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July 16, 2007
How much can Beijing do to make our pet food safe?
James Pethokoukis asks Minxin Pei about recent problems with the quality of Chinese goods. Here is one question and answer that speaks volumes.
Pethokoukis:
The average American probably thinks of China as having an all-powerful authoritarian government. How easily can it institute changes that would improve product quality?
Pei:
China has a strong, authoritarian central government only in name. In reality, power in China is diffuse and decentralized. Beijing can issue orders, but it cannot expect its orders to be carried out by local officials. At the local level, officials with real power are often connected with manufacturers through family ties or economic connections. Producers of shoddy, fake, or outright dangerous goods are often protected by local officials whom they have bribed or given shares in their firms.
China is also so large that enforcing strict quality rules requires a much larger bureaucracy. Therefore, it is not easy for Beijing to impose changes that would improve product quality very quickly. However, crisis can spur action. Right now , Beijing feels it is under siege, so it is taking steps to address the quality issue. The real challenge is to introduce durable reforms. Otherwise, the quality problem will be back in two or three years.
Go read the rest.
Posted by William Polley at July 16, 2007 09:29 PM
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