First, western fast food joints in China aren't cheap. In America, when you eat the crap that fast food places serve up you at least don't have to spend much money. That can't be said for China.

This is long overdue but finally they are taking steps to curb food safety and supervision here in China. They talked about it before but it finally went into effect.

Mainland same-store sales at KFC and Pizza Hut are down. Why that's a troubling sign for Western fast food. Yum! Brands (YUM) has done remarkably well in the battle to win Chinese hearts and bellies, but some investors are now wondering whether the fast-food giant is faltering. Fears that Chinese tastes may be shifting away from Yum's KFC and Pizza Hut chains have hobbled the company's shares.

In the west we have no problem categorizing food as "Mexican", "Italian" or "Chinese", even if the food these restaurants provide bear no resemblance to the dishes served in those respective countries. China, however, tends to define people and food geographically. Not a big deal unless you're a minority in one of the "autonomous" regions.

Let me start off by saying this: I like Chinese food. In fact, I have never disliked Chinese food. Over the years I have been asked this question many times by many many Chinese people, and the answer has always been, and will continue to be a resounding yes. Chinese food is great, I have nothing against it.

One of my favorite activities in Chengdu was sitting out and eating street food. Six years later I still love the food, but try to avoid the dirtiest spots. Hole in the wall restaurants and snack stands used to be a badge of honor for me.

The official Chinese news agency Xinhua says recent food scandals have prompted China's legislature to impose nationwide food safety rules.

Citing blueberry-flavored potato chips, strawberry and milk-flavored Cheetos and aloe juice from Minute Maid, Hatton says that it seems like every major U.S. food label, “is trying to bite into China’s $186 billion fast food and processed food industries by creating new products made just for Chinese taste buds.” Other strange American-Chinese products?

Food exports have dropped by 30% to Japan, which is a key market for Chinese food products. As long as the government refuses to tackle this issue head on, then China really has no one to blame if Japan or other countries decide to start consuming less food products from China.