From what I understand you need to monitor your bird's droppings to figure out their general health. Since this is chunks of paper, it is hard to do that since alot of the mess would be absorbed into the paper. It is also easier for them to eat this and it wouldn't be digested all the way.

It contains baking soda

Absolutely not. Chinchillas, due to in breeding, have exceptionally delicate digestive tracts. They're prone to chewing like most rodents, and when combined with saliva will expand and create a blockage in the chin which will either result in a complete blockage, a prolapse, or at the very least will be very traumatic for your chin's normal body functions. The safest bedding is aspen, kiln dried pine, fleece, or ceramic tile.

No it is not.