Two apologies are better than one
With the double mea culpa by Mattel this week, there were two very interesting comments made regarding the reality in China. A great report on the two speeches can be found here.First, a word about the involvement and reach of the Chinese government in the activities of individual factories and buyers. From the Chicago Trib article liked above: "You're dependent on the good will of the government," Shenkar said. "They can do a lot to make your life difficult."This doesn't mean that China is the police state that so many in the West mistakenly think it to be. Indeed, much of the time China is more similar to the American wild west where the law is made by those on site (and with the guns). But the government does have a long reach and can still deliver a punch when it’s in it’s own best interest.There is NOTICEABLY more involvement by government regulators this month than there has been in the past--and that is a direct result of both the problems and the government doing something about it.Second, as I've stated before, the responsibility is on the foreign company, not the Chinese or American government or even the Chinese supplier to confirm quality standards. Again from the article: “Many observers, however, agree with the Chinese government that Mattel deserves most of the blame for the mess it has created in China. Few experts would let Chinese officials off the hook for failing to regulate their industries effectively, but many say that for a large, multinational corporation like Mattel, the Chinese manufacturing environment presents a case of buyer beware.”Regardless of who is at fault, and there is blame enough to go around, my experience over that last month with Chinese factories is positive—they are scared they will lose money and they are indeed seeing more government inspections. My experience with US clients is the same--they are requesting testing documentation like never before.We can only hope that this fear leads to increased responsibility from all parties and that the hightened standards continue.