Reuters on China product safety
August 3rd, 2007 by AdministratorTechnomic Asia’s Kent Kedl was quoted in two recent Reuters news service articles on Western reaction to safety concerns over products manufactured in China.
The first, by Kirby Chien on July 12, discusses China’s regulatory environment in the wake of recent product safety concerns.
The lack of consistent and stable regulations enforced evenly throughout the vast country opens the door for unethical executives looking to cut costs and improve margins.
“There is product substitution, poor manufacturing methods, poor storage and a myriad of other problems that can result,” said Kent Kedl, the Shanghai head of Technomic Asia. Kedl’s company is a consultancy that helps firms such as chemical maker DuPont and Sara Lee to import into and source from China. New Chinese companies pop up literally overnight, trying to take advantage of new opportunities, but often lack proper supervision.
“Last year they were planting soy beans, and this year they are doing chemical processing,” said Kedl. “They can get loans and backing quickly but don’t have the proper level of expertise and sophistication,” he said.
And the most recent Reuters article discusses Mattel’s recall of 1.5 million Chinese-made toys worldwide because their paint may contain too much lead.
The recall comes amid heightened concern worldwide about the safety of China’s exports. Many of the previous problem products have involved smaller manufacturers, but now a major company in a sensitive sector has been hit.
“Nobody wants to face that PR nightmare,” said Kent Kedl, the Shanghai head of Technomic Asia, which advises companies sourcing out of China. “But the reality is that things slip through the cracks. And the cracks are a little bit bigger here in China.”
Read the full news story from Reuters.
