The scandal broke after 16 infants in Gansu Province, who had been fed on milk powder produced by Sanlu Group, were diagnosed with kidney stones. After the initial focus on Sanlu, the market leader in the budget segment, government inspections revealed the problem existed to a lesser degree in products from 21 other companies, including Mengniu, Yili, and Yashili.
The issue has raised concerns about food safety and political corruption in mainland China, and it has damaged the reputation of China’s food exports.