Customer perception of made in China products

¶ … China -- Not Necessarily a Good Thing?

Project Overall Aims - Objective

The United States is deeply involved with China when it comes to finances, as China is the largest foreign holder of American debt. Moreover, China is a major trade partner with the United States, and while thousands of Americans travel to China each year -- and thousands of Chinese visit the U.S. -- when you say "Made in China" it gives many Americans an unsettled feeling. That is because so many products imported from China have flaws, are unsafe, or otherwise cause controversy and concern. Further, Americans read about Hollywood films that are illegally manufactured as knock-offs (or fakes) and sold in China as the real thing, and these kinds of fraudulent activities contribute to the suspicions that Americans have about China.

The objective of this paper is first of all to research the facts relating to "Made in China" by pointing out the many instances of imports into the United States from China that have not been up to standards, have not been safe, or have contained harmful or toxic substances that would potentially make consumers in the United States ill. But just pointing out the picture of products that are flawed is not quite far enough to go. This paper looks also at the image of China that has been badly hurt (through other parts of the world, including the U.S.) by the bad products that are exported from China. "Made in China" has become a phrase that many people in the U.S. are wary of. It is true that the image of China in America is already somewhat negative due to the publicity about China's censorship policies and by China's tough stand against Tibet.

Americans read that certain Web sites and certain search engines are banned in China because the government does not want the citizens to know about how others in the world are living with democracy and freedom. Americans read that Google tried to work a deal with China to have its search engine available to Chinese computer users, but China had a hard line about Google and there was a big standoff in that situation. To Americans, Europeans, Australians and others in the world, anything a person can find in Google is available to them, whether it is political, or pornographic, or psychological. So it seems dictatorial and even fascistic for a government like China to be scrutinizing everything on the Internet and censoring those things it doesn't agree with.

Moreover, Americans and Europeans and others in Asia and elsewhere are shocked at the way Chinese military treated the protesters in Tibet. Those living in democracies do not respect Nations that allow their military to shoot and harm their minorities or dissidents. So the point of this is that China already has a poor reputation in the world due to several factors previously mentioned. And when China exports toys that have lead paint (children can get sick from lead), drywall that makes homeowners ill, cribs that are unsafe and toothpaste that has toxic substances in it, and other poor quality or contaminated products, those incidents add to the lack of respect Western nations already have of China, making China's image in the world darker than it should be.

Literature Review -- U.S. Media Coverage on China

How do the American media members report on China -- what issues are typically covered in the press, on television and the Internet with reference to China? A poll in the Pew Research Center (PRC) in January, 2011 -- taken at the time that Chinese President Hu Jintao was in the United States for a four-day visit, including a "lavish black-tie dinner at the White House -- reflects two patterns. While the economic relationship that the U.S. has with China is of enormous importance, the media tends to cover "tainted imports and disasters" (PRC).

Indeed, over the last four years, the biggest story subject that received the most coverage in the American media delved into "problems with imported products, including tainted pet food and lead paint in children's toys," Pew Research Center has found. The news coverage index that PRC uses indicates that in the last four years 21% of the media coverage of China focused on negative stories about Chinese imports; the second most frequently reported China issue was the huge earthquake that killed up to 70,000 people and injured 400,000 (14% of all stories zeroed in on the earthquake). Another issue covered in the American media about China (6% of China coverage) was the tension between the Chinese communist government and Tibet. And 12% of stories about China in the American media were about trade issues and business issues.

The only story about China over the past four years that the American media covered heavily that was not about diplomacy, or product problems, or public policies was the 2008 Beijing Summer Olympics. That having been said, there were also negative stories regarding the Beijing Olympics when protestors in Paris and in San Francisco "made their opposition to the rule of Tibet and human rights violations known as the Olympic torch traveled through those cities" during the week of April 7-13 in 2008 (Pew Research Center).

Literature Review -- The Gallup Poll

A Gallup Poll taken in 2007 shows that American consumers are "deeply suspicious of Chinese-made goods," and those attitudes were the result of a "string of recalls of potentially unsafe products made in China" (Jones, 2007, p. 1). Another result of the bad publicity China received from the faulty products imported to America is that U.S. consumers are telling pollsters that they are paying "more attention to which countries produce the products they by," and that they are going to try to avoid "Made in China" whenever it is practical to do that (Jones, p. 1).

