The Blame China Syndrome

A spate of apparent deficiencies in imports from China have made headlines, led to considerably hand-wringing among legislators and may bring on trade restrictions. But it is not China we need to hold accountable. The real problem has little to do with the quality of Chinese manufacturers or the integrity of Chinese regulators and almost everything to do with the nature of American importers, American corporate philosophies and American consumer demands.

Dysfunctional and dangerous goods are a plague we have brought on ourselves.

In opening their trading doors to the world, China's well-educated executives have been following the well-proven policy: “Give the customer what he wants.” The trouble is while those of us picking up pet food, choosing toys for our children and buying toothpaste think of ourselves as the customer, we are not China's customer. We are the customers of the importing companies. It is their orders China is filling.

China puts satellites into orbit, maintains a respectable nuclear arsenal, feeds close to 20% of the world's population and in less than half a century has built the second largest economy in the world. Most of the computer this is being written on was made in China and the odds are good much of yours was too, as were at least parts of the networks that are bringing this to you. They are safe, reliable and meet the exacting standards required by North American regulators, even the non-governmental ones at Underwriters' Labs.

So why are there problems with toys and pet food?

We North Americans are greedy and self-centered! To the point of scrimping on the two most dependent groups in our lives - our children and pets. So we buy from Wal-Mart because the prices are lower. The prices aren't lower because Wal-Mart chooses to take a hit. They are lower because Wal-Mart leans on their suppliers. The suppliers cut corners. Surprise, surprise. Does anyone really believe they're getting the same quality as their parents did?

Mattel's 2006 annual report speaks of “price increases and supply chain savings more than offset external cost pressures”. What was taken from the supply chain to get those savings?

If liability is to be assigned, check your sales receipt and the name on the box. To find the person ultimately responsible, look no further than your bathroom mirror.