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Friday, August 21, 2009

China and Your Baby's Safety
Two related headlines today warrant attention. China continues to jeopardize the safety and welfare not only of Chinese children, but American babies also.

The Consumer Product Safety Commission (www.cpsc.gov) just announced that two more American infants have died in bassinets made in China and imported into this country for sale by a firm called Simplicity. The bassinets were manufactured improperly, leaving a gap between metal components. Four infants have now died from suffocation. The CPSC has recalled 1 million of these cribs and bassinets that were sold in this country by retailers ranging from WalMart and JC Penney to Amazon.com. Parents paid between $100 and $300 for these death traps, which undoubtedlly earned lots of profit for the manufacturers and importers, considering the low cast of manufacturing in China. I would love to see the profitability of these goods -- was it a 100% mark-up? 200%? 1,000%?

Even the Disney Company made out. They licensed their character, Winnie-the-Pooh, to the maunfacturers for marketing these cribs and bassinets with the likeness of Pooh under the product brand name Graco. I wonder how Disney stockholders feel about knowing their dividends are paid for through shoddy merchandise like this? And how does Jeff Bezos, the CEO of Amazon, feel about his companry's role in distributing these death traps?

The CPSC is telling purchasers to junk the cribs and bassinets. No one is compensating the parents, at present, for the money they spent on these faulty bassinettes. Somewhere between $100 million and $300 million has changed hands -- and no one seems responsible. This is tragic, because some parents who can't afford to junk the dangerous bassinettes without getting money to buy a replacement will be tempted to keep using them. Maybe Bezos can use some of his fortune from founding Amazon to voluntarily compensate consumers for turning in the dangerous cribs?

That is how the China trade works. Respected corporations like Disney profit off it, while dangerous goods are sold in this country. And when something goes wrong, no one seems responsible. Try sueing the Chinese manufacturrers and see how far you get.

The next news story, from today's Wall Street Journal, is literally sickening. Some 1,300 Chinese babies who live near a manganese smelting plant in China have severe lead poisoning. The refinery, which was located within 500 yards of a kindergarten and schools, began operation before receiving approval from local environmental agencies. Children got sicker and sicker from the emissions until finally the government stepped in. They're now being treated for lead poisoning, but some may suffer permanent brain damage.

How are these stories related?

The reason corporations shift manufacturing to China is because China has no effective worker safety regulations, environmental regulations, or social safety net for workers. This enables manufacturers to undercut the prices charged for similar products if made in a developed country or a developing country with adequate safeguards. By undercutting the safeguards, the profit margin is far higher.

In short, manufacturers like Simplicity can dodge the regulations and legislation it has taken decades to craft here in the US to protect workers and consumers. But under World Trade Organization rules, the goods can be imported into the US for sale. That manganese plant that was poisoning Chinese children was also producing metals used for manufacturing of goods then sold here in America and Europe. 

If you want to keep your children safe, don't buy any products made in China.

Oh, and there is also good news. After GM's plan to cut 22,000 jobs in the US and start building 53,000 cars a year in China, using taxpayer bailout funds, was exposed the corporation had to back down. So to all of you who helped put pressure on GM, congratulations! If we are focused and organized we can make a difference.

If you read this post, tell Disney and Amazon and Walmart what you think about their profiting by selling defective goods from China.               
2:08 pm mdt 


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