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Is It Time to Stop Doing Business with China?

The Transgressions Are Massive—and Increasing

June 2007 By Denny Hatch
27
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In the News

China’s Watchdogs Nip ‘Pirates’
“Pirates of the Caribbean” has run afoul of China’s censors, leaving half the role of the pirate lord Sao Feng, played by Chow Yun-Fat, on the cutting-room floor, Agence France-Presse reported. Chinese state news media said that censors slashed his role in “Pirates of the Caribbean: At World’s End” to 10 minutes from 20. The official news agency Xinhua said the deletions were made because the role “vilifies and humiliates the Chinese.” Xinhua did not specify criticisms, but said that a film magazine’s description of Sao Feng—bald and scarred, with long nails and a beard—was “in line with Hollywood’s old tradition of demonizing the Chinese.” Although Zhang Pimin, a film official, said the cuts would not spoil the film, fans on sina.com, a popular Web site, disagreed, saying the plot was now difficult to follow. “It is such a marvelous movie, but it has been changed beyond recognition,” one person wrote. “It really shocked me.”
Lawrence Van Gelder, The New York Times, April 16, 2007
ROTFL
I almost fell off the chair when I saw Lawrence Van Gelder’s little squib (reprinted in full nearby) in The New York Times, reporting that the Chinese have edited “Pirates of the Caribbean” because one of the characters “vilifies and humiliates the Chinese.”

Imagine! The premier pirates of American films and other intellectual property not only have pirated yet another blockbuster, but also have edited out a Chinese character because it was “in line with Hollywood’s old tradition of demonizing the Chinese.”

Is it time to rethink doing business with China? I am not talking human rights and animal abuses such as:

• Gendercide—the aborting of female fetuses and abandoning of baby girls—sometimes still alive—on garbage heaps, which resulted in a 1997 estimate by the World Health Organization that “more than 50 million women were estimated to be ‘missing’ in China because of the institutionalized killing and neglect of girls due to Beijing’s population control program that limits parents to one child”;

• The condoning of all forms of prisoner torture, with the exception of “kuxing,” which creates lasting scars and disability;

• The routine jailing of writers and journalists whose reporting the government disagrees with;

• The destruction of millions of sharks, skates and rays every year for “finning”—cutting off the fins for shark fin soup and discarding the rest of the body—not only causing the animal to bleed to death or drown because it cannot swim without fins, but also threatening the very survival of species that many in Southeast Asia depend upon for protein.

I am talking about greedy buccaneer Chinese businesses and groups that plunder the world’s intellectual property, flout public safety in its myriad exports and threaten your very health and life—and those of your family, your children and your pets. It’s a given that the term “Chinese business ethics” is an oxymoron. Let me count a few of the ways.

Chinese Theft of Intellectual Property
China is notorious for stealing the designs and manufacturing hundreds of patented and copyright products and selling them all over the world, including in this country. Among them: Callaway Big Bertha golf clubs, Ikea furniture, Chivas Regal and Johnnie Walker Scotch whiskey, Italian and French wine, luggage, designer clothes, Honda motorcycles, Sony PlayStation games, Cisco Systems router interface cards, even Mitsubishi elevators! Target stores here have been accused of selling bogus Coach bags and two weeks ago, Wal-Mart settled with Fendi for selling counterfeit handbags for up to $525 each.

Takeaway Points to Consider:

• Products from China can be cause for concern.
• If you outsource manufacturing to a Chinese company, expect your product to show up all over the world under different names and far cheaper than you can sell it.
• If you do not outsource it to China, it may take a week or two longer to show up all over the world.
• Pre-emptive advertising is a powerful and little-used technique.

Web Sites Related to Today's Edition:

U.S. Food and Drug Administration—Recalls, Withdrawals and Alerts
http://www.fda.gov/opacom/7alerts.html

U.S. Consumer Product Safety Commission—Recall Notices and Safety News
http://www.kidsource.com/cpsc/recall.html

