Recently, a report was released by the state media outlet Beijing News, outlining a concerning scandal involving the dual use of tankers for edible and chemical oil.
In response, the food safety office of China's State Council has announced the formation of an interdepartmental team to investigate the transport of edible oil and promised severe punishment for any misconduct according to the law.
The investigation exposed instances of tank trucks transporting edible cooking oil immediately after carrying chemicals used in coal-to-liquid processing, without cleaning the tank interiors between loads.
The report's author, Han Futao, brought to light the involvement of Sinograin, China's largest grain storage and transport company, and the private conglomerate Hopefull Grain and Oil Group in this scandal. This has raised concerns about food contamination in a country that has had its fair share of food and drug safety incidents.
State broadcaster CCTV has condemned this alleged practice, equating potential food contamination from leftover fuel in the tankers to poisoning. The People's Daily has urged regulators to take action, emphasizing the paramount importance of food safety. Some individuals have linked this situation to broader societal issues in the country, including economic challenges and concerns about accountability for powerful entities.
Sinograin has announced inspections across its operations and pledged to stop working with transport providers violating safety regulations. Meanwhile, Hopefull Grain and Oil Group has stated that relevant departments are investigating the matter and will issue an official statement. The company has denied ownership of the tanker described in the report and has asserted the quality of their oil products.
As of now, no product recalls have been announced.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.