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The Great China Toy Conspiracy. It Ain't Bush, It's Another.

Posted by Dan on October 24, 2007 at 03:59 AM

The zhongnanhaiblog (on our blogroll for a reason) just came out with a post entitled, "Has the Bush Administration toyed with the toys?" Gist of the post is that Chinese product quality control issues have been going on for many years and so the recent media attention reeks of a conspiracy.

Zhongnanhaiblog readily admits he has no real evidence to support what he says, but he sees the "timing of all the recent hype around the Chinese product recalls as a bit suspicious:"

For years there have been recalls because of Chinese produced products. I mean, when, as a country, you're pumping out the vast majority of toys for domestic US consumption, odds are, you're going to be the main focus of recalls. But still, this year, the media seems particularly interested in this ongoing saga. So why?

He then posits that the Bush administration is behind this and is doing it to increase the pressure on China for revaluation of the Yuan:

So, with this knowledge, I posit this suggestion: Did the Bush Administration point the media in the right direction when it comes to Chinese recalls? Now, I'm not saying that - if this was the case - the Administration is still pushing the issue with journalists. There's no need. Once the media gets its teeth into an ongoing issue, it will stick with it and look for new angles on the existing issue. Some might call it lazy journalism, but it's still the way the system works. And for the Bush Administration, why not just sit back and hope that these recalls will start to fuel other stories about the safety of Chinese products (which, it has). What better way to stimulate spending on domestically-manufactured products than to put fear into the hearts of your consumers about products from overseas. You do that, then fewer and fewer bad Chinese products hit the shelves and the trade balance is reduced without having to continue beating on China over the revaluation of the Renminbi.

As I said before, there's no proof I can conjure up to add any credibility to this theory. But if you do the math on the timelines, it does make for curious speculation.

I think he is wrong.

I agree this issue has been out there for years with virtually no media play and now all of a sudden it is a hot story, but I see explanations beyond Yuan revaluation. First, the pet food poisonings brought the issue into focus and personalized it. Everyone knows the US is a pet country and you just do not mess with people's pets. Once informed of the issue, the public became interested. Second, why Bush? The loudest beating of the drums on this issue is coming from the Unions and the Democrats, which is exactly what one would expect. Bush wants free trade, the Democrats (and more and more Republicans) generally do not.

We are nearing an election year and what better way to pander to the people than to blame China for taking our jobs and now poisoning our pets and kids? What can possibly be wrong with protecting our jobs, our children, and our pets?

Americans, watch out.

Comments

Dan,

I agree with you. Nearing the 2008 election, the largely liberal American media can't get enough of these types stories. In this case, the audience is much broader since it plays to the protectionists on the Buchanan-right who see themselves still fighting a Korean-era war against the evil Red Chinese.

There's a distinct failure of anti-globalist activists to separate the benefits of a global economy from the potential loss-of-sovereignty horrors that would come from an SPP-, EU- or UN-style of government. Most Americans simply cannot make the distinction. So as the far-right anti-globalists keep popping off about being owned by China, the far-left has their own proletariat-based delusions.

The media is just delivering juicy product to a hungry market.

Dan you are right, it certainly was not Bush, who I'd argue is almost as pro-China as his father. Nancy Pelosi, who is known for being anti-China, is the culprit. :-)

Chinese, watch out. China-bashing will only get more intensive as the election is closing in. Coupled with the growing scrutiny and attention brought by hosting the Olympic Games, you will have a very tough ride.

But again, the Chinese should know this already by now.

My previous job was at a company that imported lighting and electrical products from China. There were always quality problems, some minor some major, even from our trusted suppliers. Most of my time was spent haranguing people by phone and email about why certain wires were not color-coded as required and why the labels were wrong. I can't even talk about UL testing, I still have nightmares.

I agree that a certain amount of the anti-China vitriol is politically motivated but the fact is that there are dangerous products out there purveyed by unscrupulous people. If the made-in-China Thomas the Tank Engine wasn't coated in delicious lead paint the Democrats and Republicans wouldn't have any material for sound bites. Unfortunately, the China mindset nowadays is to play the victim. It reminds me of that Caveman Lawyer SNL sketch with Phil Hartman, where he would always claim that the modern world "scared and confused" him and that he was just a simple caveman. He always won the case with the sympathy card though.

The China-as-victim game has gone on for too long. Instead of complaining about the timing, why not address the issues? I'm not trying to bash the PRC, I'm a big fan actually, but I think China is ready to take that next step into the wonderful world of personal responsibility.

Great post, by the way.