U.S. Department of Agriculture
http://www.usda.gov/wps/portal/usdahome

Stealth Marketing Strategy of “Preemptive Advertising”
http://tinyurl.com/2vnsz4

“Marketing Wizard” Jay Abraham
http://www.abraham.com

All About Toy Safety and Recalls
http://www.slate.com/id/2168765/

Thomas & Friends Toy Recall
http://tinyurl.com/2hwtpy
 
27

COMMENTS

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Comment *
Most Recent Comments:
Joel A. - Posted on June 24, 2007
The world COULD have demanded China clean up its human rights violations, leave occupied Tibet, and stop its thievery...in exchange for being allowed to host the Olympics. But the world was hypocritical and cowardly.
D. David - Posted on June 24, 2007
China is disgusting, and its hard to avoid Chinese made goods. One abuse Denny does not mention is the enormous use of prisoner slave labor, who are forced to work under brutal conditions with inadequate food and medical care. Even after a prison term ends, the unfortunates are kept in virtual slavery, forced to remain in the prison georgraphical area under brutal conditions. Wouldn't the world be better off to try to quarantine China rather than rush to deal with it?
Denny Hatch - Posted on June 23, 2007
I urge every reader to check out doswonk's comment below and then go to the URL at the end for a simply wonderful--and horrific--story of theft in intellectual property by Lionel Trains, written by John Grossmann in the February 2005 Inc. magazine. The key paragraph: 'The irony of trade-secret theft,' says R. Mark Halligan, a lawyer with Welsh & Katz in Chicago and a professor in trade-secret law at the John Marshall School of Law, 'is that your entire company can be stolen over the weekend, and you come in on Monday morning and everything's still there. Somebody simply downloads your entire hard drive.' Don't miss this story. It will change the way you think about business.
Linda - Posted on June 23, 2007
It may take time to shop for non-Chinese goods, but it is not impossible. It is even fun. For instance, for the vast amount of household goods, we buy from antique stores...specifically, things "mid-century" modern. I have found that I can find most fod I need at "farmers markets"...Check out resale shops, and auctions for good old stuff, non-Chinese.
I pay full price for new media, use the library, and covet old classic books, and live performances. The very hardest part of shopping is verification...I welcome a law requiring proof of source.
I cook, so I don't give a damn about Kraft's problems making cheap, fake food. I know where to get my cheese from a farmer who makes it...you can too. The stomach only holds so much food...it is not that dificult to choose good stuff...eat more locally grown veggies.
Daniel Leavey - Posted on June 23, 2007
Let's look at the bright side of cheap Chinese quality. if a war were to break out between, say, the U.S.A. and China, all you would need to do is wait 30 days and watch the enemy's forces come to a grinding halt when their equipment falls apart in the field. I call it the Wal-Mart syndrome.
doswonk - Posted on June 23, 2007
"Free trade" made sense 150 years ago, when the U.S. was the new, up-and-coming industrial nation, with plenty of natural resources, cheap labor, and new industrial infrastructure. Now we're the old, established economy, like the British were way back then; we have nothing to gain from a trading policy that kills our indigenous industry. Essentially, it's a phony bill of goods, part of the great Selling Out of America by Big Business. Of course, even if we could suddenly close our markets to Chinese products (you don't think Big Business is gonna let that happen, do you?), we would immediately experience crippling shortages of staple goods that we no longer make here. Sure, I hear the Free Traitors, I mean Traders, vigorously rebutting: "Unfettered trade China has made it possible for Americans to buy larger quantities of cheap stuff than ever before!!" Response: yes, some things are a little less expensive--and a lot less well made--when we produced them ourselves, or got them from Japan, S. Korea, Maylasia, Taiwan, etc. But overall the vast cost savings China manufacturing has not made its way to the American consumer.....who needs to scrimp and save every penny he gets, since his new job in the Service Economy doesn't pay nearly as well as his old manufacturing job. And is off-shoring their manufacturing to China by American companies really all that cost-effective. Read this story and decide (skim past some of the background info if you're short on time): http://www.inc.com/magazine/20050201/mth_Printer_Friendly.html
Jerry Gould - Posted on June 22, 2007
Denny,
Frequently mentioned as justification for encouraging capitalism in China ? and America does that by being its largest customer - is that this will feed the hunger for Western lifestyle and goods among Chinese consumers (which is happening ? see reports of incredibly clogged streets in Peking and elsewhere as ownership of automobiles increases exponentially) and with it the hunger for Western-style personal freedoms. A ?soft? revolution will occur in the end, and the Chinese gov?t will slowly become more liberalized. Nice theory, and there is evidence that it is proving accurate to a degree, but a collapse of communism in China looks to this observer very far off.

In fact, the balance of American interest tips away from being China?s largest customer if, as you note, we are put significantly at risk by buying Chinese goods.

