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Q: How do people here cope with all the health/safety scandals?
Speaking from a personal standpoint, I'm increasingly becoming disgusted, yet simultaneously desensitized by all the food scandals, the health scandals, the fake scandals, the XYZ scandals taking place in China.
I've almost come to EXPECT them as business as usual. Is this the mentality people have adopted in China? Our countries all have their share of scandals, but it's dwarfed by what happens in China. How do people not go mad? How do people trust ANYTHING here?
If this was my country, I'd probably have lost hope already and moved out. I guess I admire Chinese people's resilience.
I, personally, stick my head in the sand. Most people here seem to do the same.
Foreigners caused all health scandals to reduce China's birth rate and population and make an invasion easier.
Or did you think it was possible for a Chinese man to do something wrong? Maybe you're just trying to cover something up, foreign devil.
As you said, people here are simply desensitized to the almost daily scandals. It is an expected cost of living here.
Normally, the procedure is:
A) Get really upset/concerned
B) Vow to not buy/use products from the company in question
C) Post many angry comments in online forums
D) Oooh, look! Something shiny...
Rinse and repeat as needed.
Not much we can do, really, except move back home. So when I do get concerned with the latest scandal, I usually drink a beer and consider if I were to kick the bucket tonight I have pretty much done everything I wanted to do. I think Xpat J summed it up best. It IS rather cyclical...
I still buy milk everytime I go to the grocery store. Because, f*ck it. 
If it makes money is the Chinese mentality. Actually, remember the milk scandal, the parents of the dead babies were asking for 80k for compensation, the drowning boys and the hero of a teen couldn't get rescued because the boat drivers were asking for 50k to save them