I agree, China should shed its victim mentality. But on the other hand, Americans should also realize that there is a correlation between price and quality -- and that if Thomas the Tank is only selling for US$10 at the local Walmart, quality will be compromised. (Just do the math, after Walmart takes its cut, and after the raw material, transportation etc costs are deducted, there is very little left for the Chinese supplier and hence they must cut their cost which will likely to include quality control measures.)

Ultimately it's a cost/benefit analysis for Americans. We cannot have everything -- ridiculously low prices and high quality.

Are they the same group of people who claims Bush administration is behind 911 and World Trade Center was ragged?

As a working journalist in China, I think Zhongnanhai is mistaken on many counts. The recalls of products, from pet food to toys, gave this issue a long shelf life, numerous daily "pegs" on which to hang stories. Consumers care about their pets and what they stick in their mouths. Also remember, these recalls came on the wake of news that cough syrup adulterated with an ingredient from China caused dozens of deaths in Panama and the Caribbean.

Secondly, the Zhongnanhai blog is certainly out of date in its allegations. Many of us are actually writing that product quality is improving as a result of the recalls. Here's a story I wrote from the Shanghai Toy Fair last week saying precisely that: http://www.mcclatchydc.com/world/story/20746.html

If there's a conspiracy out there, it certainly is failing miserably. China says its toy exports haven't suffered. And its toy manufacturers are actually improving quality.

Who's getting hurt here?

I agree that zhongnanhaiblog's point was weakly argue, but rather disturbed that so many commentors on this post rush to defend the Bush who lied to get the US into Iraq. You'll all be feeling the blowback of that little misadventure for years to come (so will I, which is why I'm bitter about it). Enjoy!

I don't know if this is not being cooked up by elements in the Bush adminstration. Remember that they are not a unified group. The Office of the Vice President takes a keen interest in China trade issues, especially the exchange rate. This could be just be part of the latest struggle for control of US policy.
Yes, it's true that the pet food thing was happenstance, but I think that the Vice president's office tried to take advantage of it.

Nonin Stone,

We are in complete accord. I just saw where Hillary has declared war on China's eroding our sovereignty. What the hell does that even mean?

Pfeffer,

I was going to mention Pelosi by name, but removed it because there are so many in addition to her. It's just politics.

Pfeffer,

I was going to mention Pelosi by name, but removed it because there are so many in addition to her. It's just politics.

Glen Wilkins,

It is actually my favorite issue and it is one that absolutely needs to be addressed. Addressed, yes, politicized, no. Product safety is a critical issue, but it is not just a Chinese issue though you are absolutely right to be highly critical of China's record on this score.

jms,

True too.

Tim Johnson,

I think there is a "conspiracy" out there. A conspiracy by US politicians of all stripes to want to tell us what they think we want to hear. I fully expect this and it is our job as citizens to sort through the crap. I concur with you though in believing the media is covering this becuase the people are interested in it; in other words, the media is giving us what we are requesting.

astrid,

I truly hope your views are in the extreme minority because what you are saying is that because Bush is guilty of one thing, we should find him guilty of everything. Where is the justice in that?

conycatcher,

Perhaps. I think many politicians are trying to take advantage of this.

I merely mention the most obvious and easily proven. Bush is indisputable liar and fact manipulator on many things. His administration is callous and incompetent. That so many would dispute this even now...to me that can only be evidence of head in the sand denial.

And what is wrong with mentioning Iraq? It is not one matter in isolation and it has huge consequences for the US in the next twenty years. You can't isolate the Bush White House's behavior on Iraq to their behavior on everything else.

David Li,

Good question.

Astrid,

Even assuming everything you say to be true, that still does not mean Bush is guilty of every bad thing of which he is accused, or does it?

Conspiracy or not, the story needs to be told. The bottom line is about the safety of not only Americans, but for everyone consuming "Made-in-China" products the world over...Chinese included. As an undergraduate student conducting research in China back in '96, I learned early on the hard way not to wear China made lipstick or lipgloss. Only after the effects became visible did my foreign female friends "fore-warn" me not to wear China made cosmetics. I still do not to this day. I make sure to rack up at Duty Free.

My point is, knowledge empowers us as people to make smart decisions and avoid potentially hazardous experiences. It also allows us the freedom of choice to take risks or not. Let me know the deal on Chinese made toys and I will decided whether or not my child's joys of playing with the toy outweighs the potential risk.



China is already taking great steps in the right direction, through local regulation and enforcing. I'm actually quite impressed by how things move so quickly in this direction. Naturally, the way things are here, the powers that be would work hard to solve the situation, but on the same time they simply cannot truly take the responsibility. This should not be expected either. EVERY country plays the blame game to some degree, and as such also China have the right. What sounds so hypocrite to me, is that it looks like EVERYONE knows (or at least states so) that there are quality problems for ages now, but still people buy from China. So who is to blame?

