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Chinese Manufacturing and Imports

By Jonathan M. Cohen, Stephen A. Weisbrod, and Kami E. Quinn

All companies must live with the risks and uncertainties inherent in their businesses. Doing business with Chinese manufacturers, however, recently has proven to be more risky than some companies had anticipated.

In 2007, recalls and other problems related to Chinese-manufactured products affected companies in a wide array of businesses. Perhaps the most widely reported recalls were of pet food products allegedly tainted with melamine, and of lead-tainted toys. These well-publicized recalls were joined in 2007 by recalls of dozens of other products, including recalls of approximately 300,000 oscillating fans found to have bad wiring that created a fire hazard, approximately 240,000 battery packs for toy vehicles after reports of the batteries melting or catching fire, and 450,000 tires after reports that the treads on light-truck radials may have manufacturing defects.

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