Follow Up on Tainted Toothpaste from China

In my first post on this issue, it was not yet confirmed that China was the source but now it is.  See the CBC article.  The interesting part is, the local China press and how they are playing it, is classic Chinese media. 

China Daily, a state run paper has this to say “It is an open secret here that our manufacturers usually employ higher standards when it comes to exports.”  One thing to keep in mind, this is rather typical, on the one hand they do condemn the really bad practices of the watchdogs for basically not doing their job, but they do this us against them and them being the west.  This is rather typical, in
China when a foreign company gets too popular the state run media outlets run bad stories on them, so using the west to be the bad guy is a really popular tactic. Basically it is a way to keep the Chinese consumers from trusting western companies and products when a local one is readily available.  It’s another form of government intervention on the behalf of local companies.

 

In this case, it is actually a really bad idea to use this tactic again.  It has the potential for the guy on the factor floor who decides which pallet goes where, to send the really bad stuff overseas on a more frequent bases.  Then more and more outbreaks happen and it only ends up coming back to hurt China.  Of course if they actually opened their markets like a modern economy they wouldn’t have this problem.

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Filed under Business, China, Consumerism, Globalization

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