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China syndrome
Slipping confidence in the export colossus
Published August 16, 2007 at midnight
It's good to discover that American consumers aren't the only ones taking the scare involving lead-tainted toys from China seriously.
On Wednesday, BBC News reported that "They are packing up at the Lee Der toy company in southern China. The business is being closed for good. This factory once made millions of toys for Mattel, but with its reputation in ruins, the boxes of toys stacked in the firm's loading bay are going nowhere."
Perhaps even more significantly, "The company's boss, Zhang Shu Heng, committed suicide in one of the factory buildings, he was so ashamed by the scandal."
We're not pleased, of course, that the company boss committed suicide - any more than we were happy to see the execution of China's former chief food and drug regulator a month ago for taking bribes. But such reactions suggest that many Chinese appreciate, at least on some level, that the status quo is not good enough - that stricter quality control is essential if they hope to maintain their access to consumer markets around the globe.
Even before Mattel's recall Tuesday of 18.2 million Chinese-made toys that it distributes worldwide - and the hint that more recalls could be on the way - confidence in Chinese products had been shaken this year by a pet food scare and by contaminated toothpaste that the Food and Drug Administration warned U.S. consumers to avoid. Meanwhile, other dangerous products of Chinese origin have been surfacing outside the U.S., too.
On Wednesday, The New York Times reported that "Certain vinyl baby bibs sold at Toys 'R' Us stores appear to be contaminated with lead . . . making the inexpensive bibs another example of a made-in-China product that may be a health hazard to children."
Clearly, the cost-slashing and buccaneer approach typical of Chinese manufacturers, while resulting in marvelous bargains across an array of products, has its downside when it isn't accompanied by Western-style oversight and safety testing.
Still, it's important not to overreact to the current uproar. Calls for trade barriers or product bans,for example, are simply irresponsible at this point, with the potential for devastating economic impact. Remember, China produces an incredible volume of exports - including, according to BBC News, 80 percent of all toys sold worldwide. Even with the best quality systems in place, it's inconceivable that there wouldn't be occasional lapses and scandals.
For that matter, even the recalled toys for the most part do not appear to pose an imminent threat to children's health.
This is not to say complacency is warranted, either. It will be a long time before Chinese products are not treated with suspicion. U.S. officials must pressure their counterparts in Beijing to take further action, while shoring up testing of Chinese imports here at home. And following Mattel's example, U.S. companies doing business in China must ramp up their vigilance as well.
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