China Syndrome —Tom Polishuk
What’s up with China? It’s been in the news a lot this year, and believe it or not, it wants to be. Next year, Beijing will host the 2008 Summer Olympic Games, which will put Beijing and China on the world stage.
The problem for Chinese officials is that the majority of the news surrounding the country is negative in nature. Some of the more visible problems include:
• In March, a number of companies recalled pet food products that used Chinese wheat gluten tainted with the chemical melamine. These products were associated with a large number of illnesses and deaths of dogs and cats.
• In June, the FDA put out a warning that toothpaste made in China was contaminated with diethylene glycol, a chemical used in antifreeze.
• About 1.5 million Thomas & Friends™ toys manufactured in China were recalled by the U.S. Consumer Product Safety Commission because surface paints contained lead, which is toxic if ingested by young children.
• Also in June, the FDA initiated import controls on five types of farm-raised fish from China. It took action after a sampling of products from October 2006 through May 2007 was found to be contaminated with antimicrobial agents not approved for use in the U.S.
It is apparent that China has a long way to go to get its regulatory systems up to speed to protect itself from serious damage on the world economic stage. Yet, there is no doubt that China is serious; it executed the former head of its State Food and Drug Administration for taking bribes—a clear message to others in positions of regulatory authority that things will change.
China represents both a threat and an opportunity to North American manufacturers. Its impact on the world economy is huge and it’s just getting started. The printing sector doesn’t get the same visibility as some of the sectors mentioned above, but the learning curve will be similar. “Made in China” today has a similar connotation that “Made in Japan” had in the 1950s and early 1960s. But look what “Made in Japan” means today.
So, enjoy the Olympics next year. It will be a spectacular show. Just make sure you know what you’re eating.
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