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View Full Version : China's House of Cards Folding?


thefabfive
15th August 2007, 09:29 PM
Mattel recalls 19 million toys sent from China
Mattel, the world's largest toy company, Tuesday announced the biggest recall in its history.

In a double-barreled announcement, the company said it was recalling 436,000 Chinese-made die-cast toy cars depicting the character Sarge from the animated film "Cars" because they are covered with lead paint.

At the same time, the toy maker said it was recalling 18.2 million other toys because their small, powerful magnets could harm children if swallowed. The magnetized toys were also made in China, but they followed a Mattel design specification.

http://www.iht.com/articles/2007/08/15/business/15imports.php


Is the house of cards built on cheap merchandise, slave labor, and virtually no regulation starting to fold?

The end is nigh!

Rubber Duck
15th August 2007, 09:31 PM
Is the house of cards built on cheap merchandise, slave labor, and virtually no regulation starting to fold?

The end is nigh!

They were still Matels Toys. Matel design them and sold them. They were responsible for outsourcing of the subcontracts. They took everything for granted and screwed up big time. Why blame the Chinese?

thefabfive
15th August 2007, 09:39 PM
China was aware of toy trouble (http://timesofindia.indiatimes.com/China_was_aware_of_toy_trouble/articleshow/2283498.cms)
BEIJING: China knew about problems with magnets on toys as long ago as March, an industry official said on Wednesday, following a second massive recall of Chinese-made Mattel toys due to hazards from small, powerful magnets.

China toy firm boss kills self after recall (http://economictimes.indiatimes.com/China_toy_firm_boss_kills_self/articleshow/2279354.cms)
BEIJING: The head of a Chinese company that made Sesame Street and other toys that were recalled in the United States due to safety fears has committed suicide, a state-run newspaper reported on Monday.


The horror!

Rubber Duck
15th August 2007, 09:44 PM
The point is that people bought Matel because it was a trusted brand. Through their own greed they have gone to the ends of the Earth to source the cheapest shit they could foist on their own customers. If I buy a brand, I don't care where they get it from, I expect it to provide the kind of quality that I am paying for. Matel, have been recalling stuff that was made a very long time ago. Basically, they took your money and they didn't give a damn. The public apology means nothing. Would the Chinese have got public acknowledgement if everything was perfect. Would they hell as like!

So in answer to your earlier question. No, they are not suddenly going to start sourcing product for the US Mid-West to ensure that quality goes up. If anything, should they turn their back on China they would go somewhere even cheaper, perhaps Vietnam or Bangladesh.

thefabfive
15th August 2007, 09:45 PM
You're right... maybe I shouldn't make broad generalizations about a huge economy from astoundingly small bits of skewed information.

Rubber Duck
15th August 2007, 09:49 PM
Your right... maybe I shouldn't make broad generalizations about a huge economy from astoundingly small bits of skewed information.

The Chinese will have to make their own way. Like anywhere else there is good and bad. My guess is that judging by their trade figures, most people currently believe they are getting value. It is conceivable that there is something of a propaganda war going on at the moment, but ultimately it is difficult to damage businesses that have no recognisable brands.

mdw
16th August 2007, 01:15 AM
extraordinary satire - very entertaining!

burnsinternet
16th August 2007, 02:58 AM
You're right... maybe I shouldn't make broad generalizations about a huge economy from astoundingly small bits of skewed information.

We should all take that pledge.

touchring
16th August 2007, 03:47 AM
Generalizations, exaggerated or truth, doesn't matter at all, it's about time the Communist government work on QC on their products, instead of just making money irresponsibly.

They need to be taught a lesson, America is doing a big favor by doing this, and fast forwarding this change. ;)

Drewbert
16th August 2007, 05:07 AM
Of course if the Dept of Commerce hadn't been gutted by the Bush admin, the regular checks they used to do on imported products would have caught this before kids were endangered.

This is what happens when industries are allowed to "self-regulate".

Rubber Duck
16th August 2007, 05:24 AM
Of course if the Dept of Commerce hadn't been gutted by the Bush admin, the regular checks they used to do on imported products would have caught this before kids were endangered.

This is what happens when industries are allowed to "self-regulate".

Exactly! Why did Mattel's own internal QC just go walk about?

I am guessing that the Lead problem was ultimately pointed out to them and they had to do something.

touchring
16th August 2007, 05:27 AM
Of course if the Dept of Commerce hadn't been gutted by the Bush admin, the regular checks they used to do on imported products would have caught this before kids were endangered.

This is what happens when industries are allowed to "self-regulate".


In Singapore, every consignment of vegetable, every container of can foods from China is checked by the authorities.

Question :
How does AVA ensure that vegetables imported into Singapore meet pesticide safety standards?
Answer :
AVA conducts inspection programmes to ensure that imported and locally produced vegetables and fruits do not contain excessive pesticide residues.

