Wednesday, September 05, 2007

Yet Another Recall of Chinese-made Toys

In what has become an all-too-common occurrence, Mattel has recalled another 844,000 toys that were made in China. The culprit? Our old friend "lead paint."


This is just another in the long litany of dangerous products foisted upon the American public by Chinese producers more concerned with making money than doing their job the right way. And it begs the question: Why are we doing business there?


American companies talk about the low cost of producing their goods in China. But does that include all the bribes they have to make? The cost of factories being appropriated by the government? A constantly fluid legal system that can incur extra costs at a moment's notice? The cost of recalling millions of toys? The truth is that, for all the business American companies do in China, they see more profit from Belgium.


David Frum, in an editorial today on NPR, made the point that American companies should look at Central Europe as a place to do business. It makes sense; they have a lower cost of living than we do, but have legal systems and standards in place that would prevent the problems US businesses have in China. Yes, the cost of production would rise. But the bribes, recalls and loss of production facilities would disappear and offset most of that cost. I would gladly pay 10% more on a toy if it was made in Poland or the Czech Republic or Hungary.


So, US businesses can make products in a Communist dictatorship where the rule of law changes constantly, bribery is a way of life and quality control is non-existent. Or they can make products in a democratic EU nation where the rule of law is solid and they won't have to worry about lead paint on toys, poisonous toothpaste or killer dog food. Is it really that hard of a choice?

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