Tuesday, August 28, 2007

Cheap manufactured goods can add up to a big cost

Cadillac News:

“The first issue is that they don’t have the regulatory environment that we do,” said Bruce Schafer, vice president of manufacturing at Rexair in Cadillac. “Entrepreneurs have much more discretion until they’re caught but the penalties are severe.”

Schafer, who is familiar with manufacturing in China, said contract manufacturers are enormously competitive. That leads many to cut corners and “do things that aren’t normal,” Schafer said."

Thursday, August 23, 2007

China to launch new label on food exports

Channelnewsasia.com:

"Food exports that have passed inspections will carry the label 'CIQ', which stands for China Inspection and Quarantine, the China Daily reported, citing a regulation from the nation's quality watchdog."

Now I know what to watch out for, so I can NOT purchase it.

Don't you wish Chinese-made products, or American-made with Chinese materials, were better marked? Call the company and tell them so.

More Chinese lead paint: Common Steel Problems

ABC News: Latest China Scare: Common Steel:

"Adley said that the hazardous steel would cost an estimated hundreds of thousands of dollars to clean up. If untreated, it could pose a slew of safety hazards to construction workers, the environment and the general population, he said."

Wednesday, August 22, 2007

The Gross Side of Chinese Food

ABC News: China Factory Recycled Dirty Chopsticks:

"China, on track to overtake the United States this year as the world's second-largest exporter, lacks the manpower to enforce food and drug safety regulations at home or for export. Imports are generally carefully scrutinized.

"A lack of business ethics and a spiritual vacuum after China embraced economic reforms in the late 1970s have been blamed for unscrupulous business practices and corruption."

What if...

I'm not a conspiracy theorist, but what if...

Any smart enemy looks for the weaknesses of its foes to exploit. And if those exploits can be self-administered, more's the better.

In America, the weaknesses are economic: greed and cheapness. So if the Chinese were smart and looking to make it easier for global dominance over the Big Dog of America, why not simply weaken us through our economy, as opposed to fight us outright?

If the Chinese hold stead over the manufacture of all or most goods sold here, there are a couple of things they could do. First, after we are completely dependent on them (as we almost are now), they could simply start to withhold those goods. But that would be a little too forthright for them. Remember, they are the "inscrutable" ones.

A more insidious idea (and more to Chinese thinking, if you know anything about them) is to poison the next generation. History has shown time and again that China is patient if nothing else. So what if - and I admit this is a big "if" - China were to feed to our populace a steady stream of bad goods, such as those containing lead, that turn our next generation into idiots? This has the added bonus of being imminently less expensive for China to do, rather than poison us outright. But on the other hand, maybe they're also waging a bacterial war against us with all the bad food products. Perhaps the pet food debacle was simply a test run?

Lord knows, they know their exports won't be inspected when they arrive here, and that American will happily buy them from Wal-Mart because they are "cheap."

A Chinese saying came to my attention yesterday: "If the the price is cheap, the product is no good." Their way of saying you get want you pay for.

On the other hand, maybe they're just cheaper and dumber than we.

I know you are, but what am I?

China warns on U.S. soy as Chinese goods under scrutiny | Reuters:

"BEIJING (Reuters) - China, the world's top soy importer, has accused the United States of exporting substandard soybeans even as its own exports come under growing scrutiny abroad over safety concerns.

'Recently, supervision bodies have found numerous quality problems in soybeans imported from the United States,' the General Administration of Quality Supervision, Inspection and Quarantine said on its Web site (www.aqsiq.gov.cn) on Wednesday.

Harmful weeds and contaminated dirt had been found among the beans, which could threaten China's agricultural and forestry production and ecological safety, the quality watchdog said."

Tit for tat, as the Chinese scramble to recover their global image.

Tuesday, August 21, 2007

Here we go again

ABC12.com: Wal-Mart pulls two Chinese-made pet treats:

"Philadelphia television station WPVI reported last week that a woman claimed her two-year-old Chihuahua died after eating Bestro Chicken Jerky Strips.

The station reported that an autopsy found the dog died of an infection caused by toxic bacteria."

Sunday, August 19, 2007

djournal.com

djournal.com:
"But guess what? We can put a little blame on ourselves for getting into this tragic situation in the first place. In our zeal for low prices, we really haven't cared all that much where our stuff is made. We might have given lip service to the idea of paying more for things 'made in America,' but when it comes to walking the walk, we've either slowed to a crawl or turned the other way.

Wal-Mart, the world's largest retailer, sells a billion dollars worth of good per day. Ever wonder how much of that is made in China? American consumers - and I include myself - are more often than not looking for the lowest prices. Wal-Mart and others are going to meet that demand if they want to stay in business.