The poll (taken of 1,001 people reflected nationally) revealed that 72% of Americans are now paying stricter attention to where products they buy were manufactured, Jones reports. This question was asked of the 1,001 respondents "prior to any explicit mention" of the product problems (related to China) that have been publicized in the media; 93% of the respondents later told the Gallup polling people they were "following very closely" the news about unsafe Chinese products (Jones, p. 1). Some 85% of respondents indicated they would try to avoid Chinese products and 64% in the survey said they would be willing to pay "up to twice as much for a product made in the United States as they would for a similar Chinese-made product" (Jones, p. 2).

To whom do Americans place the blame for faulty imports from China? Some 35% blamed U.S. safety inspectors; 31% blamed U.S. businesses; 19% blamed Chinese manufacturers; and 13% blamed Chinese safety inspectors (Jones, p. 3). It is interesting to note that Chinese officials claim that only 1% (or less) of the products they ship to foreign countries "fail to pass quality controls" and fail to "meet international quality standards" (Jones, p. 3).

Literature Review -- Baby Crib Problems

The Bassett Furniture Industries company announced a recall of baby cribs that the company had been buying as imports from China, according to an article in the Roanoke Times (Adams, 2007). The product name was The Wendy Bellissimo Collection convertible cribs and Goodbaby Child Products Co manufactured them in China. The reason for the recall of those cribs was because the crib can pose "a serious entrapment and strangulation hazard," Adams reported. The U.S. Consumer Product Safety Commission (CPSC) indicated that had been no "serious injuries" resulting from the crib at that time (the cribs had been on the market for over two years).

If no children had been hurt, why then was there a recall of 8,900 cribs? Apparently bolts can work loose on the crib at the crib's top corners, Adams explains. After the bolts work loose at the top corners, a gap results and a small child could be trapped in that gap, or even be strangled, Adams continues. A total of 85 reports had come in to the CPSC and one-13-month-old baby was reported to have a hand trapped between railing once the bolts worked loose. What apparently happens in some of the cases is the parents over-tighten the bolts when they are assembling the crib; the over-tightened bolts then strip the fasteners that the Chinese manufacturers designed to work with the cribs.

The cribs sold for about $500 in Babies R Us stores, and the Bassett Furniture Industries customer service people said that consumers that own the cribs can receive a "free repair kit" which the CPSC insists will eliminate the hazard to children (Adams, p. 1).

Literature Review -- Toys With Flaws

Alan M. Field writes in Shipping Digest that RC2 Toys was forced to recall 1.5 toys made in China (because the toys were contaminate with lead paint, which will poison children if ingested), which was "free advertising" for RC2 Toys "…of the kind they didn't need" (Field, 2008, p. 12). Six weeks after that public relations disaster for RC2 Toys, other toy company, Fisher-Price, was obliged to recall "nearly 1 million of its most popular character toys, also because of lead paint," Field continues. Not long after those embarrassing recalls, Mattel and Fisher-Price announced "three more recalls from China" (Field, 12).

When an adult item is recalled, it doesn't make as big a negative splash as when items for children are recalled, so the toy industry was truly rocked by these events. One can also factor in the American economic downturn at the time of these above-mentioned recalls; that is, when people are out of work by the millions, and many are having their homes foreclosed, to have one's hard-earned dollars spend on a product that might sicken family members is doubly impactful on the negative side of the ledger.

Field explains that the recalls have had a "far-reaching impact on the health of the U.S. toy industry" because more than 90% of toys that are sold in the United States are imported; and of those imported toy items, 85% are manufactured in China (p. 12). These toy recalls hurt China's image even more because they came on the heels of the revelation of "alleged unfair trade practices" by the giant Asian nation. Was it the design of the toys that caused the problems? Was it the lack of good testing strategies? Carter Keithley is president of the Toy Industry Association and he spoke recently to a conference in China; Keithley explained that the "toy safety standards along the global supply chain are excellent" but what is lacking is testing and inspection processes (Field, 12).

Of course Keithley is not an objective bystander in this matter, and he is going to put the best possible light on the subject. He stressed to his audience in China that the "overwhelming percentage of U.S. toys are safe and that safety issues were limited to just a few companies" (Field, 12). In fact the toys that were recalled represented just 1% of all the toys sold in the U.S. In 2007, Keithley assured his audience. That 1% however adds up to around 25 million of the total 3 billion toys sold; and in about 30% of the recalls lead pain "was the culprit," Field explains (12).

Following the widespread U.S. media coverage of the lead paint problem in toys manufactured in China, the U.S. Congress quickly got into the act. The House passed H.R. 4040 by a vote of 407-0. H.R. 4040 passed the House in December, 2007, and passed in the Senate (79-13) in March, 2008, and was signed by then President George W. Bush (Govtrack.us). The bill was called the Consumer Product Safety Improvement Act of 2008, and it basically made any children's consumer product that contains more than specified amounts of lead "a banned hazardous product under the Federal Hazardous Substances Act" (Field, 13). Also, the bill requires "independent third-party testing of children's products" albeit Field remarks that ultimately, importers have the responsibility for testing the toys they bring in from foreign manufacturers prior to selling them to families / consumers (13).