For imported fruits and vegetables, AVA imposes a labelling system to identify supply sources. We routinely take samples of imported fruits and vegetables for laboratory testing to check on the levels of pesticide residues. Fruits and vegetables that are known to be problematic are subject to stricter checks and controls. Consignments that fail to meet AVA's stringent requirements are destroyed and AVA will follow up with a fine and suspension of the importer.

For locally produced vegetables, AVA monitors and regulates the use of pesticides in the local vegetable farms to ensure that pesticides are applied properly. Farmers have to use AVA-registered pesticides which are in line with international standards. They must also have a certified pesticide operator to handle the pesticides in the farms. Vegetables that are ready for harvest are also sampled and tested for pesticide residues. Like imported vegetables, penalties are imposed on farms that fail to meet AVA's stringent requirements.

http://www.ava.gov.sg/FoodSector/FoodSafetyEducation/Food+Facts/AllAbtFruitsAndVeg/index.htm

Rubber Duck
16th August 2007, 05:45 AM
Well, China seem to be adopting an execution policy in very serious cases of safety breaches, especially where fraud is involved.

This should definitely motivate a few people to try harder!

mulligan
16th August 2007, 06:02 AM
In Singapore, every consignment of vegetable, every container of can foods from China is checked by the authorities.
What exactly does that have to do with toys?

You think Singapore is the only place that has strict controls on imported vegetables? Ever try and take a mooncake into Australia?

touchring
16th August 2007, 06:04 AM
Well, China seem to be adopting an execution policy in very serious cases of safety breaches, especially where fraud is involved.

This should definitely motivate a few people to try harder!


Execution won't solve the problem. They need to implement QC checks, and dismiss officials that don't enforce the checks. Exporters that don't meet standards should be fined and have their licence canceled. Speaking of fraud, the ongoing securities fraud is on the scale of hundreds of billions if not trillions. :o

Rubber Duck
16th August 2007, 07:46 AM
Actually there is a very important fact or issue that has been overlooked here.

China now makes 80% of the toys made in the entire World. It is therefore little surprise that more problems arise here than from the US domestic toy manufacturing which must be virtually non-existent.

Mattel sources from 3000 factories in China. These problems have arisen at one company that runs three.

I don't doubt there are not safety issues, but I think Mattel's biggest concern is that if Chinese firms market directly to the US, then they are completely buggered. By undermining confidence in Chinese manufacturing standards, in fact they are reinforcing the need to pay ten times over the odds for a recognised US brand. I would suggest that is actually completely wrong, because as they have admitted, they have really done little or nothing to ensure dodgy stuff does not not hit the US market under their brand.

mdw
16th August 2007, 03:14 PM
You're right... maybe I shouldn't make broad generalizations about a huge economy from astoundingly small bits of skewed information.
I thought it deserved another quoting - Fab you're a zen master!

touchring
16th August 2007, 04:36 PM
What exactly does that have to do with toys?

You think Singapore is the only place that has strict controls on imported vegetables? Ever try and take a mooncake into Australia?




In Singapore, every consignment of vegetable, every container of can foods from China is checked by the authorities.

EQUALS

Everything from China has to be checked.

Rubber Duck
16th August 2007, 04:43 PM
It all boils down to the fact that China has done the work, while the US has made the profits.

The US is worried that China might want a significant slice of the action, so they are simply trying to poison the water hole.

You pay a massive premium for branding. You pay that premium just to know the goods are of the highest quality. The bottom line is you have been charged that premium, but the guarantees you have received are worthless. Do you blame the sweat shop or do you blame those that subcontracted the work to the sweat shop?

thefabfive
16th August 2007, 04:51 PM
Since I do not know the details of the incident or the contracts between the two parties, I will refrain from making wild assumptions without substantiation. My credibility may seem shaky otherwise.

Rubber Duck
16th August 2007, 04:55 PM
Since I do not know the details of the incident or the contracts between the two parties, I will refrain from making wild assumptions without substantiation. My credibility may seem shaky otherwise.

Maybe not, but what I do know is that if you had gone into a shop last month and bought a Mattel Toy, you would not have been read a disclaimer that this product has been imported unchecked from the PRC and may contain dangerous parts or toxic substances!

mulligan
16th August 2007, 05:28 PM
In Singapore, every consignment of vegetable, every container of can foods from China is checked by the authorities.

EQUALS

Everything from China has to be checked.

Just China?

touchring
16th August 2007, 05:31 PM
Just China?


No, not just China, but i think they would check food from China more vigorously.

Rubber Duck
16th August 2007, 05:36 PM
Most developed countries undertake ad hoc spot checks especially where there is cause for concern.

It is likely that the problem has been picked up in a Western Country as a consequence of such checks. If so, it will be interesting to see where it has been picked up.