Spilt Milk - Should we be crying?

In recent news, milk from China has been found to be tainted with melamine, a toxic substance that has already made babies all over the country ill. The government has tried to reassure panicked parents that it is doing its best to track down, stop, and punish the source of these chemicals, but since then the tainted milk has been found in products as far as Europe and even here in the US. Some interesting questions to consider at this point:

-How long has the milk been tainted? Melamine, according to the BBC, is not harmful to older children or adults, in small amounts. And, the melamine might have been added to the milk "on purpose", to make it look more protein-ful. (BBC article 1)
-How much of the reaction, both within China and internationally, is just due to panic? (Munchhausen's, anybody?)
-How do other countries' food importing laws work, given that so much "tainted" food passed through their borders?
-What other kinds of food, from China and elsewhere, contains "additives" that could be causing long-term health effects? (To be taken with a grain of salt)

Possibly the most "exciting" and news-worthy event to happen to China since the end of the Olympics, the whole milk incident is hardly being swept under the rug by the Chinese government. Now with a new reputation of being able to keep up with the rest of the world, the Chinese government has already done much to try and prevent the incident from getting worse (BBC article 2)

But, despite however well the Chinese government responds to this incident, there's a deeper problem. Take a trip to China and you can see the entire range of food cleanliness, a roadside meat roaster for every top-of-the-line, upper-class restaurant. There are so many people selling food through one way or another that whatever governmental department in charge cannot possibly hope to keep up a high standard of clean food. Certainly the larger restaurants tailoring to the rich and the foreign will make sure they get their act together (hopefully), but as for those guys selling roasted meat on the street corners of Shanghai, who knows what was put on whatever-that-was...

A major problem for China that's usually masked by all the hubbub about political and economic news is that sooner or later, China will have to enforce laws that are for the good of the collective whole. And enforcing a new law, a new standard, a new procedure over 1.3 billion people (and counting) is never an easy task.