June 29, 2007
Chinese Import Woes Grow
Commentary by George Anderson
Is it possible that America may finally be learning the lesson that you really do “get what you pay for”? Based on an ongoing series of problems with cheap goods imported from China, it isn’t hard to see how some could answer that question with a very strong “Yes.”
The continuing incidence of safety issues being discovered with the imports would be almost laughable had it not been for the very real price paid in health terms by consumers and family pets.
Tainted ingredients in toothpaste and pet food, lead paint on children’s toys, unsafe car and truck tires and now concerns about harmful residues in seafood imported from China raise serious questions about that nation’s ability to be the “trusted” trading partner that U.S. companies and consumers count on.
In the most recent case, the U.S. Food and Drug Administration (USDA) has said it will no longer allow imports of “farm-raised catfish, basa, shrimp, dace (related to carp), and eel” from China until it can be proven the foods are safe for human consumption.
The agency is not calling for a recall of Chinese farm-raised seafood already in the country. The FDA said there have been no reports of people becoming ill after consuming Chinese seafood. The agency’s concern and the reason for the ban is that long-term exposure to some of the contaminants in the seafood could result in health problems.
According to a FDA press release: “The contaminants were the antimicrobials nitrofuran, malachite green, gentian violet, and fluoroquinolone. Nitrofuran, malachite green, and gentian violet have been shown to be carcinogenic with long-term exposure in lab animals. The use of fluoroquinolones in food animals may increase antibiotic resistance to this critically important class of antibiotics.”
Discussion Questions: Are American consumers in the process of losing trust in goods imported from China? What impact does all the negative news about imports from China have on how manufacturers and retailers view suppliers from that nation? Is it time to look elsewhere to source goods?
According to a blog on the Consumer Reports’ website, “The number of Chinese-made products that are being recalled in the U.S. has doubled in the last five years, helping to drive the total number of recalls in this country to an annual record of 467 last year. Chinese-made products account for 60 percent of all consumer-product recalls, and 100 percent of all 24 kinds of toys recalled so far this year. Even China’s own government auditing agency found that 20 percent of the toys made and sold in China had safety hazards.”
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Chinese toys are 100% of the recalls in that category because very few toys are made anywhere else. Yes, there are safety issues with Chinese foods, health and beauty aids, and other consumer goods. But there are safety issues with foods, health and beauty aids, and consumer goods made in the USA. Considering the huge volume of Chinese-sourced items, the number of safety issues doesn’t seem usually high. Almost all American autos get recalled for some problem or other, American spinach had e-coli contamination, Tylenol got recalled, etc. Is China doing a worse job than the USA?
I’m just wondering – have consumers stopped buying Chinese ingredients in supermarkets and/or stopped eating in Chinese restaurants? Or are the concerns more for Chinese-manufactured “Western” goods and non-food items?
Even if consumers are losing confidence in “made in China,” what choices do they have? If they vote with their proverbial wallets, there will be little or nothing to buy, either to eat, wear or play with. The American (and British) governments have long encouraged Chinese imports and cheap, cheap, cheap. Of course we should beware. But we are now in a position where there is no choice in all those stores that are filling shelves with vast quantities of things they claim are intended to give us choice.
Anyway, if we stop importing from China, millions of people will lose their livelihoods and will be unable to purchase the things that western retailers are trying to sell them.
But I must not be negative, especially as Friday has rolled around again. My constructive suggestion of the day is…get real. Accept that quality comes at a cost and swallow it. Be prepared to raise prices and, oh dear, possibly reduce profits at least temporarily until everyone comes around and realises that high standards are worth it. Stop equating value with cheap and start equating it with things being worth what you pay for them. As it is, the cheap and sometimes dangerous things in our stores are, indeed, only worth what we pay for them.
There should be no doubt that this is a serious situation, given the vast amounts of product across categories imported from this area, and one that, unless checked, most likely will get worse as more goods are demanded. A solution would be to slow the flow of imports and install more concrete and complete safety checks on goods before they are shipped. But this would result in slowdowns of delivery and possibly diminish a firm’s competitive edge.
The situation begs these importing firms to do a bit more soul searching: Are they only thinking short term and looking at sales figures? Shouldn’t CSR be entering their minds? Are they analyzing the possible long term effects on the company?
According to the AMA’s code of ethics, “marketers must do no harm, foster trust in the marketing system and must embrace, communicate and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system.” Isn’t a marketing goal to protect consumer rights while offering consumers the assortment demanded?