Reduce our dependence on Chinese products by curbing our consumer appetites, yes, but as part of a larger goal: becoming a self-sufficient national economy. Just think of one benefit: what a difference it would make in our briar-patch situation in the Middle East if we did not have to depend on foreign oil. Will our own economy be dampened, lose some of its vibrancy, and will prices increase here if we decrease global trade significantly? Probably so, but these are costs we may need to pay. The global economy may be doing us more harm than good.
Pramod Mennen - Posted on June 22, 2007
Dear Denny,

Your ranting genuinely amuse me.I am an Indian living in Dubai and selling a Chinese product(Racks for Warehouses).I used to sell a UK manufactured product 10 years ago.Recently while valuing our old stock I found a funny discovery-UK racks 3metre high and in the light duty category are the same price as 6metre medium duty racks from China today -considering the steel price increase and currencly valies.Now who was looting whom?When the white Britisher did it ,it was ethical?Thw cheap Chinese products make a lot of businesses viable in a place like Dubai.Ca the Americans rein in their consumption pattern?I earn equivalent of $67200/- a year ,but I still drive a toyota yaris 1.3 litr engine hatchback car.Can an average American with my salary do that?Learn to rein in your consumption and mindless consumerism.China will topple.When there are less buyers who look for the details on the pack and inside the goods they buy ,Chinese mass manufacturing will collapse.Basicall ,you have to rein in one things-YOUR OWN GREED!!!!
Do not worry -the American consumerism has come to India as well.India is a disaster waiting to happen.

Thanks

Dr.Pramod Mennen
Paul Roberts - Posted on June 22, 2007
There's a basic tension between realpolitik and idealism in a democratic, free market society.

We made a calculation, back in the 70's that it made sense to bring China into the world community using dollars as the bait. So they bit.

We ignored The Cultural Revolution and Tianemen Square and everything we know all too well about their systemic brutality when it comes to basic human rights.

What was first a political gambit by the brilliant duo of Nixon and Kissinger became a kind of crack cocaine for capitalists once this massive new market opened up.

And so here we are.

No one's gonna put this genie back in the bottle. It's just like the Sopranos...just bidness.

Our business leaders will factor in pirating costs just like they factor in shoplifting costs in the supermarket. It's just bidness.

The 20th Century truly was the American Century, because we kept our eyes on the prize - our core values - more than our selfish interests.

The 21st Century is shaping up to be something quite different because our business and political leaders have a sort of moral amnesia.

The other day, at a forum in Washington, Chris Matthews asked Hillary Clinton if she would have a problem if Scooter Libby was pardoned. The usually facile senator flushed a bit, smiled weakly...and declined to answer the question.

Precisely so.
Warren Williford - Posted on June 22, 2007
Thank you for all your columns/newletters/bulletins. Re China: perfectly on target.
Phil Neff - Posted on June 22, 2007
It is another black eye for our politicians and greedy business mogols who pushed to give China "MOST FAVORED NATION" trading status knowing full well China is the most ruthless trading "Partner"??? on this planet. It is time indeed to terminate all trade with China and stop destroying our country for the gain of so few Billionaires.
Is it time for a new American Revolution?
David Culbertson - Posted on June 21, 2007
All true, Denny - and we're putting our entire nation at peril if we continue to embrace China as a primary trading partner (although the trader is really moving only one way). The reasons for not doing business with any Chinese seem endless - not only ethical and moral, but also from the point of long-term survival as GM is learning. I believe that Toyota declined to set-up Chinese factories precisely to avoid the problem GM is now facing. And did you see the WSJ article the other day about factory slaves in China? simply awful stuff!

Read this comment on China from 1896 reprinted in the latest issue of the Atlantic:

"The industrial competition of China would be incomparably more dangerous to Western civilization than that of any other nation ? They are adepts at combination, excellent financiers, shrewd and daring speculators. Though not yet rivals of Europeans in ? application of modern science to manufacture, they have given proof of ability to master that science ?

Here, however, there come up some doubts ? Will not the Chinaman of the year 2000 resemble in all things the familiar Chinaman of to-day? ?

