The new system, which enables customers to dial a number to verify if their batteries are genuine, has apparently dealt a heavy blow to manufacturers of fake products.

"We will promote the system across the industry and spare no efforts in finding fake goods producers and dealing with them," said Wang Jinzhong, secretary-general of the association.

The move came due to the urgent need to curb the rampant spread of fake batteries.

China has some 50 mobile phone battery companies, which produce 50 to 60 million quality batteries every year, according to the battery association.

About 40 million batteries are sold a year, bringing in 4 billion yuan (US$483 million), but more than a half of the market has been devoured by about 1,000 fake product workshops.

Wang said more than 70 percent of producers of quality products are idle due to fake goods.

A report by the State Bureau of Quality and Technical Supervision released on March 15 showed that 31.2 percent of Ni-H batteries on the market failed to pass quality checks.

Another inspection conducted by the bureau in Beijing, Tianjin and the provinces of Guangdong, Zhejiang and Fujian last year revealed that although more than 90 percent of batteries checked at factories were good, only one-third of products circulating on the market were qualified.

Most fake batteries are made manually with used battery cores. Fake Ni-H battery sell at about 160 yuan (US$19), making a profit of more than 100 yuan (US$12).

Major batteries makers in China, like the Guangdong-based TCL and Desay, have lowered the prices of their products significantly - some Ni-H batteries are now sold at 60 yuan (US$7.30) - in an effort to beat the fakes.

However, many companies believe that enhancing customers' awareness of the need to buy quality products is more important.

"We are going to spread our experience in educating customers in South China to other parts of China, especially Beijing," said Wei Hongxing, a marketing executive of the Guangdong-based TCL Battery Company, which produces 5 million mobile phone batteries.

The Desay Energy Technologies Co., Ltd, another major battery maker, recently established the first free battery inspection centre in Wuhan to help customers differentiate between quality batteries and fakes.

Wang Jinzhong of the battery association also urged the government to draw up stricter laws and regulations to get rid of fake goods producers.

"We can reduce the amount of fake products and protect quality producers," he said. "But only the State can exterminate the fakes completely."

The State Bureau of Quality and Technical Supervision has in fact already released stricter battery quality standards, which will be effective from July, to regulate the market and check fake products.

(China Daily 04/16/2001)