Primary school students in Zhumadian, Henan province, recently found that their strange-tasting milk was actually a fake product. An investigation determined that the director of each class could get a kickback of 5 yuan (80 cents) per student each semester for ordering the milk, says an article in the 21st Century Business Herald. Excerpts:

Such scandals are not new. The poisonous school uniforms found in Shanghai last year are of the same nature. Sales people pay off the teachers and headmasters to win the market. Such practices breach the rules of China's business administration.

As the Chinese government has made progress making its purchasing more transparent through open bidding and disclosing relevant information, the education system should also carry out similar reforms.

Japanese schools set good examples by organizing parent supervisory groups that have proved very effective in eliminating sales commissions. Chinese schools should do this too. It is easy and works well.