HAZARDOUS TOYS, FOOD THREATEN US-CHINA TRADE

September 01, 2007 | BY

clpstaff

Reports of toxic toothpaste, tainted pet food, contaminated seafood and now lead paint in toys have continued to raise fears among US consumers about the…

Reports of toxic toothpaste, tainted pet food, contaminated seafood and now lead paint in toys have continued to raise fears among US consumers about the safety of Chinese products. While debate continues in both countries, response from officials in the PRC has included both immediate and preventative actions, as well as publicly encouraging Chinese citizens to report safety violations. The delicate balancing act of managing international public perception has taken a unique twist as the US has become critical of the effectiveness of China's domestic laws.

China is sparing no effort in preventing such news from tarnishing its image abroad. Just prior to the one-year countdown celebration for the 2008 summer Olympic Games, at which the slogan of the hour was “We Are Ready”, the Beijing organizing committee announced measures that it says will assure athletes of healthy food and sound air quality during the Games. This includes, among other measures, both improving the market entry system for food suppliers, and requiring that all food entering the Olympic Village carry a logistics code to enable tracking.

But more drastic measures have also been taken. In May, the former head of China's State Food and Drug Administration was sentenced to death for taking bribes in cash and gifts worth more than Rmb6.49 million to approve substandard medicines, which included an antibiotic blamed for at least 10 deaths. Beijing's No.1 Intermediate People's Court convicted Zheng Xiaoyu, one of the nation's most powerful regulators, after he pled guilty to corruption and accepting bribes that allowed eight companies to get around drug approval standards.

More recently, China suspended exports by two local producers and will pursue criminal investigations after US company Mattel recalled millions of Chinese-made toys tainted with lead paint. China's quality administration has said that the responsible factories, Hansheng Woodware Factory and Lee Der Industrial Co, both based in southern China, are banned from exporting until they correct the problems and become qualified.

In the statement, the quality watchdog blamed Lee Der's paint supplier for providing “fake lead-free paint powder”, and defended the country's toy products while saying that US toy importers also have a “very big responsibility” to prevent such problems.

“The overwhelming majority of toys made in China meet US standards. Of about 300,000 batches for export in 2006, the US Consumer Product Safety Commission only made about 29 recalls,” it said.

Despite such assurances, US consumers are highly concerned. Even before the announcement of a massive recall of Chinese-made toys by Fisher-Price, a poll by Zogby Interactive found that the 82% of US respondents were concerned about purchasing goods from China in the wake of previous media reports about faulty goods from that country, including reports of excessive levels of lead in toys.

About 63% of poll respondents said they would likely participate in a boycott of Chinese goods until the country implements stricter safety regulations. While Chinese leaders claim the US is exaggerating the problems with Chinese goods in order to discredit China as a trading partner, 72% discount this claim. Americans are split over how seriously the Chinese government is taking reports of recent safety recalls of products imported to the US from China: 45% believe the Chinese government is taking the recalls seriously, and 46% remain sceptical.

Of the poll respondents, 89% believe the US government should put stronger pressure on China and other foreign countries to increase product quality and safety standards, while 85% would support the US government imposing stronger criminal penalties and fines on US importers who allow dangerous products to be imported from foreign countries.

Nearly half of the respondents in the Zogby Interactive poll said they will continue to buy products from China, while 43% said it is not very likely or not at all likely they will continue to buy Chinese products. Given the amount of products sold in the US that originate from China, following through with such intentions, not to mention finding a cross-border solution, will prove to be difficult.

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