Recalls of toys. Allegations of poisoning. Chinese exporters are
under fire. And the recent wave of safety-related accusations in
business and global media is raising the question among Chinese:
What is this all about? Is it just another round of politically
motivated demonization?
But there was good news from Washington last week, with a joint
petition signed by more than 1,000 economists led by four Nobel
laureates to dissuade the US Congress from enacting protectionist
laws against China.
At the same time, a group of Congress members unveiled a
bipartisan legislative package designed to expand US engagement
with China and increase American competitiveness in the global
marketplace. It included a bill to boost support to small- and
medium-sized US businesses exporting to the Chinese market.
In fact, no matter how emotional the China critics get, this
will not become a lasting campaign. And it's even less likely to
turn into blatantly anti-competitive legislation - even though it
comes as the presidential campaign heats up.
This current round of China bashing is unlikely to get any worse
than the criticism directed at the country in the late 20th
century.
But although businesspeople may do well to ignore protectionist
arguments from politicians, they should respect feedback from
consumers. Safety concerns are fully legitimate. There should be
zero tolerance when it comes to food and anything given to
children.
Since China's entry to the World Trade Organization, more and
more local companies have begun exporting. Some of them are small.
Some make the same goods and supply to the same brands.
Chinese-made products have become so ubiquitous that it may be
nigh on impossible for Americans to do without them. At least
that's the conclusion reached by Sara Bongiorni in her book A Year
Without 'Made in China'.
During Bongiorni's one-year experiment, she confessed: "I ended
up spending almost $70 for tennis shoes for my son, compared to $10
or $15 for those from China."
With such a high level of business activity and so many
suppliers serving numerous customers, any loopholes, any instances
of lax regulation or misconduct - whether by manufacturers or
merchants - can easily lead to mishaps. It is time for Chinese
exporters to do something to provide a better service to their
customers.
Rising safety concerns in the Western press should not be viewed
as just China bashing. It is not purely politically motivated. And
while analysts can always argue that politics is behind it, for
businesspeople there is no time to waste.
Exporters mindful that "putting people first" actually means
putting lives first will be compelled to act more competitively not
only in price and overall cost-effectiveness, but also in quality -
and safety.
What governments can realistically do to protect the interests
of both small Chinese companies and importing countries' consumers,
is to work out a better system to reinforce trade standards and
ensure quality.
The government, of course, should take the lead on this. This
economy cannot always compete on speed and cost. And if it does not
shift to include being safe and clean when it has already got the
money to do so, it will miss a huge opportunity.
(China Daily August 6, 2007)