And where are the country of origin labels when we need them? Based on what everybody is saying, maybe the labels should say “Made in China unless otherwise stated.” Some people may have thought it wasn’t so bad when it was just our pets’ health that was at risk to save a few bucks and many people don’t have pets. Then it was our children’s health at stake but, again, not everyone has children. Now, not everyone eats seafood, but sooner or later these quality problems will reach everyone.
Saving money only makes sense when the basic quality and safety are there. China needs to learn that from consumers’ refusal to buy their products since it is obvious that our government can’t protect us.
It is really not healthy for a nation such as ours to rely so heavily on another single country for so much of its sustenance, clothing and materials for daily living, particularly when that other country’s ideas of safety are so “fluid”. Additionally, the historical realities of the political and diplomatic dangers of our dependence on foreign oil from only a few far away countries might have taught us something, but apparently has not.
It is virtually impossible for our agencies to inspect and test all the items coming in from China for safety. And even if it were possible (through huge budget increases to fund building of additional labs, computer tracking systems, and hiring of agents), such extraordinary efforts to protect American consumers would need to be understood as a massive US government subsidy to the Chinese producers and exporters and to the US importers of Chinese goods. For those who decry subsidies for American farmers, US auto makers and steel companies, etc, this is something to think about.
The problems with Chinese goods identified thus far are just the tip of the iceberg. American consumers are very aware of these problems. Smart companies will start to locate and develop additional, more reliable, foreign labor markets and also invest in new fledgling (or old struggling) American producers. As Great-Grandma wisely used to say, “Don’t put all your eggs in one basket.”
I agree with Liatt. I have seen increasing information on the new state of manufacturing in the US and this should be a wake up call for entrepreneurs looking for their next adventure.
Consumerism has (unfortunately) been relegated to those “who can sell the cheapest product,” regardless of its quality or sustainability. That of course leads to those “who can manufacture the cheapest product.”
If Americans were more willing to pay for quality products, perhaps manufacturing in the US really would resurface at a great enough rate to make an impact. The outcome could be a stronger job force in the US and certainly the peace of mind knowing that products are being produced with some set standards.
The time has come the Walrus said to talk of many things: China produced vs. USA made; quality and safety vs. low prices and easy accessibility. So that “speak” shall now intensify.
The real question is, “Will a crisis in consumer confidence result in a change in consumer behavior?”
Our government seems to be sending a bit of a mixed message to consumers. On the one hand, some Chinese products may be bad for you (at least in terms of long-term exposure). On the other hand, it’s O.K. to use up the current supply of potential carcinogens. Could it be that (a) the products aren’t really dangerous or (b) a recall would only reinforce the magnitude of the problem and showcase the frailty of the system?
I suspect both positions will have their champions and the truth lies somewhere between them. The point is if these threats are real then the products should be pulled. But…if manufacturers and retailers continue to hammer consumers with an onslaught of messaging that says price is the ultimate arbiter of buying behavior, those products will be back.
You can’t have your cake and eat it too. Maybe everybody will have to start thinking about marketing quality and safety. What a concept!
It may take an autopsy showing products or ingredients from China as the direct cause of death to really impact consumer confidence, but I fear that’s not too far away. The USDA and FDA should be demanding extra resources to address this situation, but it appears that higher powers in the administration are preventing that. Given a lack of government response, retailers need to step up to the plate and test products coming in from China. Those companies taking extra care now will be around to compete in the future. Those that don’t are headed for a world of class action suits.
You should have added the choice:
Too much confidence, and too little information!
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Chinese toys are 100% of the recalls in that category because very few toys are made anywhere else. Yes, there are safety issues with Chinese foods, health and beauty aids, and other consumer goods. But there are safety issues with foods, health and beauty aids, and consumer goods made in the USA. Considering the huge volume of Chinese-sourced items, the number of safety issues doesn’t seem usually high. Almost all American autos get recalled for some problem or other, American spinach had e-coli contamination, Tylenol got recalled, etc. Is China doing a worse job than the USA?
I’m just wondering – have consumers stopped buying Chinese ingredients in supermarkets and/or stopped eating in Chinese restaurants? Or are the concerns more for Chinese-manufactured “Western” goods and non-food items?
Even if consumers are losing confidence in “made in China,” what choices do they have? If they vote with their proverbial wallets, there will be little or nothing to buy, either to eat, wear or play with. The American (and British) governments have long encouraged Chinese imports and cheap, cheap, cheap. Of course we should beware. But we are now in a position where there is no choice in all those stores that are filling shelves with vast quantities of things they claim are intended to give us choice.
Anyway, if we stop importing from China, millions of people will lose their livelihoods and will be unable to purchase the things that western retailers are trying to sell them.
