American consumer attitudes toward Chinese-manufactured products and imports

¶ … 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 -- 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).

Data Analysis

In order to break down the data that will be needed for the work ahead in this class, I will need to do a thorough analysis of many more articles than I have to date. There are many business databases, and databases that offer primary and secondary sources in the fields of psychology, politics, government, globalization, international trade and other fields. All of those fields should be tapped into and the articles that pertain in any way to "Made in China" (and the responses from Western nations to that phrase and its ramifications) need to be downloaded and thoroughly analyzed for relevant passages and themes.

For example, in the data that I recover from the databases and other sources, I will need to find collaborating documents to back up the materials I plan to use. An article in the Canadian Press (2008) points out that health authorities in Washington, D.C., placed a "sweeping detention order on dozens of imported foods from China." This was an enormous, impactful slap in the face to China, and was it deserved? The analysis of that issue will not be done in this document, but suffice it to say it should be verified in terms of why the Food and Drug Administration would ban "everything from snacks and drinks to chocolates and candies" (Canadian Press). The detention order also relates to pet food and some bulk protein products.

The justification for the cautionary detention on these imported items was because food contaminated with the industrial chemical melamine "can cause kidney problems," the Canadian Press article explains. With this finding, the writer of this paper uses data analysis to investigate what other countries that receive Chinese imports have found in their food products and pet foods. Is this a global problem? Is this a problem in the U.S. only because of errors on the China side of the equation? The article came from Canada, but in quoting the FDA the article asserts that the problem of Chinese food products containing melamine is "a recurring one." Moreover, the article claims that "Unscrupulous companies in China have routinely watered down milk, then added melamine to artificially boost protein readings on quality tests" (Canadian Press).

"Made in China" now carries with it the stigma of an international scandal. In fact digging into the data through analysis a writer will be able to find out just what countries that do business with China had children or adults get sick from Chinese milk. Some 13,000 Chinese children that had been fed milk contaminated with melamine were hospitalized, the article said, and one of those children died.

Careful analysis will also be required in the final paper I will complete when it comes to fake Apple stores in China. "Made in China" indeed, this recent scandal shows the whole world that some Chinese businesses that have no scruples can do with a world-renowned technology company like Apple. An article in BBC News (Technology) points to fraud in China when "elaborate fake stores, which mimicked the look of the real thing, came to the world's attention after being exposed on a blog" (BBC). The five Apple stores that were found to be fake have been shut down, but data analysis (looking deeper into this scam) should be done because there may be more, many more, of these rip-off stores in China. The key to realizing these stores were fake is that written on the outside of the building was "Apple Store"; Apple never puts signs up saying "Apple Store" hence it was a bogus idea. The other question in the BBC article is pertinent, and should be analyzed in a business sense: where did these stores get the authentic Apple products?

Expected Findings

I expect to learn a great deal about China's interactions with countries around the world. There are databases and other sources (books, periodicals, company records and correspondence) that will be able to fulfill the need for more data and narrative into China's good and bad behaviors when it comes to their exported products. I also expect to be able to find out if China bullies other countries like India, for example, when it comes to nations that don't go along with China's less-than-perfect exports. In the Times of India (Singh, 2009) the journalist reports that India banned China's dairy products -- for the same reason the U.S. banned China's milk and dairy products, the finding that Melamine was in the milk -- after several infants died after drinking the milk. When time was up for the ban to be lifted, Indian put the ban on for six more months, which greatly angered China. Responding to India's extended ban on milk products, China bullied India by saying it (China) it would ban India's seafood produces, sesame oil and dairy products.

China said it does not want a trade war but since India's decision differs "from good cooperation between both sides, lacking scientific ground and against scientific principle," China will go tit for tat. I expect to find several other instances like there in which China plays hardball against countries that don't cooperate fully with China.