This doesn't let the Chinese off the hook at all, if that's what you're thinking. Many companies - with a blind eye from the government - have been polluting the air, water and land with abandon as the country grows at double-digit rates."

Saturday, August 18, 2007

The Electric Rickshaw

At $30,000 and 80-mph, an electric car for the common man - Aug. 13, 2007:

"If all goes according to plan, by 2009 you could be sticking it to Big Oil by driving an all electric, Chinese-made sedan for little more than the cost of a Camry.

"Both the low cost and the high range can be attributed to China, where low labor costs keep the price down and state-sponsored research into battery technology yielded what Rubin said was an advanced lithium ion power pack produced by Lishen Battery."

Would you plunk down 30-large on a Chinese car with unproven technology? I'd think a rickshaw would be a better play. And look better. And try recalling this one!

Another thing - why isn't the US government funding battery research like the Chinese? No wonder we're running out of juice, so to speak.

However, if this came from GM... hear that, Detroit?

Friday, August 17, 2007

The 800-pound Gorilla for the 21st Century

In 1945, The Allies won World War II, due in large part to the production power and capacity of American Industry.

Here it is, 2007, and if we were faced with such a challenge today, would we fare as well?

My guess is, No. Nearly everything of necessity, including food, is imported, and most of that comes from China. Nearly all electronics are made there, items that would be necessary to win another major conflagration.

In industrial terms, the Chinese have become the 21st Century 800-pound gorilla. What they make may not be all that great, but they can make one hell of a lot of it. Looking back at WWII, America could make good stuff, and a hell of a lot of it as well.

The Allies won the tank war against the Germans for many reasons, the most notable being that we outproduced German battle tank manufacture something like 10-to-1. To be sure, all the German battle tanks - Panzer, Tiger, etc. - were better than ours, as our Sherman tanks had deadly design flaws (they were unaffectionately referred to as "Zippos"). But even if you're in the best tank, it's mighty hard to win if you have to fight 5 or 10 other tanks simultaneously.

The Chinese military, in their precursor WWII dust-up against Japan, were asked about their infantry casualty losses; figures of 10- and 12-to 1 were being thrown around. The Chinese were ill-equipped and poorly trained compared to the highly motivated Japanese. However, a Chinese general answered the question with, "Yes, we lose 10 men to their 1. But soon, no more Japanese."

This is their thinking - massive quantities can overwhelm quality every time. And since it worked for both of us at times in the past - the US with tanks, ships, planes, etc. and the Chinese with soldiers, why not again?

In the battle for the global economy, these principles are the same. China will make huge quantities of poor quality goods, but eventually nudge others out with aggressive pricing. America the Cheap will support this by buying on the low end, and eventually kill off our own capacity for industry almost entirely. And this will create a huge security problem for us, because America will be at the economic mercy of a Communist country who has never shown any love for the US. And our inability to support our own need to defend ourselves with hard goods poses a diplomatic, political and ultimately military problem of the first order.

Many people talk about the security problems associated with illegal immigration into the US. I agree that needs addressing, but it seems to me that the death of American industry is a much more pressing security issue.

Who knows, maybe we can hire the Latino illegals to work in our new factories. Or build some in Mexico. We should before the Chinese do.

Thursday, August 16, 2007

Made in China: tainted food, fake drugs and dodgy paint | Special reports | Guardian Unlimited

Made in China: tainted food, fake drugs and dodgy paint | Special reports | Guardian Unlimited:

"Shi Ying, 50, a businesswoman, said she was so concerned about food safety that she found it difficult to shop. 'I dare not eat farmed fish or meat because most are fed with growth pills or pumped with bad additives. I worry about vegetables in case they are tainted with pesticide. I even think twice about the water I drink because it might contain heavy metals.'

Although Ms Shi lives in Shenzhen, one of China's most-advanced cities, she has started to grow her own vegetables, eat less meat and drink water only from respected bottled brands or the family well. When she does have to shop, she puts safety above patriotism.

'I think foreign food is less risky. Even though they are not as fresh, I trust products from the US, Europe and Japan because those countries protect their environments. Sometimes when I see foreigners blithely eating raw lettuce in Chinese restaurants, I worry for them.'"

Chinese Factory Bulldozed; More Fish Farms Contaminated

Chinese Factory Bulldozed; More Fish Farms Contaminated

China's Food and Drugs Are Dangerous

China's Food and Drugs Are Dangerous:

"U.S. officials are said to be concerned about 'China's standards,' and are pushing for more written codes and regulatory inspections. This would all be risible were America's health not at stake. The truth is that China has no standards worthy of the name. What it does have is a pervasive culture of corruption that makes it possible for virtually any offical, up to and including the head of China's FDA, to be bribed....

