Project Outsourcing

A number of Chinese companies have had to suffer product recall and this has made China notorious for product quality. The Chinese government closed down Taixing Glycerin Factory, Xuzhou Anying Biologic Technology Development Company and the Binzhou Futian Biology Technology Company, which are suspected of adding melamine or other chemicals to some of their products. More then 1.5 million Fisher-price toys had to be recalled after one of the company’s own quality checks revealed an excess of lead on the surface.

Despite claims by US watchdogs that nearly 60% of product recalls are linked to Chinese sourcing the Chinese government has made attempts to combat production of low-quality products. “The Chinese government pays great attention to addressing flaws in product quality, especially the quality of food products,” Li Changjiang, an official with the General Administration of Quality Supervision, Inspection and Quarantine said at a Beijing press conference Friday, according to the state-controlled Xinhua News Agency. The government is doing both promising sweeping regulatory changes and insisting that 99% of their products are above standard and the problem is being exaggerated by the foreign media. Another concern is that sub-contracting and a fast growing economy has made it complicated to trace the source of the problem in time. A lot of these products are exported through Japan, Hong-Kong and Korea who have outsourced the goods to Japan.

In conclusion it can be said that the Chinese government needs closer regulation of its product safety and the companies outsourcing to China need to keep closer tabs on their supply-chain and implement methods which will allow them to quickly catch the problem in the chain.

Hira Channa