Sunday, February 24, 2008

American Importers Share Responsibility For Unsafe Chinese Products

In its February 2008 issue, China CSR (Corporate Social Responsibility) reports that the American Society of Quality (ASQ) says that U.S. importers need to assume some of the responsibility for the inferior products being exported from China. Because quality-control is a relatively new concept to developing countries, American importers need to do their own assessment of incoming products.

Furthermore, as would be expected in a capitalist world, the privately owned exporters tend to have better equipment with better controls than government-run operations. To continue to compete in the global economy, China will need to implement regulations to ensure confidence in its products. Perhaps this will be one arena where strict control will benefit the country. Until then, according to ASQ, Taiwan is the best bet for reliable products.

Here’s the article in its entirety:


The American Society for Quality says much of the responsibility for quality problems that have resulted in Chinese product recalls lies with inadequate oversight by U.S. importers.

“Companies are so used to dealing with suppliers in the United States or Europe that comply with their specifications that they aren’t taking into account that the whole concept of quality systems is a radically new thing to many foreign suppliers in countries like China,” says Randy Goodden, chair of ASQ’s Product Safety & Liability Prevention Interest Group, in a press statement.

In addition to cultural differences and different business operating models, companies sourcing from developing economies are encountering an unfamiliar legal climate often providing no recourse for failure to uphold terms of a contract, document forgery or protection for intellectual property, according to Goodden. William Barthold, chair of ASQ’s Customer-Supplier Division, recently returned from a sourcing study trip to China, where he found a major difference according to types of ownership.

“We tend to find lackadaisical attitudes from government-owned suppliers where management staff gets a paycheck regardless of performance,” says Barthold in a press statement. “But privately-held companies are the best bet as they are investing in their future with newer equipment and more process and controls.” He adds that private companies with foreign management, such as Taiwanese owners who bring in their own managers and work styles, are the ideal combination right now in China.

Both Goodden and Barthold agree that importing companies need to take more responsibility for their inadequate assessment of risks in dealing with foreign suppliers, insufficient supplier development activity and a lack of discipline in applying quality basics with suppliers.

While the United States needs stronger consumer protection measures and an increased capacity of federal consumer protection agencies, ASQ’s new quality report identifies some other high-impact actions that outsourcing companies can take to make a difference.

With more than 93,000 individual and organizational members, the American Society for Quality advances learning, quality improvement and knowledge exchange to improve business results, and to create better workplaces and communities worldwide. As champion of the quality movement, ASQ offers technologies, concepts, tools and training to quality professionals, quality practitioners and everyday consumers.

For more information, go to http://www.chinacsr.com/

4 comments:

Gina said...

There is some truth in this. I read recently in the New York Times that the Chinese authorities didn't inspect a Chinese factory making the blood thinner heparin for Baxter International that was exported to the U.S. because the plant wasn't certified to make it. U.S. inspectors also didn't inspect the factory, which is a violation of its own policies. Because of this lack of oversight by the U.S., four patients died and more than 300 suffered complications.

Anonymous said...

The importers are the gatekeepers, and in both countries openness and full disclosure ought to be mandatory. Without it then products should be refused, and without a market, then they have to conform or quit. This should be a non-issue from a morality standpoint -- shouldn't both parties try NOT to harm if it's in our power? Shouldn't "do no harm" be a priority over profit? China needs its own modern-day Upton Sinclair to spur regulations that protect the safety and conditions of its citizen workers.

Angie S. said...

Lisa
My husband, as an importer, has to make frequent "quality control" trips to China. It is becoming so challenging, they are considering using factories in Thailand instead. They have found the working conditions of the employees to be better there also.
Angie

Lisa Eller said...

I agree that this should be a non-issue, especially when people's lives are at stake. It's almost as if the Chinese have to go through all the learning curves without benefit of what developed countries have already learned. It is a Jungle out there...still.