"China, as anyone who has lived there knows, has virtually no safety controls on food and drugs. At the same time, it is in the midst of a no-holds-barred drive to increase its exports, and is heavily subsidizing its manufacturers to ship container loads of cheap goods of all kinds to the U.S. and other overseas markets. As a result, over the past few years, China has stealthily become the second-largest supplier of foreign toothpaste — and many other questionable food and drug products — to the U.S. market."

Digital Chosunilbo (English Edition) : Daily News in English About Korea

New meaning for "Dog Food"

"Meanwhile Chinese dogs intended for food purposes are being imported as pets. A KFDA official said that there's no way to restrict the entry of such dogs that will obviously end up as dog stew. According to the National Veterinary Research and Quarantine Service, an airline passenger can bring in up to four animals a month as long as the person can show proof that the animals have been vaccinated."

Digital Chosunilbo (English Edition) : Daily News in English About Korea

"It has been discovered that many Korean restaurants specializing in beef-rib soup or beef-kneebone soup use canned food from China. Some of these foods have been found to contain more than 10,000 times the permissible level of E. coli. Not long ago a TV show disgusted its audience by showing the filthy working conditions of a Chinese food factory. There have been several controversial incidents in the past of insect eggs found in kimchi from China."

Wednesday, August 15, 2007

Shoppers offered few safeguards against 'Wild West' imports - CNN.com

Shoppers offered few safeguards against 'Wild West' imports - CNN.com

"China is the Wild West right now because their regulatory system lacks the strong food and drug and cosmetic standards that were developed in the last 100 years," said Sally Greenberg, senior product safety counsel with the U.S. Consumers Union, the publisher of Consumer Reports magazine.

"Anything that does not meet our standards should not be allowed to be imported."

Well, Duh. Do you hear that, Wal-Mart shoppers? Can I refill that glass of anti-freeze, for you? For more information, since our schools stink and you probably have never heard of this, see The Meat Inspection Act of 1906. Teddy Roosevelt was our greatest President.

China's Chery to open auto factory in Iran, building ties - The China Post

Is China still a viable trading partner, given the internationally-troublesome behavior of Iran?

Bothersome is that China will favor Iran because of these trade deals, at a time when China will vote (in the UN, as it is now a voting member of the Security Council) on whether to sanction Iran for its nuclear admissions.

Conflict of interest?

FACTBOX: Recent Made in China safety scares and scandals | Reuters

(Reuters) - Mattel Inc., the world's largest toy company, recalled millions of Chinese-made products on Tuesday due to hazards from small, powerful magnets and lead paint, and warned it may recall more after testing thousands of toys.

Here is an overview of safety scares over China-made products in recent months.

PET FOOD:

-- At least 16 cats and dogs died, and more than 100 pet food brands recalled products in North America in March, after Chinese suppliers were discovered to have used the toxic chemical melamine in pet food wheat gluten and rice protein. China cancelled the export licenses of two firms linked to the products in July.

TOOTHPASTE, COUGH SYRUP:

-- Two brands of Chinese toothpaste were banned in the Dominican Republic in May because of fears that they contained the lethal chemical diethylene glycol, which was held responsible for mass poisoning deaths in Panama in May 2006. At least 100 people in Panama were thought to have died after consuming toxic, mislabeled drugs in cough syrups from China.

TYRES:

-- The U.S. National Highway Traffic Safety Administration insisted on the recall of as many as 450,000 tires made by China's second-largest tire maker, Hangzhou Zhongce Rubber Co. Ltd, in late June. It reported that the tires, used on sport-utility vehicles, vans and trucks, could fail at highway speeds because of an insufficient or missing gum strip that prevents belt separation. The company rebuffed the accusations.

TOYS:

-- The world's largest toymaker, Mattel, recalled more than 18 million made-in-China toys in mid-August because of hazards from small, powerful magnets that can cause injury if swallowed, just two weeks after it recalled 1.5 million toys due to fears about lead paint.

Source: Reuters

China Becoming An Issue In '08 Race, Country's Increasing Influence Has Attracted U.S. Presidential Candidates' Attention - CBS News

China Becoming An Issue In '08 Race, Country's Increasing Influence Has Attracted U.S. Presidential Candidates' Attention - CBS News

JOKE of the day

Parents, Toy Companies Stress After Recall, Frantic Search For Tainted Products Begins After Fisher-Price Recalls Nearly 1 Million Chinese-Made Toys - CBS News

"China has always conducted international trade in the spirit of being responsible to its trade partners and itself," China's Commerce Minister Bo Xilai said in a statement published Thursday on the ministry's Web site. "Ninety-nine percent of China's exports are good and safe."

What they didn't say: The other 1% we're sure to develop further for Wal-Mart.