Tuesday, April 14, 2009

Raising the image of "Made in China"

Since the rash of unfavorable publicity on poorly made products from China, some even with deadly consequences, I have been thinking about this matter. China has become such a dominant manufactuer of goods that any negative publicity hurts the image of all the products made in China. The damage can be enormous affecting not just export sales but the lingering reputation that China makes only shoddy goods.

Yet, given China's enormous population and geographical breadth, assuring product reliability and conformity to accepted standards from every manufactuer is a daunting if not impossible task. The irony is that as China become more successful as the global supplier, the task of protecting the image of products from China become ever more challenging.

In order to rectify the image of goods made in China, I have been an advocate for the Beijing Central Government to establish a website where any person or company can register and complain about quality and other problems they encounter from suppliers in China. In such a website, the complaint should identify the party and the location of the party as well as describing the nature of the dispute.

This approach can have three major benefits:

(1) By erecting such a site, China is proclaiming to the world that the government is promoting transparency in business transaction and is encouraging buyers from all over the world to help China maintain the consistent quality of products made in China.

(2) The information on the website can help QSIQ (full name: General Administration of Quality Supervision Inspection and Quarantine) identify the trouble spots and focus their surveillance and enforcement efforts in problem regions of China.

(3) Local officials are no longer motivated to abet, shelter or protect offending suppliers of sub-quality goods, since such producers can run and hide but the local officials cannot.

The immediate impact of such a website is to raise the confidence of buyers and consumers of goods made in China.

In order for such a website to realize its potential, it must be easy to use and must be tamper proof. Anyone wishing to register a complaint may not do so anonymously but must provide verifiable information about him/herself and the organization he/she is representing. The identity of the complainer must be kept confidential and available only to the people managing the website.

To encourage participation, the government may even consider offering a reward or suitable recognition as a friend of China for each complaint that leads to arrest of the offending party.