But I must not be negative, especially as Friday has rolled around again. My constructive suggestion of the day is…get real. Accept that quality comes at a cost and swallow it. Be prepared to raise prices and, oh dear, possibly reduce profits at least temporarily until everyone comes around and realises that high standards are worth it. Stop equating value with cheap and start equating it with things being worth what you pay for them. As it is, the cheap and sometimes dangerous things in our stores are, indeed, only worth what we pay for them.
There should be no doubt that this is a serious situation, given the vast amounts of product across categories imported from this area, and one that, unless checked, most likely will get worse as more goods are demanded. A solution would be to slow the flow of imports and install more concrete and complete safety checks on goods before they are shipped. But this would result in slowdowns of delivery and possibly diminish a firm’s competitive edge.
The situation begs these importing firms to do a bit more soul searching: Are they only thinking short term and looking at sales figures? Shouldn’t CSR be entering their minds? Are they analyzing the possible long term effects on the company?
According to the AMA’s code of ethics, “marketers must do no harm, foster trust in the marketing system and must embrace, communicate and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system.” Isn’t a marketing goal to protect consumer rights while offering consumers the assortment demanded?
And where are the country of origin labels when we need them? Based on what everybody is saying, maybe the labels should say “Made in China unless otherwise stated.” Some people may have thought it wasn’t so bad when it was just our pets’ health that was at risk to save a few bucks and many people don’t have pets. Then it was our children’s health at stake but, again, not everyone has children. Now, not everyone eats seafood, but sooner or later these quality problems will reach everyone.
Saving money only makes sense when the basic quality and safety are there. China needs to learn that from consumers’ refusal to buy their products since it is obvious that our government can’t protect us.
It is really not healthy for a nation such as ours to rely so heavily on another single country for so much of its sustenance, clothing and materials for daily living, particularly when that other country’s ideas of safety are so “fluid”. Additionally, the historical realities of the political and diplomatic dangers of our dependence on foreign oil from only a few far away countries might have taught us something, but apparently has not.
It is virtually impossible for our agencies to inspect and test all the items coming in from China for safety. And even if it were possible (through huge budget increases to fund building of additional labs, computer tracking systems, and hiring of agents), such extraordinary efforts to protect American consumers would need to be understood as a massive US government subsidy to the Chinese producers and exporters and to the US importers of Chinese goods. For those who decry subsidies for American farmers, US auto makers and steel companies, etc, this is something to think about.
The problems with Chinese goods identified thus far are just the tip of the iceberg. American consumers are very aware of these problems. Smart companies will start to locate and develop additional, more reliable, foreign labor markets and also invest in new fledgling (or old struggling) American producers. As Great-Grandma wisely used to say, “Don’t put all your eggs in one basket.”
I agree with Liatt. I have seen increasing information on the new state of manufacturing in the US and this should be a wake up call for entrepreneurs looking for their next adventure.
Consumerism has (unfortunately) been relegated to those “who can sell the cheapest product,” regardless of its quality or sustainability. That of course leads to those “who can manufacture the cheapest product.”
If Americans were more willing to pay for quality products, perhaps manufacturing in the US really would resurface at a great enough rate to make an impact. The outcome could be a stronger job force in the US and certainly the peace of mind knowing that products are being produced with some set standards.
The time has come the Walrus said to talk of many things: China produced vs. USA made; quality and safety vs. low prices and easy accessibility. So that “speak” shall now intensify.
The real question is, “Will a crisis in consumer confidence result in a change in consumer behavior?”
Our government seems to be sending a bit of a mixed message to consumers. On the one hand, some Chinese products may be bad for you (at least in terms of long-term exposure). On the other hand, it’s O.K. to use up the current supply of potential carcinogens. Could it be that (a) the products aren’t really dangerous or (b) a recall would only reinforce the magnitude of the problem and showcase the frailty of the system?
I suspect both positions will have their champions and the truth lies somewhere between them. The point is if these threats are real then the products should be pulled. But…if manufacturers and retailers continue to hammer consumers with an onslaught of messaging that says price is the ultimate arbiter of buying behavior, those products will be back.
You can’t have your cake and eat it too. Maybe everybody will have to start thinking about marketing quality and safety. What a concept!
It may take an autopsy showing products or ingredients from China as the direct cause of death to really impact consumer confidence, but I fear that’s not too far away. The USDA and FDA should be demanding extra resources to address this situation, but it appears that higher powers in the administration are preventing that. Given a lack of government response, retailers need to step up to the plate and test products coming in from China. Those companies taking extra care now will be around to compete in the future. Those that don’t are headed for a world of class action suits.
You should have added the choice:
Too much confidence, and too little information!