Sham or shame: Rethinking the China's milk powder scandal from a legal perspective

The Sanlu milk powder scandal finally evolved into a nationwide dairy-industry crisis in China. This paper attempts to rethink this scandal from a legal perspective and the issue of systemic risk. The case is studied from five different perspectives, namely, China's legislation, regulatory system, supervisory system, approaches to systemic risk, and corporate social responsibility awareness. Finally, some policy implications are also considered, which form the basis of recommendations to decision-makers.