The China Food Safety issue has been a hot topic, the alleged problems can be seen on major news media almost on a daily basis.
There were more than 90 different food products recalled by the FDA made in USA and Canada for the past few months. But the product scares and recalls the US media seems fixated on are the ones from China. It is the faulty tires, toothpaste, pet food, seafood and toys with a China connection that are making all the news, with cover stories, editorials and television programs harping on how China's "substandard" manufacturing methods are putting American consumers at risk, how the factory to the world is actually one big sham, and proffering ways to keep off products with any trace of China.
The Bush Administration also formed a cabinet level panel to recommend how to guarantee import food and products safety. The move seems to say that USA and Canadian made product does not pose a threat.
There is a perception that China import cost American Jobs.
According to Cato Institute, at the most 150,000 jobs are lost in the US every year because of imports from China, compared with 15 million jobs that disappear annually in the US economy primarily as a result of technological changes and the consequent increase in productivity.
Productivity gains have actually taken a bigger toll on employment in China than the USA. A study by Alliance Capital Management LP in New York finds that while the number of manufacturing workers in the USA dropped by 11 percent from 1995 through 2002, in China it dropped by 15 percent.
And in any case, Chinese imports in the US are mostly replacing imports from other Asian countries, not American products themselves. And manufacturing is no longer the foundation of the American economy as it begins to deindustrialize as part of a global economic shift.
Therefore the American job argument is very weak at best.
Many of us who have lived through the rising of the Japan's economic power in the 80s, the Japanese bashing, the killing of Vincent Chin (mistaken as Japanese) by two layoff auto workers in 1982 resulted in no jail time. Many has worried the entire scenario might reply itself with new target toward Chinese in the USA and China.
Products from China are being held up at USA Customs for extensive period of time, according to many importers, with no apparent good reasons. We have seen news reports and through importers from China that American products are being held up at China custom. The move could hurt importers and exports from both sides of the Pacific.
In Hawaii, The Chinatown Merchants told us privately that the anti-China-Product sentiment has cost many up to 40% of lost sales. While the merchants are complaining privately, few are keen to tell the world about the bad news. In the Asian culture is all about face, not to lose face to their family, colleagues, customers and more important not to let their competitors to take advantage of it.
Chinese Premier Wen Jiabao said on Friday (July 27, 2007) that China would strengthen exchanges and cooperation with other countries to cope with the issue of food safety "in a responsible way" at a national work meeting in Beijing. The following are measures the Chinese government has taken since China's food quality was called into question both locally and globally:
1. China and the United States will hold a vice-ministerial-level talk on food security in August and the two sides will sign a memorandum of understanding on food safety by the end of this year to enable the two countries to resolve food safety issues more effectively.
2. The U.S. Health and Human Services officials will visit China at the end of July to exchange views with Chinese officials on the U.S. detention of four categories of aquatic products (catfish, basa and dace, shrimp and eel) that were alleged to contain banned substances.
3. China pledged on July 25 to provide regular and detailed information about potentially dangerous exports from China based on European complaints during the visit of Meglena Kuneva, the European commissioner for consumer protection.
4. China has established bilateral mechanisms and multi-lateral mechanisms on food safety with its trade partners including the United States, the European Union, Japan and the Republic of Korea.
The action taken by China is a positive step in the right direction. It is most helpful if the Chamber of Commerce that represent Chinese business interest throughout North America will spread the news that food products from China is safe. Hong Kong.China.Hawaii Chamber of Commerce (HKCHcc) is working with our Collaboration Partners in Hawaii, North America and Asia to get the words out.
