Home > Business > International Business & Trade
Will warnings about the safety of Chinese products reduce China's dominance in global manufacturing and trade?
Results so far:
| No | 55% | 275 votes | Total: 504 votes | |
| Yes | 45% | 229 votes |
No
by Mak
Created on: November 18, 2007 Last Updated: October 04, 2011
Warnings about the safety of Chinese products are not likely to have significant effect on demands of Chinese products. Products of China are of diversified quality, catering needs of various parts of the globe. They try to cater to the needs of both rich and poor. Quality and price for similar products intended for richer countries may greatly differ from that intended for poorer regions of the world.
For many, China is still the source of most economic manufacturer of various essential products like small engines, motorbikes, electronic items, toys and so on. Intended buyers are aware that quality and durability of the products, they are ordering from China, may not be comparable with similar products manufactured in other developed countries, but cost plays a major role. China can produce diversified products at a very reasonable price from the advantages of cheap labor market and reluctant quality control implementation. Which will not be the case for many other countries to compete with China in terms of the cost of finished products.
Reason for producing tainted products by China are probably not intentional but due to lack of technological know how and lapses in quality controls in place. They tried to get over with by bagging larger bite of the market share ignoring other factors. This action had immediate effect on demands for China manufactured product from certain countries but very little adverse responses from wider region of the world looking for cheaper products.
The good gesture was that China accepted the lapses and manufacturers took step to rectify same, instead of arguing over it or going to court. Manufacturers of those products would have learned their lessons by the losses, but temptation will be their so long demand remains from somewhere. After all all the businesses are there to make profit as much they can do. Importers has also a role to ensure that manufacturing process meet their requirement before importing and distributing into consumer market. Purchasing contract agreement should have mechanism in place, so that products like those does not cross into their boarder.
For billions of poor of the world, terms like safety and environment friendly are still a luxury. Their aim is to fulfill the needs from cheapest source. In present days there are no other manufacturing markets, which can provide diversified products so economically except China. Therefore, recent safety warnings about some of the Chinese products will not likely have any significant effect on China's dominance in global manufacturing trade.
Learn more about this author, Mak.
Click here to send this author comments or questions.
Yes
by Djeem
Created on: August 17, 2007
Manufacturing and trade will always be affected adversely by bad publicity, particularly in this day and age when consumers demand more information about the products they purchase and expect manufacturers and suppliers to be more accountable. As has already happened in China's case, products have been removed from the shelves and with warnings about the reliability and safety of China-manufactured goods sales will inevitably fall as consumers become more wary.
Unfortunately for China, this wariness is coupled with a degree of anti-Chinese prejudice in the Western world. The corruption of the Kuomintang and the later excesses of the Mao era coupled with China's political system which is anathema to the democratic West combine to make China feared and misunderstood. The United States, in particular, fears China as a growing economic and military power and perceives China as a threat to its own global dominance. China has few real friends in the West and any opportunity to knock back China's progress will be seized by its opponents.
Chinese leaders are not blind to this. They know that America would dearly love to reduce the trade imbalance. They know that Western workers would delight to see major companies move their manufacturing plants back to their own countries. Hence they also know that any blight on their industrial integrity will be greeted in some Western circles with hidden delight, which is why they crack down severely on those in China who use shoddy or dangerous materials or circumvent quality controls in favor of making a quick profit.
Chinese goods are now tainted, even those which meet international quality standards will be subject to greater scrutiny. Many will heed the calls to ignore Chinese goods and Westerner manufacturers will think even harder about moving their operations to China. China's progress will inevitably stall to some degree. How much depends on how quickly China's leadership can impose tighter controls and restore faith in Chinese products. They will succeed - but when?
Learn more about this author, Djeem.
Click here to send this author comments or questions.
Write and get published
Share with other writers
Polish your freelancing skills
Quality articles from proven freelancers
Exclusive rights, fast turnaround
Brand engagement, business blogging -- our writers do it all
INFORMATION
Copyright © 2002-2012 Helium, Inc. All rights reserved.
Helium.com: A Service of RR Donnelley