Yes China needs to address this quality problem immediately, but the much play-up in the media at the same time globally is suspiciously a conspiracy orchestrated by those who can gain from the diversion of attention. Painful growing-up lessons for China that can be turned into some good. Quality will improve and prices will go up. Before the giants find another qualified producer, of course the "Made in China" label will still hurt the eys of many.

Dan,

You're right; there is no political conspiracy. From the first lunatic post blaming the "liberal media" (believe me, the media is NOT liberal - I live in the SF Bay Area - KPFA sets the bar for liberal, dude - look it up), to others blaming Bush, the only ones that get it right are the ones that identify cost-cutting as the reason.

Many companies outsourced manufacturing to China, lured by low price. They had no clue that the country and it's history meant that it is a very different place to do business than the US and other developed nations so completely failed to manage their subcontractors properly. Clearly the entire toy industry failed to pay the required oversight costs for managing, auditing, and test so their prices would continue to be unrealistically low. Metal Thomas the Tank Engine toys hover(ed - when I was buying them for my kids a couple years ago) around $6 each; wood around $10 to $20...prices should be 30% to 50% higher to enable companies to use better suppliers and hire more people to implement better oversight programs.

We don't need US or EU governments to mandate testing; we need strong and serious laws to mandate safe products for our children and that have penalties to deter poor oversight where needed. The CEOs of Mattel and RC2 should be doing time as far as I'm concerned, but without laws banning lead in toys they're free to try and place the blame and responsibility elsewhere (like on port inspectors!).

Mike K...

I agree it is the profit driven US executive that implements cost cutting measures to drive his/her rosy outlook for investors which leads to the race to the bottom of product quality.

Additionally, it is the cowboy executives playing robber baron that lead lives insulated from the decision making process which cause these oversights, that are the source of the debacle.

But who, if not a federal team of inspectors (located inside the port system), or self-policing industry group will then enforce your laws that mandate safe products? Having a quality team in china inspecting is a short term solution, that will only be axed due to cost as soon as the executive suite changes players.

The Chinese have a long history of making things to which they are clueless as to why someone would value such a product. They are only in it to make product and money, not derive "fun or education" from playing with toys.

If something tastes bad you spit it out before swallowing it. The taste buds of the points of entry for goods from overseas needs to be re-designed from the bottom up. US consumer brands in partnership with federal inspectors need their own presence on the docks...

Stephen,

I am not saying we don't need enforcement; we do. We need a law to enforce in this case. And for a manufacturer to blame poor port inspection for the fact that his (Mattel's) toys with lead paint got in to the US (and EU) distribution channel is disingenuous, to say the least.

It would be the port inspectors' job to enforce a toxics in toys ban (not only lead; you just wait - once we get lead out of the way we'll start finding cadmium in paint on toys...). That is not mandatory testing by the manufacturers; it's port inspection - there's a difference.

But port inspection is an end-of-pipe solution that is bad for the American public, since they can only inspect a small percentage of total imports, and for the companies that sell this stuff, since depending solely on that (assuming no change in internal manufacturing controls) will result in a constant stream of embarassments, fines, and jail terms if its the only mechanism for enforcement.

The laws are necessary and so is enforcement (by PIs, NGOs, parents walking around with XRF guns they've borrowed from work, investigative reporters, etc.). But internal controls are also mandatory, and laws make them so. If your relationships with your suppliers are so bad you need to hire armies of inspectors then so be it. Otherwise find suppliers that are capable of producing safe products that meet regulatory requirements, period. Whether they're in China or not I don't care.

And if prices need to rise then so be it.

I must say that I'm very glad to see all the comments on here (even though no one seems to agree with the theory I floated :-) But that was the whole point of putting the post up in the first place, to stimulate debate. There's no question that there are numerous factors that drive any and all debate surrounding the inner workings of the Sino-US relationship. And, as I suggested at the beginning of my post, I had no credible evidence to back up the theory that I floated out there. So thanks Dan, and the rest of you, for taking me to task!

R Mitchell,

I could not have said it better.

Jonathan,

Everyone, and I'm hardly kidding.

china jo,

Conspiracy among whom? Can there be a conspiracy when it is truth that is being told?

Michael Kirschner,

I agree the Western companies have to bear some responsibility here, but I think it is pushing it to call for criminal liability against Mattell's and RC2's CEOs.