Field goes on to explain that notwithstanding the negative publicity about toys manufactured in China, the Asian nation is expanding its presence globally. The U.S. imported $22.2 billon worth of toys in 2006, Field writes; and the North American toy market remains the largest in the world, with sales (in 2006) totaling $24.1 billion (35% of the $67 billion spend throughout the world on children's toys) (Field, 13).

Literature Review -- Chinese Drywall Problems

An article in Popular Mechanics (Hadhazy, 2009) points out what can happen to a family when low-quality drywall is installed in their home -- and in this case, the drywall in question was imported from China. This is another one of those cases where the phrase "Made in China" makes a sizable number of American consumers red in the face with frustration and anger. To wit, Keith Baker began to notice "sour smells emanating from the walls" of his brand new home in Fort Meyers, Florida, in March 2008. After the bad smells, Baker also noted that the copper pipes from his hot water heater "turned black… as though someone threw soot on them" (Hadhazy, p. 1). Next, he and his wife began to struggle with "sinus problems, dizzy spells and muscle aches" -- which the Baker family along with "thousands of homeowners in Florida and elsewhere" blamed on low-quality, imported drywall.

What was in the drywall that caused these problems? U.S. Senator Bill Nelson of Florida -- who estimated that as many as 100,000 American homes used this particular brand of drywall from China -- said that the Florida Department of Health's research indicated "that the gypsum in some Chinese drywall contains strontium sulfide" (Hadhazy, p. 1). The problem with strontium sulfide is that is "releases sulfurous gases" and that homeowners' complaints (nosebleeds, respiratory ailments, black coatings that tarnish shower fixtures and corrode air conditioner coils) most likely result from the Chinese manufactured drywall.

Is the evidence conclusive that the problems homeowners are complaining about are all due to the Chinese drywall? No it is not absolutely 100% conclusive. Still, Hadhazy explains that class-action suits were filed and the Lennar Corporation (that ordered the drywall from China) announced it will "fund the only known remedy: removing the drywall, replacing damaged plumbing and wiring, and relocating homeowners until new materials are installed" (Hadhazy, pp. 1-2). This replacement and repair project has no doubt cost Lennar Corporation millions of dollars, and moreover, it has muddied the reputation of the company that bought drywall from China and caused so many physical and emotional and financial headaches for so many homeowners.

Literature Review -- Safety of Food & Medical Supplies from China

An article in Modern Healthcare (Rhea, 2007) explores several other issues that tend to give the phrase "Made in China" a suspicious tone. The author explains that some toothpaste that comes in an oral-care kit used by hospitals use "might…[be] laced with the toxin diethylene glycol, a coolant sometimes used illegally as a glycerin counterfeit" (Rhea, p. 1). When it learned that the toothpaste it was giving to patients might be toxic, the University Health Care System in Augusta Georgia, spend two days "…scrambling about the hospital to retrieve hundreds of tubes of toothpaste labeled "Made in China" (Rhea, 1). As a result of the concerns that have been raised by Americans and by the U.S. government, the officials at the Health and Human Services (HHS) department began working out memos of understanding between the U.S. And China in August, 2007. These memos spelled out "…steps the Chinese officials will take to ensure safety regulations are enforced on products exported to the U.S." (Rhea, 1).

President George W. Bush acted in July to try and come to terms with the ongoing list of faulty products imported from China; he issued an executive order that created an "import-safety working group" that was responsible for finding out where the breakdowns occur when it comes to the safety of imported drugs, food and medical devices.

The article in Modern Healthcare also mentioned the other imports from China that have been flawed or in some way were unsafe. These include seafood, toys, pet food, and as mentioned above, drywall.

Writer Richard de Melim explains in Cabinet Maker that the recall of an estimated 18 million Chinese made products (in the UK and the U.S. And elsewhere) has created a "worldwide media frenzy" because the goods in question range from children's clothing to jewelry and even to mattresses (de Melim, 2007). The writer of this column excuses China to some extent by explaining that in a country with 8,000 factories, China "… would have to be more than exemplary to not fall foul of some standards… problems are to be expected," he continued (de Melim, p. 1).

