Chinese School - Tackling the safety scares

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BIZCHINA / Review & Analysis

Tackling the safety scares

(China Daily)
Updated: 2007-09-22 14:52

Supervision and communication should be enhanced to tackle the crisis
faced by made-in-China products, said an article in the Hong Kong-based
Wenweibo newspaper.

Made-in-China products are under fire after a spate of reports revealed
cases of unsafe toothpaste containing DEG and toys decorated with lead
paint, which sparked global concern over Chinese products in general. Are
made-in-China products really problematic or has the issue been played up
by foreign media?

Related readings:
?China promises lead-free toy export to US
?Investigation aims to ensure toy safety
Export: Most toys recalls not attributable to manufacturers
China to become US's 3rd largest export market

Authorities from the Ministry of Commerce and the General Administration
of Quality Supervision, Inspection and Quarantine are addressing the
safety crisis and using facts and data to safeguard the reputation of
Chinese products.

Statistics show that over 99 percent of Chinese food exported to the
United States, the European Union and Japan were qualified in the period
from 2004 to the first half of 2007. Japan has the world's strictest
standards on food hygiene and according to Japan's Ministry of Health,
Labor and Welfare, the acceptance rate was 99.42 percent for food
imported from China, 98.69 percent from the United States and 99.38
percent from the European Union. This shows Chinese products are at a
high level in terms of quality.

For sure there are Chinese firms that are producing or selling
counterfeit products. But the overall quality of Chinese exports must not
be doubted.

It is inspiring that the quality of made-in-China products is improving
steadily. Chinese products have reached an advanced level in industries
like non-ferrous metals, petrochemicals and consumer goods. The
performance of the country's high-tech products has also improved greatly.

Over half of China's exports involve process manufacturing. The processed
products are made according to the requirements of foreign clients and to
international standards. More than 58 percent of the products are
exported by foreign-invested companies. Countries all over the world
participate in the China-made field. If the made-in-China label is
damaged, the interests of other countries will also be harmed.

More complicated reasons are also behind the doubts being cast over
Chinese products.

Trade protectionism is the major one. China's trade surplus has risen
dramatically in recent years. Many countries have complained that
low-cost Chinese products are affecting their domestic industries.
Experts point out that trade conflicts cannot be ignored when the quality
issue of Chinese products is raised.

But Chinese products are not only facing crisis at the trade level.
Economic growth is also an important factor.

Process trade is the major driver for economic growth in many regions of
China. An extensive economic growth model has been established on low
labor, raw material and energy costs. The huge trade surplus has led to
an imbalanced economic structure in China. China-made products have
fallen into a cycle of low prices, trade conflicts, restricted exports,
oversupply of products and structural imbalance.

In the long run, the economic growth model should be changed to resolve
unceasing trade conflict and to guarantee the sustainable growth of the
Chinese economy.

(For more biz stories, please visit Industry Updates)

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