But modern China is not to be judged by her ancient literature, but by her present life. Men who know China also know that Chinese conservatism does not extend to those activities which belong to trade, to industry, to commerce or speculation. It is a conservatism in beliefs, ethics, and customs, and has nothing to do with business."
Alison Taylor - Posted on June 21, 2007
Thanks, Denny! I wish more people would promote this information and I hope more people stop buying products from China. PBS had a wonderful program on their environmental practices - it made my skin crawl. They are poisoning their own people, so we can't hope for better treatment. I hope your logo idea takes off - it would help me buy with peace of mind.
meryl steinberg - Posted on June 21, 2007
Denny, ah the outrage. We are dealing with a question of degree not kind are we not? Just how inferior is our torture to that inferior to that of the Chinese? How inferior our Big Pharm/FDA corruption to that of the Chinese? What of the circumscribed reporting of important news here in the U.S--and attempts to lock up journalists? China is our big nasty shadow. Let's take a look at our own house, clean up our own mess, curb our own greed and then encourage buying in the good ol usof a again. Thanks for bringing up these points. Stimulating as usual. Meryl
David - Posted on June 21, 2007
Denny, a fine, strong essay, and one with which I generally agree. The problems are clear; the solutions less so. Have you recently tried to buy non-Chinese-made consumer electronics in the less-than-esoteric price categories (with the exception of relatively heavy loudspeakers)? The trade unions of Western countries have certainly won the battles and lost the war. In fact, it's fairly difficult *not* to reward bad players in many areas. Want to make a gasoline purchase that doesn't reward evil South American and Middle Eastern dictators? How about a comfortable large auto (with the exception of Cadillac) which doesn't reward anti-semites (Ford) and/or mass murderers (the Germans, including their Mini, Lamborghini, Bentley, and Rolls-Royce brands, and the Japanese). Anyone old enough to remember the photos of a grinning Hitler posing with Dr. Ferdinand Porsche when they jointly announced the new Volkswagen, or of a proud Hitler giving the Nazi salute from his giant Mercedes touring car? The notion of not doing business with morally repugnant entities is an important one. It's just one that is oftentimes difficult to follow (and I refer here not to luxury cars, but to petroleum products and most consumer goods).
Barry - Posted on June 21, 2007
It's time to move from Free Trade to Fair Trade. With the collapse today of the Doha round of the WTO, we should view this as an opportunity to move the world in a different direction. Import tarrifs, whether they are are raised, lowered, or abolished, should be based on the trading partners mutual use of similar practices. If a country uses child labor, polluting energy, doesn't pay health care, etc. then it should have to pay higher tariffs to export to countries that have those in place. It's time to stop the race to the bottom. Further, we should revive a practice that China and other countries use. As a company, if you wish to export some of your goods to the USA, you should have to source or build a certain percentage of your product in the USA. We are the world's largest consumer market, it's time to use that to our advantage. If multi-nationals want to operate here then they will need to employ people here.
John Bergh - Posted on June 21, 2007
Well said! Another issue with China that scares the daylights out of me: we are providing our finest technology and expertise to what is most likely to be our next great economic and military enemy. Haven't we learned anything from our past history with the former Soviet Union? We are losing the skills and skilled people who can make, repair and operate complex equipment necessary to our national defense. Even in the best situation, can we defend supply lines to China (or India, etc) in a war? Remember Great Britian 1939-1942? America needs to wake up to this rapidly approaching threat.
Tom Buckley - Posted on June 21, 2007
I'm baffled by the willingness we Americans have to do business with a Communist country that, true-to-form, tramples on human rights. Why are we just waking up to this? What's going on here?
If we value democracy, we need to seriously re-think our relationship with China. FYI: I read this article in TNYT the other day and I thought of you: http://www.nytimes.com/2007/06/20/business/20leonhardt.html?_r=1&oref=slogin

Thanks again, Denny!

Best,

Tom Buckley
Glen Ridge, NJ
Mike McCormick - Posted on June 21, 2007
Thanks Denny. Nice to see all this stuff in one place. Interesting that the vilest biz ripoffs originate with commies. Killer line: ?Let?s be practical here,? said an American pharmaceutical executive. ?It won?t get much better until China has its own intellectual property to protect.?
Mike
Linda - Posted on June 21, 2007
Easier said than done... Sadly, China 'owns' us. If they called in our debt today...our economy would collapse.
Scott - Posted on June 21, 2007
Let's not call these actions "greedy." That word is not nearly strong or clear enough. Hell, we can all be greedy at times. The Chinese are being "criminal."
Valerie - Posted on June 21, 2007
While I understand the desire for your "No China" logo, I am beyond pessimistic about its implementation.

Don't get me wrong...I have boycotted Wal-Mart for over a decade - and marched against them. There's too much to say about what's wrong with their practices as well!

