Made in China? Recall Scare
Is Beijing's Economic Growth the Sole Objective of the Government
Aug 29, 2007
The very phrase “Chinese Globalization” is itself an oxymoron. Internal and external labor necessities, as well as consumer’s social desires, are considered unnecessary obstacles to continued growth. This diverging concept of business, labor and social ethics is heading for a cultural clash.
China
is the world’s third largest economy with a GDP of $10.7 trillion. In the first seven months of 2007, China's exports to the U.S. topped $127.65 billion according to Vice Minister of Commerce Gao Hucheng. “U.S. consumers saved more than 600 billion U.S. dollars by buying products made by China in the last ten years.” China's top ten trading partners accounted for $1.176 trillion (2006) and a real GDP growth of 11.5% in the first half of 2007. The United States is the single largest national export market for China.
The USA
is the world’s largest economy with a GDP of $13.1 trillion and a real GDP growth of 3.2%. According to the CIA World Fact book it had, in 2006, an $845 billion annual trade deficit. Only 5.3% of her exports go to China compared to 23% for China to the USA. She has an unemployment rate of 4.8% (4.2% for China) and an annual inflation rate of 2.7% (1.5% for China.) Currently 14.2% of its citizens are below the poverty line compared to 9.6% for China. In the first half of 2007, China surpassed Canada as the single largest importer to America.
Labor
China has labor issues that bring international concerns in its bid for globalization to the forefront.
- Force Labor – from the Congressional testimony of Mr.Harry Wu on June 22, 2005 “…the Laogai system (re-education through labor) remains a critical factor in the Communist Party’s ability to maintain political control….In recent years, Chinese authorities have sent thousands of Falun Gong practitioners to the Laogai, where [they face] forced labor….Petitioners…to Beijing…to air their grievances…have been imprisoned in the Laogai. These petitioners have usually done nothing illegal…..” The laogai camps maintain the slogan “Reform first, production second.”
- Child Labor has been discussed in the article Child Labor and the Global Economy
- USA Labor has 14.3 million unemployed laborers. The economics of this number has been discussed and the social impact on the unemployed worker has also been discussed. As China grows this issue becomes larger for the American employee.
Consumer
Many articles have been written on the Chinese recall problem. 19 million hazardous toys from 142 different brands and 3 million items of dangerous or flammable children's clothing have found their way to the American consumer. Jewelry, Christmas ornaments, strollers and baby bibs all sold with perilous materials. 150 million pounds of poisonous fish, toxic toothpaste and 204 different brands of fatal pet food, blanketed American store-shelves. A CBS news report said: “China on Thursday defended a global recall of millions of its toys, saying that new international safety standards - not poor quality - were at the root of the issue.”
Clash
Communism is a secretive institution where the ends justify the means; however, for the West, the means must uphold certain standards. The Chinese standard is economic growth for the sake of economic growth; while the West desire economic growth within social boundaries. "The transparency at the back end of [Chinese] operations is hazy," said professor Eric Johnson, "Each layer becomes harder to manage and control."
The hidden dangers of these diverging philosophies are coming to light. “Chinese officials have been quick to say that the vast majority of China's goods meet quality standards despite concerns over the safety of its food, drugs, toys, tires, clothing and toothpaste exports.” The West is beginning to ask: is China out of control? They are to disregard the negative and believe everything else is alright.
Related Articles:
Child Labor and the Global Economy
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