Chinese products are getting a bad name as a result of a series of scandals involving mattresses, toys, clothing and other goods intended for export. Economists do not expect the commotion surrounding Chinese exports to put an immediate dent in China's strongly developing economy, even if mistrust among retailers and consumers is growing. "Made in China" is certainly not a recommendation.
While the quality of Chinese products is a matter for concern, it is interesting that the issue is attracting so much attention all of a sudden.
According to Annette Nijs, director of the Europe China Institute at Nyenrode University in Breukelen, products have been returned to China on a daily basis for years: "Eighty percent of all the textiles and toys sold worldwide come from China. So if there's anything untoward, it's not long before the word 'China' enters the discussion." Poison
The storm about Chinese export products might have blown over were it not for the fact that more negative news followed hot on the heels of the reports on the returned toys. In New Zealand a high concentration of a carcinogenic substance was recently discovered in a consignment of T-shirts, trousers and pyjamas from China, and Dutch producer Beter Bed rejected a shipment of mattresses from China that had been sprayed with a poisonous chemical to prevent infestation.
Who is to blame for the goings-on in relation to Chinese export products? Annette Nijs points the finger at the Chinese authorities, which should have imposed better security requirements on the manufacturers. But she also mentions the authorities in the West, who should be keeping a closer watch.
KEMA certification
Clear regulations, greater supervision and more control. All this is needed to keep products that could cause harm off the shelves. KEMA, the Dutch research institute for the electricity sector, which is also active in China, knows better than anyone how important checks and inspections are when it comes to product safety.
According to CEO Pier Nabuurs, half of the Christmas lights imported from China do not make it through the safety checks. "We can buy 100 little bulbs for 1.50 or 2.50 euros in the shops. Prices like that put enormous pressure on purchasers at the distribution companies, the importers and the department stores. Under those conditions there's bound to be a very high risk that people will use inferior plastics, or a little less copper, or slightly thinner glass in the bulbs."
The Chinese government has now launched a charm offensive to calm things down. Later this month a Chinese delegation will leave for the US to discuss product safety.
Economists do not think that China will encounter immediate problems due to the commotion about its export products. Apart from a handful of exceptions, the demand for toys is not likely to decline. Nevertheless, the Chinese authorities have literally "declared war" on contaminated foods and other export products, launching a four-month campaign to prevent new scandals and spruce up its trade image.
A different view
Dutch businessman Jan Kemeling takes quite a different view of the situation. As he sees it, the quality of Chinese products has improved greatly in recent years. The Dutchman is based in the Chinese city of Shanghai where he works to design and develop consumer electronics for the European, American and Australian markets. But the fierce competition between the buyers of Chinese export products, such as the European and American chain stores, makes life difficult for Chinese producers.
"It's like this: a Western company tells the Chinese that they have to make something that costs 10 euros, even though they know that the raw materials cost 15. So it stands to reason that the Chinese are going to take something out to arrive at that price of 10. They are going to look for ways to save a bit of money. Which means buying in cheaper paint or cheaper steel or whatever. And that's when the quality starts to slide."Kemeling therefore argues in favour of stricter regulations and fines for companies that bring faulty goods into circulation. He lays part of the responsibility at the door of Western companies and consumers. They have to realise that Chinese products cannot simply keep getting cheaper and cheaper while the prices of raw materials go up.
* RNW translation (dd/tpf)
Tags: cheap, china, dangerous, economy, export, goods, growth, mattel, mattresses, paints, quality, toys