China Association for Quality Promotion, under the General Administration of Quality Supervision, Inspection and Quarantine, announced on Wednesday that it suspected more than 300 products in 10 categories used deceptive advertising.

Its in-depth investigations and spot checks have found that many products, including famous brands, have misled the public, Li Jingkai, an association official in charge of legal affairs, said yesterday.

According to Chinese regulations and laws, rampant comparisons and appraisals of brand name products have been forbidden since 1996, Li said.

Those who break the law will be severely punished, he added.

Jiangsu-based Bosideng Corp Ltd President Gao Dekang, on behalf of the entrepreneurs present at a recent forum, said Chinese entrepreneurs should pursue quality and seek economic efficiency when developing their brands.

"Credibility is crucial to the development of enterprises,'' Gao said.

Ever since China joined the World Trade Organization, the pressure has been on domestic companies to create brand names for their products to combat competition from home and abroad, said Jiang Yabin from the Qingdao-based Haier Group in East China's Shandong Province.

"China enjoyed big growth in its export sector last year,'' Jiang said. "But half of the exports were from solely foreign-funded companies and joint ventures.''

Chinese enterprises must create well-known global brands to develop properly, he said.

A proposal calling for a crackdown on fake brands and better protection of established brands was also passed at the forum.

(China Daily March 29, 2003)