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    China Business
     Oct 10, 2007
SUN WUKONG
China choking on its own tainted goods
By Wu Zhong, China Editor

HONG KONG - Despite the fact that some of the criticisms may be exaggerated, the foreign backlash over the quality and safety of China's exports have forced Chinese authorities to face the problem and further vow to strengthen national production standards.

The furor has also drawn public attention to the quality of China's goods for its domestic market, a factor that has put more



pressure on authorities to clean up their act and safeguard the "Made in China" reputation at home and abroad. And compared to exported goods, the overall quality and safety of domestic products is vastly inferior due to a serious lack of supervision.

China has generally taken more care with the quality of its exports, if for no other reason than to "save face" for the country in the world's eyes. Under Mao Zedong, China ensured that the goods it exported or donated to allied countries, were the best quality. In fact, during the brief, bloody Sino-Vietnamese border war of 1979, many People's Liberation Army soldiers were reportedly very upset after they found that Chinese-made weapons used by the Vietnamese against them were better than their own.

This may partially explain why Chinese product safety officials have been so sensitive about foreign criticisms. Though they should at least partially shoulder the blame and move on with an eye towards better oversight rather than trotting out excuses that they they were overworked and understaffed due to the rapid fire growth of China's export market.

One of the results of lack of supervision is the rampant amount of pirated goods on the Chinese market today, a situation for which the Chinese consumers themselves should also be blamed given their thirst for flouting western brand names, whether it's a fake pair of Nikes, a phony Dunhill shirt, a bogus Gucci purse, dodgy Oscar de la Renta shades or simply watching a bootlegged Hollywood release on DVD. The prices are cheaper than the real deal and the consumers rarely if ever concern themselves with trademark and licensing issues.

But this mentality also trickles down to the level where Chinese consumers are now literally eating the tainted fruits and ingesting the fake medicines of their own slipshod labors. No greater example can be found than during the traditional Chinese "golden week" holidays (Lunar Chinese New Year), May 1 Labor Day, and October 1 National Day - when fake foods and liquor abound on the Chinese market.

According to Chutian Metropolis Daily, authorities in Enshi city in the central province of Hebei launched a check on the local liquor and wine markets on the eve of the National Day holiday. They found half of the of brand-name Chinese baijiu (white liquor) such as Maotai or Wuliangye on sale in the city were fakes. More astonishing, 90% of the so-called imported brandy, whisky and wine served in entertainment venues and restaurants surveyed were counterfeit. And in Dongguan, a boom city in the southern province of Guangdong, authorities recently smashed a backyard beer brewry that was producing fake brand-name hooch using chemicals harmful to humans.

Some Chinese commentators have pointed out also that the problem isn't just greedy consumers and quick-buck artists - it's also often rooted in the collusion between government officials and entrepreneurs. "The problem is, many restaurants and entertainment places are run or shared by local law enforcement officials," one wrote.

An owner of a transportation company in Shenzhen said: "Nearly everything can be faked as long as it is sellable. Once a product becomes popular, soon you will find the fake one on the market."

In the wake of foreign criticisms of quality and safety problems of Chinese made good, Shenzhen authorities recently launched a campaign to crack down on the production and sale of fake goods, vowing to rid the city's reputation as "paradise of fake products". It follows a nearly identical locally heavily publicized "smash fake goods" campaign nearly a year ago, and others like it in the years before.

The Shenzhen transportation company owner said he was aware of the pattern and that the campaigns do little or nothing to quell the country's counterfeiting woes. "This is not a Shenzhen problem but a problem across the whole country. Hence Shenzhen's efforts alone can never solve it," he said.

The foreign criticisms have provided a good opportunity for the Chinese government to face up to its quality control problems and with its rocketing revenue, Beijing has more than enough money to spend on recruiting and training additional personnel throughout the nation to ensure quality goods both for domestic and international consumption. Needless to say, Beijing also must redouble and sustain its current crack down on official corruption.

And the Chinese government may also need to consider opening up media and public disclosures on the issue. Exposure by the media often proves to be more of a deterrent than government edicts, but the chances of an unfettered press in mainland China are remote to say the least. And incidents such as phony television news story about "cardboard buns" laced with chemicals and pork flavoring which originally aired on Chinese state-television in July and then was spread by western media only make the situation worse. The story was a hoax, but its exposure as a phony news story was eclipsed by the original TV-spun urban myth about "cardboard buns".

Ultimately it is Chinese acceptance of a counterfeiting culture that enables the practice to flourish and changing it could take generations. As a Chinese proverb says: "It takes more than one cold day for a river to freeze three feet deep." Only when the majority of Chinese consumers become willing to freeze out fake products will the malpractice be wiped from the Middle Kingdom.

(Copyright 2007 Asia Times Online Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)


Mattel's mea culpa too little, too late (Sep 27, '07)

China struggles to digest food safety laws (Aug 28, '07)

China's about-face on product safety (Aug 3, '07)


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