Chris Blattman

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Are Chinese products born to be bad?

The Economist explains how Chinese industrialization is taking firms down, not up, the quality ladder.

Most of Mr Midler’s work is coping with what he calls “quality fade” as the Chinese factories transform what were, in fact, profitless contracts into lucrative relationships. The production cycle he sees is the opposite of the theoretical model of continuous improvement. After resolving teething problems and making products that match specifications, innovation inside the factory turns to cutting costs, often in ways that range from unsavoury to dangerous. Packaging is cheapened, chemical formulations altered, sanitary standards curtailed, and on and on, in a series of continual product debasements.

In a further effort to create a margin, clients from countries with strong intellectual-property protection and innovative products are given favourable pricing on manufacturing, but only because the factory can then directly sell knock-offs to buyers in other countries where patents and trademarks are ignored. It is, Mr Midler says, a kind of factory arbitrage.

3 Responses

  1. What about Chinese drywall that is in millions of homes built from 2004-2008? This cheap, unsafe Chinese crap is making the home unlivable, unsafe, corroding pipes and ruining air conditioners, TV’s ,etc?? Buy as little Chinese junk as possible. I try to limit what I buy to “throway” items I don’t expect to last. I have turned to paying more for USA and Japanese made products as well as even vintage items that are in good working order. I am also a musician and won’t allow a “Chinese guitar” in my house. Those things are more than likely laced with lead paint like their toys have been. So let’s see, he have had the Chinese kill our pets (remember the pet food fiasco?), ruin our houses and try to kill our kids with lead. Yeah, no big deal on the Chinese product thin. It ain’t as bad as it seems! That’s a whole lotta crap if you believe that you bozo’s! Buy American, Buy Japanese, or buy vintage!!!

  2. I am seriously doubt about the conclusion, that Chinese industrialization is taking firms down, not up, the quality ladder. The survivors of the enormous competition are those companies who achieve both the quality management and cost control. The retailers and cunsumers are not uninformed idiots.

  3. I am seriously doubt about the conclusion, that Chinese industrialization is taking firms down, not up, the quality ladder. The survivors of the enormous competition are those companies who achieve both the quality management and cost control. The retailers and cunsumers are not uninformed idiots.

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