Tuesday, May 22, 2007

China U.S. Trade a Recipe for Disaster

Expect a new round of dangerous products from the Economic Red Storm. Poisonous animal food morphed into toxic toothpaste courtesy of Chinese manufacturers. So what are both sides doing about it? Not much.

Neither side of the China U.S. trade situation plans to step up efforts to ensure safe products reach shelves in North America. The Bush administration's gutting of the Food and Drug Administration is compounded by his preference for voluntary measures. How did China respond to Treasury Chief Hank Paulson's concerns? They assured us "they would fully investigate any problems uncovered." If they're only examining problems post production, the consumer is in trouble.

As Dr. W. Edwards Deming stated "You cannot inspect in quality." Neither side has any clue as how to achieve quality or as the guru called for by the end of his career, transformation of management.

But apparently Communists understand the profit motive quite well. Just as American corporate chiefs cut costs and jobs to maximize returns, the Chinese substituted toxic ingredients to cut costs and boost margins. Pet food, toothpaste, what's next? The FDA will find out when American consumers tell them. Unfortunately neither side plans to do anything other than shut the barn door after the cows get out...

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