With stricter standards on Chinese-made consumer goods exported abroad in the works, some Chinese industry associations have already taken preemp-tive steps to comply with anticipated restrictions and potential challenges.
Within the next six months, quality watchdogs from China, the United States and the European Union plan to draw up a roadmap for improving consumer product safety and to better align standards, according to a joint statement released at a trilateral summit held Tuesday in Shanghai.
The EU and the US are two largest export destinations of Chinese consumer goods. But in recent years, the "Made in China" tag has been associated abroad with a few high-profile safety problems, involving goods ranging from pet food to toys.
The latest problematic product is Chinese-made drywall, which has sparked more than 3,000 complaints in the US because the product was found to be emitting dangerous levels of sulfur.
As a result, a German-Chinese joint venture, Knauf Plasterboard Tianjin, has agreed to pay for repairs to about 300 homes.
And back in April, a New Orleans court ordered Shandong-based Taishan Gypsum to pay $2.6 million to seven Virginia families for damage to their homes caused by drywall.
"The company has hired a US law firm to deal with legal issues and will closely monitor the issue's development," Taishan Gypsum's parent company, Beijing New Building Material Group, said in its third-quarter financial report released Wednesday.
This crackdown on shoddy goods has some Chinese manufacturers concerned that stricter standards will take a heavy toll on their businesses.
"Tightened standards, if implemented improperly, are another trade barrier for Chinese exporters," said Wang Shaoqing, vice chairman of the Shenzhen Association of Arts and Crafts Industry. "Chinese manufacturers will spend more on product designs that meet the new standards, and whether these costs can be transferred to foreign buyers is unknown."
But in anticipation of new standards, some local industry associations are already working to achieve higher product standards by self-regulating.
"We created two local standards for Christmas (holiday items) earlier this year, and our orders have increased by 20 to 30 percent compared with last year," said Chen Jinlin, secretary-general of Yiwu Christmas Articles Industry Association in Zhejiang Province.
"Establishing higher standards can help us seize the initiative in negotiations with buyers, and we will develop more standards for Christmas ornaments and lights," he added.
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