prolonged consumption could lead to poisoning and affect blood function. Moreover, transporting edible oils in tankers also used for other chemical liquids poses unforeseeable risks.
While the Chinese officialdom has established food safety laws and regulations, reports by mainland media outlets suggest that the enforcement, especially with regards to bulk transportation of edible oils, remains lax.
Feng Chongyi emphasized that due to corruption, all regulations in China serve as tools for rent-seeking. “With more regulations, there are greater rent-seeking opportunities, leading to more corrupt practices, ultimately causing the regulatory mechanism to fail.”
Representatives from Huifor Oil Group, one of the named companies, stated that government agencies have intervened for checks. The Sinograin Oil and Fats (Tianjin) Co., Ltd., another implicated company under Sinograin Group, has initiated a full-scale investigation.
However, according to reports from Chinese media outlets like China Newsweek and Southern Metropolis Daily, companies implicated in the mixing of industrial and edible oils are now attempting to distance themselves from the controversy.
On July 8, Huifor Oil Group responded to media inquiries about a tanker entering its premises, claiming it was not their tanker, and reassured that their “Huifor” branded oil was of good quality with no issues.
Several listed companies such as Jinlongyu, Daodaoquan, Xiwang Food, and Jingliang Holdings have also denied any involvement in the scandal.
The edible oil brand under Sinograin, Jinding Taobao flagship store, suddenly took down its products from online shelves, with customer service attributing it to warehouse maintenance before a re-launch.
Wu Se pointed out that under the Chinese Communist rule, there are two systemic pathologies. “Firstly, the issue lies with the party. In relevant incidents, the party’s rule inclination is not to prioritize people’s interests but to focus on the stability of their regime, leading them to take measures to ‘sound loud but act small’, ultimately going easy.”
He added, “The second systemic issue is that in China, where major corporations often have government ties, such as Sinograin, when state-owned enterprises face food safety issues and media expose them, it becomes extremely challenging for them to consider the interests of the people or consumers.”
Wu highlighted that if the same incidents occurred in Taiwan, society would increase its focus on related products, the government would take actions, media would continue supervising, and companies would need to improve their image through various means, investing more resources to resolve issues. However, in mainland China, this aspect is severely lacking. On the contrary, the Chinese Communist Party is increasing its control over public opinion.
Many netizens criticized that Chinese officials benefit from a special supply system and are indifferent to such issues. Feng Chongyi clarified that the scope of individuals enjoying special provisions is limited, reserved for high-level officials. Thus, most Communist Party officials are also victims, and cancer is prevalent in China, affecting both officials and ordinary citizens.
Wu Se lamented that while the affluent can purchase better imported oils as substitutes, the majority of the population, especially the middle and lower classes, are left to consume problematic oils or food. “What’s most concerning is the increasing apathy and selfishness among the public. Coupled with the fear of criticizing the government leading to personal safety risks, individuals self-censor. In a society indifferent to these issues, the entire society ultimately suffers.”