Trade With China

This past spring China had run into problems regarding regulations of prescription drug and pet food manufacturing. The reasons for the problems were corruption and the punishment for the head of China's FDA type regulation agency was executed. One can also remember this past summer when there was a massive recall by Mattel. The reason for the recall was lead paint in the toys which is hazardous if consumed, particularly by children. The person linked to the lead paint whom Mattel had outsourced the work, Zhang Shuhong, killed himself the morning that Mattel announced the recall. The New York Times announced Tuesday that China had signed a pact to prohibit the use of lead paint in toys. With all this in mind, one can see that China takes swift action bureaucratically to end problems involving global business. However, the August sixteenth article in the Economist, "China's Toxic Toymaker," touched on the notion that it is not the regulation of the products manufactured but the people and businesses who are doing the manufacturing that need to be regulated. In other words, inspections of manufacturing facilities is what people like Charles Schumer, a New York senator, are calling for. China may ban the use of chemicals and metals such as lead, however, does anyone really know whether or not a plant is using the banned substance unless there is an inspection of the facility.