2008 Olympics - Chance to ‘Toy’ on Conspiracies

With the recent spate of consumer backlash in America on ‘Leaded’ toys and pharma products. The American Media, as always, has been quite efficient to paint Red black and blue with bruises with barrage of conspiracies to divert the consumerism.

American consumerism, which is rated at the top, is also most vulnerable to changes. Be it politically motivated or factual, the herd of sheep bleats incessantly. However, China had to slow down, recuperating from 10.9% of growth from 11%ish during the first half of the year.

As the Olympics approach, Beijing is all set and preparing for a gala event. China can mend ways too capitalising on the gold medals it has to get away with. This time the competition is 2 fold, to say the least.

Without divulging much on the crises that has gripped Chinese toy making industry and others and put her (China) in the limelight for what is being snobbed as lesser enforcements in quality check. Japan too, when introduced Toyota 25-30 years back, was being looked down upon. Who knew, it would be setting in its claws with 70% of its current market share as the leading country in the very industry.

Some of the measures that should be taken can be

No retaliation, what so ever, be it political or any show of nervousness to be apparent before the world. But this is being said late. The head of Mattel has casted himself into the valley of quietness and setting a question mark. Although from the onset this was in repecussion of being held accountable and executable. Simply out of the fear of reprehension.
Olympics are around the corner, Chinese officials better be on a look out for its financial arm to make a presence and a dint through its superior exhibition of its industries. Possible would be trade fairs which could attract even more tourist inflow which would be quite positive. Morover, much is to settle into ignonimity in the celebrations around the 5 rings.
Better would be clamp up concerns which go for early profit making, compromising on quality. Profit should be recessed, not too much, quality should be emphasised. ISO 9000 and 14000 should be handy. Its high time, steps should be formulated and enforced, starting with hefty penalties for the prior offenders.
Industrial monitors and watchdogs should be setup with tighter regulations. In its infancy, the support should come in from the Communist Party. A country wide affair needs to be put in place. Possible hotspots should be identified and clamped down upon. Piracy has been effectively put under stress, 72% to 80%, which is quite healthy.
Olympics should also see expenses on the balance sheets to be recorded higher. This could be another bypass for the penalties by allowing ‘good and healthy’ concerns to exhibit their make. Free samples should be distributed, which should be certified, as stated above, among children appearing as guests for the event. Although, consumer weariness would linger on for some time, as long as Media is not surrounded by flabbergasted stories. Toy making was another gimmick and a pawn that was not given the attention and the gun to defend. The gun of quality.
Industrial testing should be one of the facets of the Industrial monitors discussed above. Series of testing phases should be implemented in industrial concerns.
A legislated syndicate should be initiated to list the units which are highly performing on the graph and that should make a global mark.
Media control is where China still has to make a mark. Telecom and media go hand in hand. China should overcome the language barrier, for which it has endeavoured but much is still to be discovered. Global race of acquisitions may not be China’s way so as to invite attention but some alternative and initiative should be there to ward off the conspirating parties which want to see the Chinese giant to recede at some point. At this point, these unseen forces have succeeded.
Some serious spending should be done on -
Healthcare services - subsidies should be doled out. After all $ 1.2 trillion of reserves expect some better treatment.
Pollution prevention - although China has stopped the input of Leaded fuel but rampant utility of lead products, which also dotted the toy recall, is still existing. Cheap labour means higher profits but cost cutting is short term business manipulative but not for long.
Research and Development - China surpasses Japan in this area, but innovation is still a thing to be desired. Pakistan youth can be very much helpful if Beijing intervenes through investment in Education in Pakistan in the Universities. The West brought with itself not only Cigarettes and Tea, but also Universities. Innovative industries can be set up at the West border of China, which would not only be remote and accessible to Pakistan. It would be a divident paying move.
Concluding, China was preparing to go American with its Automotive industry, which sees itself stalled at the moment. It also sounds, the toys have punctured the Chinese car introduction in the America, for now. Though problems exist everywhere, time incentive and cushion should be given to the Communism.

China has been on a sprawl to engage Rover manufacturing and doling out Chinese cars for as meek as $10,000 in the American market. Cards needs to be reshuffled again and ‘Wait and See’ element needs to be exercised before the dust settles in.

Source: http://articles.moneycentral.msn.com/Investing/Extra/BrokenChinaADysfunctionalNa tion.aspx

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