The "no China" label reminds me of "Dolphin safe" tuna, though. I never have believed it. There are loopholes. Does that mean that "only" three dolphins died, compared to the "usual" thirty, when fishing for tuna?

I've worked in marketing too, too long to take something at face value.

And even if the company's intentions are the best, how can they possibly KNOW that their vendors didn't change and start buying this or that starting material (e.g., flour in the cookie dough, etc.) from China last month?

It would be impossible to monitor.

Also, isolating China is not only impossible, considering how large a part of the world it is, it's bad policy. We won't encourage them to adopt better policies by shunning them.

I wish they would "just do the right thing," but I fear that a lot more people will have to suffer (poisoning) and lose (money - property rights) before things improve, bit-by-bit.
Jim Craig - Posted on June 21, 2007
Cheap crap from China is one of the main reason I stopped shopping at Wal-mart years ago. Of course, as an anti-chinese-products veteran of many years I can tell you that it is difficult to find things that aren't made in China at most major retailers. That's not necessarily a bad thing, though. My wife and I have reduced our spending on "stuff" significantly by following a simple policy...no matter how much we want it, if it says "Made in China" we skip it.
traian - Posted on June 21, 2007
this article is funny and unrealistic. Too bad. The USA will stop doing business with China the day they stop being interested in the oil from the Middle East. That is, never.
Monica - Posted on June 21, 2007
Well, Perdue could always say "We have NEVER used antibiotics..." if it were true, of course.

As for China, I've been trying to avoid products from China for years. The Chinese aren't Communists, they are Capitalists without a conscience.

It's unfortunate that the Olympics are being held there.
Brent D. Gardner - Posted on June 21, 2007
The idea of contaminated food scares me, too. On a different note, if you haven't read it yet, get yourself a copy of "The Wal-Mart Effect."
John Prince - Posted on June 21, 2007
Once again you've set the fox among the (Tyson sans antibiotics) chickens.

I sent this column on to some friends. But I edited out the part about the "greedy Canadian" because it is in line with the old U.S. tradition of demonizing Canadians" because we come from that vast, empty, neutral gray land mass to the north of the 49th so often shown on TV weather maps. And we get blamed for all the winter storms, even though everyone knows that they really come from North Dakota.
Click here to view archived comments...
Archived Comments:
Joel A. - Posted on June 24, 2007
The world COULD have demanded China clean up its human rights violations, leave occupied Tibet, and stop its thievery...in exchange for being allowed to host the Olympics. But the world was hypocritical and cowardly.
D. David - Posted on June 24, 2007
China is disgusting, and its hard to avoid Chinese made goods. One abuse Denny does not mention is the enormous use of prisoner slave labor, who are forced to work under brutal conditions with inadequate food and medical care. Even after a prison term ends, the unfortunates are kept in virtual slavery, forced to remain in the prison georgraphical area under brutal conditions. Wouldn't the world be better off to try to quarantine China rather than rush to deal with it?
Denny Hatch - Posted on June 23, 2007
I urge every reader to check out doswonk's comment below and then go to the URL at the end for a simply wonderful--and horrific--story of theft in intellectual property by Lionel Trains, written by John Grossmann in the February 2005 Inc. magazine. The key paragraph: 'The irony of trade-secret theft,' says R. Mark Halligan, a lawyer with Welsh & Katz in Chicago and a professor in trade-secret law at the John Marshall School of Law, 'is that your entire company can be stolen over the weekend, and you come in on Monday morning and everything's still there. Somebody simply downloads your entire hard drive.' Don't miss this story. It will change the way you think about business.
Linda - Posted on June 23, 2007
It may take time to shop for non-Chinese goods, but it is not impossible. It is even fun. For instance, for the vast amount of household goods, we buy from antique stores...specifically, things "mid-century" modern. I have found that I can find most fod I need at "farmers markets"...Check out resale shops, and auctions for good old stuff, non-Chinese.
I pay full price for new media, use the library, and covet old classic books, and live performances. The very hardest part of shopping is verification...I welcome a law requiring proof of source.
I cook, so I don't give a damn about Kraft's problems making cheap, fake food. I know where to get my cheese from a farmer who makes it...you can too. The stomach only holds so much food...it is not that dificult to choose good stuff...eat more locally grown veggies.
Daniel Leavey - Posted on June 23, 2007
Let's look at the bright side of cheap Chinese quality. if a war were to break out between, say, the U.S.A. and China, all you would need to do is wait 30 days and watch the enemy's forces come to a grinding halt when their equipment falls apart in the field. I call it the Wal-Mart syndrome.
doswonk - Posted on June 23, 2007
"Free trade" made sense 150 years ago, when the U.S. was the new, up-and-coming industrial nation, with plenty of natural resources, cheap labor, and new industrial infrastructure. Now we're the old, established economy, like the British were way back then; we have nothing to gain from a trading policy that kills our indigenous industry. Essentially, it's a phony bill of goods, part of the great Selling Out of America by Big Business. Of course, even if we could suddenly close our markets to Chinese products (you don't think Big Business is gonna let that happen, do you?), we would immediately experience crippling shortages of staple goods that we no longer make here. Sure, I hear the Free Traitors, I mean Traders, vigorously rebutting: "Unfettered trade China has made it possible for Americans to buy larger quantities of cheap stuff than ever before!!" Response: yes, some things are a little less expensive--and a lot less well made--when we produced them ourselves, or got them from Japan, S. Korea, Maylasia, Taiwan, etc. But overall the vast cost savings China manufacturing has not made its way to the American consumer.....who needs to scrimp and save every penny he gets, since his new job in the Service Economy doesn't pay nearly as well as his old manufacturing job. And is off-shoring their manufacturing to China by American companies really all that cost-effective. Read this story and decide (skim past some of the background info if you're short on time): http://www.inc.com/magazine/20050201/mth_Printer_Friendly.html
Jerry Gould - Posted on June 22, 2007
Denny,
Frequently mentioned as justification for encouraging capitalism in China ? and America does that by being its largest customer - is that this will feed the hunger for Western lifestyle and goods among Chinese consumers (which is happening ? see reports of incredibly clogged streets in Peking and elsewhere as ownership of automobiles increases exponentially) and with it the hunger for Western-style personal freedoms. A ?soft? revolution will occur in the end, and the Chinese gov?t will slowly become more liberalized. Nice theory, and there is evidence that it is proving accurate to a degree, but a collapse of communism in China looks to this observer very far off.