Stephen Allard,

Those are the million dollar questions.

Michael Kirschner,

I tend to agree with you that we need a lot more than just better port inspection.

Paul,

Thanks for stopping by. I have really been enjoying your blog lately. Keep up the good work.


For Immediate Release For More Information Contact
November 13, 2007 Joel Joseph (310) 922-1856

Made in the USA Foundation Launches American Toy Website
The Made in the USA Foundation has partnered with BondRewards to establish a website for consumers to buy American-made toys for Christmas. The new site is www.onlyustoys.com. It can also be accessed at www.bondrewards.com.
With more than 20 million Chinese toys taken off the shelves for safety and health problems, the Foundation believes that now is the time to promote good old American quality-made toys. The Foundation, a non-profit organization, was formed in 1989 to promote U.S.-made products in the United States and overseas.
The Foundation has partnered with BondRewards to promote the sales of Toys Made in the USA because BondRewards is America’s Reward Program. Members of BondRewards receive US Savings Bonds as their reward for shopping online. Joel D. Joseph, Chairman of the Made in the USA Foundation said, “The synergies of our missions, to help Americans save and America prosper, made our partnership an easy decision.”
Joseph said, “The website now offers more than 2,000 high-quality, safe, American-made toys. Unfortunately, most of these toys are not available at retail stores. We will add thousands of American-made toys to the site during the next 30 days.”
The Foundation is providing a certification that all of the toys on the website are actually Made in the USA. The Foundation is conducting inspections of factories so that consumers can have a high level of confidence that the toys sold on the site are genuinely made in America.

“We are thrilled by our partnership with Made In the USA Foundation where American consumers are assured that the products they purchase are certified by the Made in the USA Foundation and also receive U.S. Savings Bonds for their spending.” Chaz Berman Chairman and Chief Executive Officer.
The Made in the USA Foundation was formed in 1989. It is dedicated to promoting American-made products in the United States and overseas. The Foundation successfully pushed Congress to pass the American Automobile Labeling Act and the Country of Origin Labeling Act, that requires country of origin labeling of food products.
UCB Network, Inc, headquartered in San Francisco, California, is an innovative media and direct marketing company. UCB Network’s flagship service BondRewards® is an online rewards program for American consumers. BondRewards is an unique reward site that offers you points that are redeemed for real U.S. Savings Bonds when consumers shop at affiliated stores. Every time a shopper reaches 50 BondRewards, he or she can redeem them for a $50 Series EE U.S. Savings Bond. This is a great deal that helps the United States in two ways: promoting the sale of U.S.-made products and encouraging savings.
A percentage of every purchase of Toys Made in the USA goes as a donation to the Made in the USA Foundation to continue its work of providing valuable information to consumers and Congress.

The chinese are dilibrately using toxic substances in their products with the intent to harm our children and to affect their mental abilities. Lead kills brain cells and the Chines would nothing more than to take the long term approach to killing our nation from within by attacking our children. If it were up to me I would respond by nuking them right now. Kill them before they can kill us.

I am sorry, I am so angry about my child getting sick from lead poisoning that I went to far with my comment. I honestly feel that the chines cannot be trusted and that they know full well what it is they are doing. If you study chines history you would know that this is something that they would do deliberately. Destroy your enemies future and you conquer him without ever having to do battle. Lets face it, our children don't need any more help to loose brain cells. Again I apologize about my previous comments.

Yes I certainly believe there is a huge conspiracy going on and you have to just follow where the money is going. Americans are being lied to as always by the media...thus causing another scare tactic to no longer purchase foreign goods.

After Bush came into administration, he has caused our country to go into further debt...there were no mass weapons of destruction...it was a pretense to control the Americans and our so called "enemies" to improve his own wealth and the wealth of his friends...and now the blood of innocent people cover our hands. Isn't it always about money and power?

Our economy is slowly breaking down and the once strong American dollar continues to devalue. After 1971 the dollar was fixed not to an ounce of gold, something measurable. It was fixed only to the printing press of the Treasury and Federal Reserve. The public and private debt has increased dramatically every year and consumers are definitely not helping by consuming foreign goods instead of American products.


"China holds $340 billion in US Treasury bonds and other reserve assets. The US needs the Chinese dollar savings to finance its soaring deficits. It is caught in its own web: American jobs, hi-tech jobs as well as factory jobs, are vanishing permanently as US factories source to China, India or other cheap areas."

So, is this a conspiracy or do you really believe the American government cares about their people?


Weird. A dead pet versus money and power? Hmmm... I choose money and power.

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The Great China Toy Conspiracy. It Ain't Bush, It's Another.: