Compensation fund set up for tainted milk victims

The State Council has released guidelines to encourage domestic consumption, including measures to increase consumption in rural areas and raise government reserves of daily necessities.

The State Council announced 20 measures on Wednesday to boost consumption, focusing on improving infrastructure construction to increase the circulation of goods. The Council said China will continue efforts to enlarge the rural consumption market... and upgrade the transportation network for farm produce and farming materials.

As for urban areas, the State Council called for improvement of services in residential communities and moves to stimulate auto sales. The country will invest more in logistics enterprises, and help small-and-medium sized trading companies. In addition, new consumption hot spots will be cultivated, and people will be encouraged to use bank cards.

The council also urged local governments to establish emergency reserves of grains, edible oil and sugar.

China's Dairy Industry Association has provided more information on the medical compensation fund set up for babies harmed in the tainted milk powder scandal. Sanlu, the dairy producer at the center of the scandal, and 21 other firms also at fault have set up a fund for the sickened infants.

As yet, the specific amount of the fund or the compensation amount for each baby has not been revealed. The fund will be managed by China Life Insurance, the country's leading life insurer. Affected families can now get their medical bills reimbursed at China Life outlets nationwide.