Updated: Jul 4, 2020
In March of 2020 the market for Chinese-supplied CoVID-19 supplies began going crazy. Here is how China tamed the chaos.
As countries around the world began to understand the seriousness of the CoVID-19 pandemic, buyers were tasked with urgent requirements to attain supplies. These buyers, while under high pressure from their constituent organizations, additionally found themselves competing with each other.
This situation, not surprisingly, led to some rushed decisions and cutting-of the normal corners in the regular buying process.
In late March Dutch officials received non-conforming product (masks) from China. By the time the officials realized the problems, some of the product had been distributed to health care providers (HCPs) creating serious unaccounted deadly risk for HCPs.
These masks purportedly had fit problems (not sealing properly as intended) and ineffective filtering.
In short order, similar reports began pouring in including from Spain, France and Turkey. Indeed to this day, Turkey is considered by many to be a major forwarder of defective product from China.
China, like most countries, is keen to ensure a good reputation in global markets and of course wants to avoid distribution of poor quality product and the potential for related lawsuits and legal problems for their local companies.
Halt to all Exports
The first thing China did was to halt all shipments of CoVID-19-related supplies. This bought them a few days to begin implementing the next steps of the plan.
Secondly, the Chinese government began a rapid program to re-certify suppliers for adherence to national and international standards for production control and product quality control. As companies attained recertification, they were re-certified for export.
Local Government Lot Inspections
Many products produced in China have requirements for local government lot inspections. These standards, as is true in many countries, are subject to enforcement strategies ranging from strict to somewhat more relaxed based upon the needs mandated by prevailing conditions. The Chinese government reinstated all local lot inspections as a secondary measure to ensure product quality.
The next step taken by the Chinese government was white-listing manufacturers who had completed necessary re-certifications and implemented required lot inspections.
Quasi-Governmental Third-Party Oversight
Lastly, government officials empowered non-state entities such as trade organizations to provide an extra layer of oversight, and in some cases empowered the non-state entities with enforcement authorities.
These steps quickly restored order to the market. Indeed defective products reports from China-supplied product are now increasingly rare.
What Should You Do?
The greatest risk is probably an illegitimate supplier pretending to be a legitimate supplier who then uses "incentives" to work their way through Chinese outbound customs to supply "re-branded" inferior products..
If you wish to receive product from China, you should work with a reputable supplier such as Rain8 or one of our reputable peers.
We can help you with the following simple checklist:
Validate manufacturers business license and authenticity
Validate the exporter's business license, authenticity and authorizations
Obtain local government manufacturers certifications
Obtain local government lot inspection reports
Validate product authenticity and conformance to relevant international standards
Utilize Western third-party inspection services such as https://www.sgs.com/
Rain8 can help you with all of the above issues - please contact us at: https://www.raineightsourcing.com/contact
Contact us here: https://www.raineightsourcing.com/contact for more information about the contents of this article or how we may assist you with a custom product or service search to meet your business needs.
Rain8 Group, http://www.raineight.com/, has over 20 years experience in China market-entry and business development. Rain8 Sourcing, https://www.raineightsourcing.com/, has over 10 years experience in developing and managing supply chains in China. Rain8 Group and Rain8 Sourcing are wholly-owned subsidiaries of Precision Arrow Placement LLC, http://topranger.us/, a producer of wired and wireless cloud-based sensor networks operating over LoRa WAN for the industrial and agri-tech markets.
Rain8 partners with the Chinese central government and with influential Chinese industry organizations to achieve superior results for our clients including:
○ product quality,
○ product authenticity, and;
○ security of financial transactions.
Visit our partner, The Chinese Council for Promotion of International Trade (CCPIT) here: http://en.ccpit.org/info/index.html