De Melim explained that another problem in this matter is that there is a lack of manufacturing brands in China, and that leads to a lack of accountability. In other words, one manufacturer, Yue Yuen, produces athletic shoes for Nike, Puma, Adidas and Timberland. And when something goes wrong with, say, a Nike shoe, like a flaw in the insole for example, American consumers don't blame Yue Yuen, they of course blame Nike. This to de Melim shows that it is the "power of the market muscle in the West that actually sells the product rather than any specific product excellence." In other words, people by Nike because of the brand name, not because of the extraordinary quality of the shoe. And if there is a problem with the Chinese manufacturer Yue Yuen, Nike better fix it or they will lose market share in the U.S.

Methodology

The methods that a researcher uses when approaching a business paper of this nature entail the use of intelligent research, good writing techniques, and fairness in the narrative. As to fairness, while this paper is not journalism -- in which both sides would be shown when there are contentious issues to be covered -- it does call for a balanced approach. That is, giving just one aspect of the issue and maintaining a narrow look at the problem -- instead of presenting a big picture of the problem or problems -- is not a good method. The researcher should (and in this case the researcher did) read widely to see what the most important information is in the literature that needs to be covered.

There are databases that feature scholarly business articles, good investigative articles on politics, government, manufacturing, globalization and more. The method used in this paper is to cover a wide swath of issues related to "Made in China" from a social, government, and business point-of-view. Also, in reviewing the scholarly and other materials that can be used in a paper like this, the writer has to find those portions of the articles that are particularly applicable to the aspect of the issues that are being reported through the narrative.

No method is ever complete unless the writer has been thorough and fair. For example, this paper is about the image of the phrase, "Made in China," and there are things that are "Made in China" that are illegally obtained from the U.S.; for example, Chinese film viewers can buy pirated / illegal DVDs of great American movies for $1.22, according to the Los Angeles Times. The reason it's hard to stop Chinese traffickers from selling pirated moves on DVD is that China's "censorship policies… on home entertainment products make it nearly impossible for consumers her to buy legal copies of American films" (LA Times). The methodology then, is to try to be very thorough.

Data Collection

The data collected for this research paper comes from a number of sources, mostly databases that are available from most university libraries. Most data and information has come from secondary sources. The reports on problems with drywall for example comes from newspapers. A researcher can go into Google (not a specific database but a widely used search engine that turns up thousands of links in a matter of 3 or 4 seconds after the researcher types in the subject) and locate hundreds of articles about China's problems with poor quality exports. The test of good writing then is to choose those sources that are legitimate secondary sources, and newspapers almost always are good sources. Typically a writer will access several newspaper articles that relate to the topic at hand; in this case, the Los Angeles Times, the Roanoke Times, and other newspapers were accessed and articles were downloaded and printed out.

Not all of the available information in every secondary source such as newspapers or magazines like Popular Mechanics or Cabinet Maker or Shipping Digest are exactly relevant to the specifics of the paper. So a good job of taking data through quotes or paraphrase is needed as part of the Data Collection. An important source of data for this paper was found through polling organizations. They use primary sources of course, because the polling companies like Gallup and Pew Research Group telephone people directly to ask them how they feel about the imports America receives from China. Reporting those primary source data ends up being a secondary source because in this case the writer did not actually do the calling, but rather depended on the integrity of established polling companies to do the calling (in the case of Gallup, they called and spoke to 1,001 American citizens, hence, that data was taken as accurate by the writer).

I very much enjoy collecting data, because it opens my eyes to many different kinds of information, and through many different styles and formats of publications. I enjoy the research because I come away with a much broader appreciation for everything that has been part of the issue I am researching. For example, while there is a flood of information about how mad Americans are at the Chinese because of the poor quality of imports, there is another poll that supported imports from China. A New York Times / CBS News poll (Weisman, et al., 2007) reflected the fact that while 35% of the 1,282 adults nationwide in the U.S. viewed Chinese imports "as more dangerous than products from other countries," a majority (55%) of the respondents said the publicity surrounding the recalls of Chinese products only created a "perception that Chinese imports are more harmful" than those from other countries. That information shows the researcher that perhaps the American consumer doesn't always trust the source of the information; indeed, Americans get their news from the media, but on the other hand they don't trust the media, and that is what was happening in this data collection.

In this same New York Times article, there is more interesting data about China and the United States' business relationship; the poll referred to in the paragraph above shows that the public (45%) believes that even though China's imports have had huge problems China should have "the same trade benefits other friendly nations receive" (Weisman, p. 2). Also in the poll 30% of U.S. consumers that participated in the poll believe that Chinese products "were good" and 36% said the quality of goods made in China "was only fair" while 20% said it was "poor" (Weisman, p. 2).