Global Business Perspectives

Over the last few weeks China has made almost 800 arrests as part of a nationwide crackdown on the sale and production of tainted foods, agricultural products and drugs.

China has been labeled as the bad guy in the media when it comes to all the issues of lead in toys and goods and tainted foods.  China sees the seriousness of getting this under control so as to continue producing goods to export abroad.  In many instances though it has not been China’s fault.  Toys R Us did come out and apologize to China on how they forgot to request the same requirements that the American manufacturers are required to follow as far as content of their products. 

Clearly there is some responsibility on both sides…the American Manufacturers and their Chinese operations.  Working together to get this process worked out is the best solution.  China is serious…they know that if they continue to get bad press manufacturers will not look to China for partnerships.  However, the American companies need to realize the importance of quality and contents in these products.  What are the ramifications for them?  Lawsuits, loss of sales, and ultimately having to close their doors due to bad brand recognition. 

As the world becomes more flat and more business is taken abroad the standards that we have created need to be upheld and not worked around to get the price down.  The labor over in China and India is cheaper…however, the process shouldn’t be short changed while doing business internationally.