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China's Broken Toys

Spanish Translation

Joe McGowan

The grinch can take a break this holiday season. Millions of toys are already being taken from kids. On August 14, Mattel, the world's largest toy company, announced a worldwide, voluntary recall of nearly 19 million toys made in China. On August 22, other manufacturers recalled more than 342,000 Chinese-made toys. When a product is recalled, its maker stops selling it and stores take it off of shelves. The manufacturer replaces the item or returns customers' money. Mattel's recall was its largest ever, and its second in two weeks.

Chinese factories produce about 80% of the world's toys. Mattel pulled 436,000 "Sarge" cars from stores in mid-August. The Chinese-made toys, which are based on a character from the animated movie Cars, were covered with lead paint. Lead is a metal that can be harmful to humans, especially young children. Then, Mattel recalled about 18 million more toys, including Polly Pocket, Barbie and Batman play sets. Small magnets on the toys pose a health risk if swallowed.

Toy-store owners worry that they will not have enough merchandise for the important holiday season. But Robert Eckert, Mattel's top boss, says that his company's concern is to "work hard to enforce the highest levels of quality and safety."

That may be difficult to do with China as a trading partner. Mattel's actions follow a wave of recent problems with Chinese products. All kinds of goods have been recalled this year, from contaminated pet foods and toothpaste to faulty automobile tires and unsafe baby bibs. The nonstop recalls have bruised China's reputation as a manufacturer of inexpensive, quality goods. Around the globe, consumers are wondering if it's safe to buy items with a "Made in China" label.

Cost Isn't Everything

Thousands of Chinese manufacturers produce goods for foreign corporations like Mattel. Inexpensive labor and low production costs draw businesses to China. Once there, many foreign companies set up safety standards for the Chinese factories they work with. But the standards are often poorly enforced. In the United States, government agencies like the Consumer Product Safety Commission (CPSC) work to insure that companies follow safety standards. China, on the other hand, does not have as rigorous a system of checks to prevent unsafe products from reaching store shelves.

Under pressure to produce goods quickly and cheaply, some Chinese manufacturers cut costs by using low-quality--even dangerous--materials. "It's not just about price," Kent Kedl, a general manager of a business in Shanghai, told TIME. "A lot of foreign companies are lulled into a sense of confidence, when they need to be really diligent."

Taking the Next Steps

The recalls have renewed demands for tougher regulations and safety standards in China. Soon after the Mattel recall, Congressional leaders said the U.S. needs an import czar, or chief, to monitor all products entering this country. Others suggested placing American inspectors inside Chinese factories, an idea China would likely reject. Early this month, the CPSC's acting chairperson will meet with Chinese leaders to discuss safety concerns.

Chinese factories stand to lose billions of dollars if orders for products are canceled. China's leaders say it is unfair to label all of its products as "unqualified." They are taking steps to improve the safety of Chinese goods. In recent weeks, a high-level government member was appointed to run a quality-control campaign. Some unsafe factories have been closed, and exports from problem manufacturers have been halted.

"The question is whether China can sustain these steps," said Gene Grabowski, who works with U.S. consumer-goods companies. Keeping standards high is a good goal for all companies, whether Chinese or American. When everyone plays by the rules, it will be much safer to go back to the toy store.

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