In fact, the balance of American interest tips away from being China?s largest customer if, as you note, we are put significantly at risk by buying Chinese goods.

Reduce our dependence on Chinese products by curbing our consumer appetites, yes, but as part of a larger goal: becoming a self-sufficient national economy. Just think of one benefit: what a difference it would make in our briar-patch situation in the Middle East if we did not have to depend on foreign oil. Will our own economy be dampened, lose some of its vibrancy, and will prices increase here if we decrease global trade significantly? Probably so, but these are costs we may need to pay. The global economy may be doing us more harm than good.
Pramod Mennen - Posted on June 22, 2007
Dear Denny,

Your ranting genuinely amuse me.I am an Indian living in Dubai and selling a Chinese product(Racks for Warehouses).I used to sell a UK manufactured product 10 years ago.Recently while valuing our old stock I found a funny discovery-UK racks 3metre high and in the light duty category are the same price as 6metre medium duty racks from China today -considering the steel price increase and currencly valies.Now who was looting whom?When the white Britisher did it ,it was ethical?Thw cheap Chinese products make a lot of businesses viable in a place like Dubai.Ca the Americans rein in their consumption pattern?I earn equivalent of $67200/- a year ,but I still drive a toyota yaris 1.3 litr engine hatchback car.Can an average American with my salary do that?Learn to rein in your consumption and mindless consumerism.China will topple.When there are less buyers who look for the details on the pack and inside the goods they buy ,Chinese mass manufacturing will collapse.Basicall ,you have to rein in one things-YOUR OWN GREED!!!!
Do not worry -the American consumerism has come to India as well.India is a disaster waiting to happen.

Thanks

Dr.Pramod Mennen
Paul Roberts - Posted on June 22, 2007
There's a basic tension between realpolitik and idealism in a democratic, free market society.

We made a calculation, back in the 70's that it made sense to bring China into the world community using dollars as the bait. So they bit.

We ignored The Cultural Revolution and Tianemen Square and everything we know all too well about their systemic brutality when it comes to basic human rights.

What was first a political gambit by the brilliant duo of Nixon and Kissinger became a kind of crack cocaine for capitalists once this massive new market opened up.

And so here we are.

No one's gonna put this genie back in the bottle. It's just like the Sopranos...just bidness.

Our business leaders will factor in pirating costs just like they factor in shoplifting costs in the supermarket. It's just bidness.

