'Made in China' complicates American feelings, trade relations
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Products produced in China have a common label when sold overseas: Made in China. Americans have varied and, most likely, complicated feelings about this phrase. If you ask an American, "Do you like the 'Made in China' label?", the answer would probably be yes, and the reason would be because it is cheap and affordable. But if you ask an American, "Do you hate the 'Made in China' label?", the answer could be yes, as well. And the reason could be because the Chinese took our jobs or Chinese products are less safe and of lower quality.
Generally speaking, American consumers are happy with goods made in China because they pay less for them than for comparable American products. Big box stores like Target and Wal-mart have "dollar items," and not surprisingly, most of them are made in China. To better cope with the current economic recession, more and more American households have reacted by shopping for cheaper goods.
But many American workers, in certain industries, are deeply bitter. They are suspicious that Chinese-made goods have caused many jobs to be exported to China, a popular explanation put forth by special interest groups and the US media.
In fact, Americans really do not love or hate the Made in China label absolutely. Some Americans may avoid buying Chinese products only because of quality concerns, but at the same time, most Americans are unwilling to pay higher prices for similar goods made in the U.S. or other countries. Moreover, many products are not made in the U.S. anymore, even if they are necessary for the US standard of living.
There are also dramatically different purchasing habits depending on the type of products. For everyday household items, American consumers are inclined to buy the lower-cost items, and most do not care much about the particular brand. But for other things, such as electronics, the buying behavior is totally different. Most Americans are still very cautious about buying Chinese TVs. Rightly or wrongly, Americans have preconceived quality-related loyalty issues when it comes to such products. When asked if they would rather buy a Japanese TV at a higher price or a Chinese TV at a lower price, most American consumers said they would prefer to buy a Japanese brand TV at a higher price.
The "Made in China" label has been facing more and more challenges in recent years as American consumers reevaluate the advantages of buying Chinese goods. Many Chinese believe that only the best products are exported to the U.S., and that products designed for export are of much better quality than those made for domestic consumption. There is a long-running saying among economists (present company included) that Americans are the luckiest consumers in the world: They pay the lowest prices but enjoy the best quality goods.
Still, China needs to improve its manufacturing capability, focus on enhancing quality and adhere to higher standards through better inspections. This is the key to maintaining China's well-deserved reputation as the "world's factory" and its manufacturing power. But it will not be easy with rising labor costs, as workers receive higher wages, better insurance, and more safety standards and welfare.
Today, the "Made in China" hallmark is no longer just a label; it is an important bilateral tool for obtaining leverage in geopolitical affairs. Consequently, the familiar "Made in China" tag will continue to affect Sino-US trade relations, and it will do so in more and more ways than ever before.
The author is a columnist with China.org.cn. For more information please visit:
http://www.china.org.cn/opinion/node_7075405.htm
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