An observation of recent China product recall incidents and its affect within China
You recall China made toys; I forbid the import of American beef. You say quality issue, I say political pressure. You want the Yuan to appreciate; I want you to leave the Yuan alone.
Sounds like a quarrel between couples, but Chinese people think it is all about domination and power. It is an American tactic to portray China as the big bad wolf.
As far as I can remember, there have always been problems with safety and quality control of China-made food and products. This issue is, sadly, a product of rapid development, where demand for goods outruns the speed of proper legislation and control mechanism. Then you add up multilayer of corruptions within the authoritative bodies and the lack of unbiased media and watchdog groups, and you get unsafe toothpaste, poisonous toys, bleached rice, and contaminated cooking oil, dangerous drugs. You have thousands of people die or becoming ill due to what is called “black heart merchants’ products,” but in the old and closeted China, thousand of people amount to nothing when compared to the total population of 1.3billion.
My neighbor once joked that to truly resolve the problem, China needs another SARS like epidemic to really have the government stand up and fix the problem once and for all. But we are now 365 days away from the 2008 Olympics. And that changes the dynamics.
With China gearing up for the Olympics, the ultimate global platform to show its muscle, the country is under more scrutiny. China officials know that to be a global player, you have to meet the global standards, but there is just no time to fix all the problems and meet the standards before August 2008. Thus in a culture where “saving face” is as important as any political maneuvering, China has to “fight” back sometimes, and divert what seems to be a control issue to a political issue.
For my part, I believe things will change for the better. A government which has “A Harmonious Society” as its governing theme will take some actions to pacify its constituents, and at the same time probably discuss the necessity for a global brand campaign to re-establish confidence for “Made in China” products. All of these will be as powerful as the proliferation of the Internet and its role in reshaping the marketplace. With a click away to less bias information, consumers worldwide, and in China, will use their purchasing power to dictate which products will stay and which will fade. Market forces will come to play, only that within China, it will take longer.
It is worth mentioning that 25 years ago, Taiwan went through the same phase, and the government launched the “M.I.T” (Made in Taiwan) campaign to re-brand Taiwan-made goods in the global market place. Although M.I.T has not reached the level of success of “Made in Japan,” maybe the Chinese government should use it as a learning tool and a blueprint for a re-positioning global campaign.