The 20th Century truly was the American Century, because we kept our eyes on the prize - our core values - more than our selfish interests.

The 21st Century is shaping up to be something quite different because our business and political leaders have a sort of moral amnesia.

The other day, at a forum in Washington, Chris Matthews asked Hillary Clinton if she would have a problem if Scooter Libby was pardoned. The usually facile senator flushed a bit, smiled weakly...and declined to answer the question.

Precisely so.
Warren Williford - Posted on June 22, 2007
Thank you for all your columns/newletters/bulletins. Re China: perfectly on target.
Phil Neff - Posted on June 22, 2007
It is another black eye for our politicians and greedy business mogols who pushed to give China "MOST FAVORED NATION" trading status knowing full well China is the most ruthless trading "Partner"??? on this planet. It is time indeed to terminate all trade with China and stop destroying our country for the gain of so few Billionaires.
Is it time for a new American Revolution?
David Culbertson - Posted on June 21, 2007
All true, Denny - and we're putting our entire nation at peril if we continue to embrace China as a primary trading partner (although the trader is really moving only one way). The reasons for not doing business with any Chinese seem endless - not only ethical and moral, but also from the point of long-term survival as GM is learning. I believe that Toyota declined to set-up Chinese factories precisely to avoid the problem GM is now facing. And did you see the WSJ article the other day about factory slaves in China? simply awful stuff!

Read this comment on China from 1896 reprinted in the latest issue of the Atlantic:

"The industrial competition of China would be incomparably more dangerous to Western civilization than that of any other nation ? They are adepts at combination, excellent financiers, shrewd and daring speculators. Though not yet rivals of Europeans in ? application of modern science to manufacture, they have given proof of ability to master that science ?

Here, however, there come up some doubts ? Will not the Chinaman of the year 2000 resemble in all things the familiar Chinaman of to-day? ?

But modern China is not to be judged by her ancient literature, but by her present life. Men who know China also know that Chinese conservatism does not extend to those activities which belong to trade, to industry, to commerce or speculation. It is a conservatism in beliefs, ethics, and customs, and has nothing to do with business."
Alison Taylor - Posted on June 21, 2007
Thanks, Denny! I wish more people would promote this information and I hope more people stop buying products from China. PBS had a wonderful program on their environmental practices - it made my skin crawl. They are poisoning their own people, so we can't hope for better treatment. I hope your logo idea takes off - it would help me buy with peace of mind.
meryl steinberg - Posted on June 21, 2007
Denny, ah the outrage. We are dealing with a question of degree not kind are we not? Just how inferior is our torture to that inferior to that of the Chinese? How inferior our Big Pharm/FDA corruption to that of the Chinese? What of the circumscribed reporting of important news here in the U.S--and attempts to lock up journalists? China is our big nasty shadow. Let's take a look at our own house, clean up our own mess, curb our own greed and then encourage buying in the good ol usof a again. Thanks for bringing up these points. Stimulating as usual. Meryl
David - Posted on June 21, 2007
Denny, a fine, strong essay, and one with which I generally agree. The problems are clear; the solutions less so. Have you recently tried to buy non-Chinese-made consumer electronics in the less-than-esoteric price categories (with the exception of relatively heavy loudspeakers)? The trade unions of Western countries have certainly won the battles and lost the war. In fact, it's fairly difficult *not* to reward bad players in many areas. Want to make a gasoline purchase that doesn't reward evil South American and Middle Eastern dictators? How about a comfortable large auto (with the exception of Cadillac) which doesn't reward anti-semites (Ford) and/or mass murderers (the Germans, including their Mini, Lamborghini, Bentley, and Rolls-Royce brands, and the Japanese). Anyone old enough to remember the photos of a grinning Hitler posing with Dr. Ferdinand Porsche when they jointly announced the new Volkswagen, or of a proud Hitler giving the Nazi salute from his giant Mercedes touring car? The notion of not doing business with morally repugnant entities is an important one. It's just one that is oftentimes difficult to follow (and I refer here not to luxury cars, but to petroleum products and most consumer goods).
Barry - Posted on June 21, 2007
It's time to move from Free Trade to Fair Trade. With the collapse today of the Doha round of the WTO, we should view this as an opportunity to move the world in a different direction. Import tarrifs, whether they are are raised, lowered, or abolished, should be based on the trading partners mutual use of similar practices. If a country uses child labor, polluting energy, doesn't pay health care, etc. then it should have to pay higher tariffs to export to countries that have those in place. It's time to stop the race to the bottom. Further, we should revive a practice that China and other countries use. As a company, if you wish to export some of your goods to the USA, you should have to source or build a certain percentage of your product in the USA. We are the world's largest consumer market, it's time to use that to our advantage. If multi-nationals want to operate here then they will need to employ people here.
John Bergh - Posted on June 21, 2007
Well said! Another issue with China that scares the daylights out of me: we are providing our finest technology and expertise to what is most likely to be our next great economic and military enemy. Haven't we learned anything from our past history with the former Soviet Union? We are losing the skills and skilled people who can make, repair and operate complex equipment necessary to our national defense. Even in the best situation, can we defend supply lines to China (or India, etc) in a war? Remember Great Britian 1939-1942? America needs to wake up to this rapidly approaching threat.
Tom Buckley - Posted on June 21, 2007
I'm baffled by the willingness we Americans have to do business with a Communist country that, true-to-form, tramples on human rights. Why are we just waking up to this? What's going on here?
If we value democracy, we need to seriously re-think our relationship with China. FYI: I read this article in TNYT the other day and I thought of you: http://www.nytimes.com/2007/06/20/business/20leonhardt.html?_r=1&oref=slogin

