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A monumental blacklist

You can never be too street-smart in China, even for a native like me, because there are tricks and catches everywhere in the booming economy. You can easily find counterfeits of not only the Western brand names, but also virtually everything, such as Chinese brand beer, shampoo and even milk. Can't believe it about the milk knockoff? Check out this Chinese-language news report.

My American coworkers asked why unethical business practices are so rampant and what counterfeiters thrive on. My answer was a tip told by a Chinese friend: "It's OK to burn your customers and not expect them to come back, because if you burn every Chinese person [of the 1.3 billion] once, you'll make a fortune already."

That's sort of true. But more fundamentally, it's because China doesn't have a credit monitoring system for individuals or record keeping agency for foul businesses. No Better Business Bureaus. Consumers are in the dark. Therefore, even if the bad businesses, mostly very small in scale, get exposed by the press, the owners often disappear overnight and start a new shop the next day.

But, all this could be changing, gradually. Thanks to the wave of recalls of Chinese-made products in the West, the Chinese government, worried about the export-led gross domestic product, started right away pushing for mechanisms that track product information. An unprecedented "Product Quality Credit Scores" database was launched January 15, 2008, by China's Administration of Quality Supervision, Inspection and Quarantine. "Focus on product quality and credit, establish good faith," it says on the Web site. Anyone can use the online system to search the records for a company name or product name as well as browse relevant laws, standards and announcements. The system has six channels, 17 sub-databases, and 430,000 records. It also keeps track of all recalls of made-in-China products by the U.S. Consumer Product Safety Commission.

Although not comprehensive yet, the database looks to me like a good starting point. In the "bad records"(straight translation) section, I did a search for plastic product and found 11 records out of the total pool of 831.

Considering maybe one of the English-language readers of this blog entry is sourcing from China, I think it might help to translate these 11 records, generated based on testings in 2007, for your reference. Here they are, with manufacturers' names, product names, and specific defects.


1. Anshan City Qianning District Ningyuan Township Xinbao Village PS Board Factory, polystyrene foam for thermal insulation uses, surface density.
2. Baoding Windmill Balloon Electric Co Ltd. Huaxin Branch, plastic film/bag for packaging food seasonings, residue of benzene-base solvent.
3. Beijing Meilan Power Switch Factory, circuit breaker with plastic casing, breaking capacity.
4. Foshan Fozhou Electrical Switch Co. Ltd., circuit breaker with plastic casing, breaking capacity.
5. Fujian KaiDa Printing Co. Ltd., multilayer plastic film, residue of benzene-base solvent.
6. Jiashan Ren He Insulation Material Co. Ltd., polystyrene foam for thermal insulation uses, combustibility.
7. Jiang Yi Electrical Group Co. Ltd., circuit breaker with plastic casing, breaking capacity.
8. Shenyang Dongling District PengXin PS Board Factory, polystyrene foam for thermal insulation uses, combustibility.
9. Wenzhou Southern Flexible Packaging Co. Ltd., multiplayer plastic film for food packaging, residue of benzene-base solvent.
10. Xiong County Huayue Color Printing Co. Ltd., multiplayer plastic film for food packaging, residue of benzene-base solvent.
11. Zhejiang Taihua Electrical Co. Ltd., circuit breaker with plastic casing, releasing and breaking capacity.

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COMMENTS (2)
Bharath Srinivasan:

I would not like to attribute everything about the quality or the ethics (?) to the Chinese alone. It is also the way they have been treated by the buyers especially from the developed world. Chinese entrepreuners do want to produce world class products provided they get commensurate price. Manufacturing infrastructure has been top class in what I have seen here (my be because of the freely available investment money with very small collateral). To feed that behemoth investment they are hungry for orders and are invariably being exploited by buyers. We sell plastic raw material into China and many of them produce world class quality products which are used by everyone. Strengths of Chinese have been in the quality of the production infrastructure & the productivity of the work force. Not in design, R&D, Enterprise Management nor in systems. They need guidance in these areas and above all a fair price to sustain the business. If there is a willing buyer (read as partner) from whereever they are, the experience would be diferent. Rarely can one see both the public infrastructure and production resources (labor, machine & land) so robust. It is irrelevant now, how China has been able to manage these two in tandem over the years. Onus is on the world community which is doing lip service to resource utilization to use it properly.

Robert Richard:

I have horror stories a mile long about doing busienss in China. Seems many vendors less than fair, and once transaction done, there is no incentive to fix any quality problems. Quidanance? Or is it a "quick buck" mentality.

In that the legal system does not work for dispute resolution, then public information is the key. I will publish a website soon to www.chinablacklist.com and already have a blog at http://chinablacklist.blogspot.com.

It is very unfortunate that steps like these are necessary.

Robert

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