Thanks again, Denny!

Best,

Tom Buckley
Glen Ridge, NJ
Mike McCormick - Posted on June 21, 2007
Thanks Denny. Nice to see all this stuff in one place. Interesting that the vilest biz ripoffs originate with commies. Killer line: ?Let?s be practical here,? said an American pharmaceutical executive. ?It won?t get much better until China has its own intellectual property to protect.?
Mike
Linda - Posted on June 21, 2007
Easier said than done... Sadly, China 'owns' us. If they called in our debt today...our economy would collapse.
Scott - Posted on June 21, 2007
Let's not call these actions "greedy." That word is not nearly strong or clear enough. Hell, we can all be greedy at times. The Chinese are being "criminal."
Valerie - Posted on June 21, 2007
While I understand the desire for your "No China" logo, I am beyond pessimistic about its implementation.

Don't get me wrong...I have boycotted Wal-Mart for over a decade - and marched against them. There's too much to say about what's wrong with their practices as well!

The "no China" label reminds me of "Dolphin safe" tuna, though. I never have believed it. There are loopholes. Does that mean that "only" three dolphins died, compared to the "usual" thirty, when fishing for tuna?

I've worked in marketing too, too long to take something at face value.

And even if the company's intentions are the best, how can they possibly KNOW that their vendors didn't change and start buying this or that starting material (e.g., flour in the cookie dough, etc.) from China last month?

It would be impossible to monitor.

Also, isolating China is not only impossible, considering how large a part of the world it is, it's bad policy. We won't encourage them to adopt better policies by shunning them.

I wish they would "just do the right thing," but I fear that a lot more people will have to suffer (poisoning) and lose (money - property rights) before things improve, bit-by-bit.
Jim Craig - Posted on June 21, 2007
Cheap crap from China is one of the main reason I stopped shopping at Wal-mart years ago. Of course, as an anti-chinese-products veteran of many years I can tell you that it is difficult to find things that aren't made in China at most major retailers. That's not necessarily a bad thing, though. My wife and I have reduced our spending on "stuff" significantly by following a simple policy...no matter how much we want it, if it says "Made in China" we skip it.
traian - Posted on June 21, 2007
this article is funny and unrealistic. Too bad. The USA will stop doing business with China the day they stop being interested in the oil from the Middle East. That is, never.
Monica - Posted on June 21, 2007
Well, Perdue could always say "We have NEVER used antibiotics..." if it were true, of course.

As for China, I've been trying to avoid products from China for years. The Chinese aren't Communists, they are Capitalists without a conscience.

It's unfortunate that the Olympics are being held there.
Brent D. Gardner - Posted on June 21, 2007
The idea of contaminated food scares me, too. On a different note, if you haven't read it yet, get yourself a copy of "The Wal-Mart Effect."
John Prince - Posted on June 21, 2007
Once again you've set the fox among the (Tyson sans antibiotics) chickens.

I sent this column on to some friends. But I edited out the part about the "greedy Canadian" because it is in line with the old U.S. tradition of demonizing Canadians" because we come from that vast, empty, neutral gray land mass to the north of the 49th so often shown on TV weather maps. And we get blamed for all the winter storms, even though everyone knows that they really come from North Dakota.