Unsafe and toxic products will reduce foreign demand for Chinese goods. Reduced demand will lead to a reduction of cash flow into China which will, in turn, lead to a slow down in China's economy. Without a sustained flow of foreign cash into the country, China's economic boom will be derailed.
Many look to the Chinese economy as the future, but they miss one key problem. The reason the Chinese can offer such cheap products is because they don't always use the correct materials. They have been known to use hazardous materials, because it saves them some money and they hope no one will be the wiser. As long as we keep seeing news reports, such as lead in toys from China, their economy is going to slowly deteriorate.
The cost of answering to consumer complaints will cause companies to pull out of China. While China doesn't answer directly to consumers, the outside companies doing business there have to. It is costing them money and good will, because people have become ill from tainted seafood, pets have died from liver failure, and banned substances have been used.
Given the fact that so many products are produced in China and this helps countries across the globe reduce costs and therefore prices, China is too integral to become derailed economically. Overall China's products are not toxic, and the benefits of companies continuing to employ Chinese manufacturers definitely outweighs any concerns; this in turn will keep China growing for a very long time.
We have in past years heard about a lot of products which have had problems. Some of these include tainted pet food, bad sandals, bad food,etc. And, unfortunately, some of the products have been bad enough to cause death and injury. There were and still are a lot of people who do their best to boycott Chinese products because of their perceived lack of quality and safety and these are now added to the number of people who are just not interested in purchasing products not made in their own countries. If the Chinese exports continue to be seen as bad, unsafe and inferior, those who have enough money to purchase something else will do so and the Chinese economic boom could be slowed down greatly if not actually derailed.
As the Chinese continue to ignore outside health and safety standards for their exports, they will start seeing less and less demand for their products and services, This will lead other countries to seek alternative sources for their imports. It might (optimistically) create jobs in countries like the U.S., who in light of high employment and unstable economy, needs an domestic economic boost.
China is a resilient country, and it will correct the problem of toxic products. Also the country produces such a large amount of the world's products that the small amount of bad products will not affect their boom. China will keep on becoming a consumer giant because of their desire to become the best.
If you think toxic goods made in China will be shunned by consumers, I have two words for you - fluorescent lightbulbs. Of course, our government had a hand in forcing us to use one of the most toxic items in existence, but it isn't like the National Labor Relations Board isn't forcing other industries overseas. In fact, we closed down horse slaughterhouses that used the meat in pet food, so for those who have lost their pets to poisoned food made in China, thank your Congress.
While China may suffer a small setback when toxic or other unsafe exports are found, overall, it will not hurt their economic boom. Countries, like the United States, are extremely dependent on the cheap labor and massive workforce that China provides. If those jobs were to come back to the U.S., the cost of most of our goods would be astronomical and unaffordable.
China continues to export goods that are toxic and unsafe because the countries importing those goods refuse to cut off doing business with China. The United States, for example, has done massive recalls of toxic toys for children as well as deadly dog food. To Americans, children and pets are practically sacred, and yet the almighty dollar rules. Until the U.S. and other countries stand up and refuse to do business with China as it ships out these dangerous products, China's economic boom will continue.
I don't believe China's economy will struggle as the U.S. economy has, because so much of the world relies on what China imports and exports. Their role in the world is constantly expanding, and does not show any signs of slowing down anytime soon. They are quickly passing the United States in terms of being an economic and world power, in my opinion. I believe they have the knowledge and power to keep it up for years to come.
Corporations love to make money. One of the best ways to do that is to cut down the cost of making your product, and production in China is the solution to that problem. If companies cared about quality and safety more than they did money, they would not be having their products made in China in the first place.
When someone gets caught overseeing unsafe exports in China, they do not go to jail, they do not get reprimanded, and they don't get fined. They get killed. This helps ensure that other exporters will not take similar cost-cutting and unsafe avenues. The cases of unsafe exports from China have been few enough that they can't come close to affecting their overall output.
While there have been examples of some Chinese exports being unsafe, the country's export business is massive. If one considers the amount of product leaving the country just to the United States alone compared to the amount of unsafe products, it is a pretty slim margin according to news reports. Sometimes quantity does prevail over quality. One thing to consider is also this: as long as you have a buyer for a product, they'll keep buying it, and China will keep exporting it. The bottom line is profit, and there is profit to be had in importing cheap goods from China.
People are amazingly stupid about their purchases and often don't even care about the toxicity or cheapness of the materials as long as the price is low enough. China can keep exporting such things and still have a strong economy.
Although many of the Chinese exports sold in the U.S. and other countries are of questionable quality and safety, these concerns will not halt or even slow the country's economic growth. There will always be a demand for cheap products. Consumers have historically been unable to regard quality above price for the bulk of items. Though safety concerns for high dollar items can have severe effects on companies (I.E. Toyota), most consumers do not pay close enough attention to product recalls and news stories to decrease their consumption of cheap, and potentially dangerous, Chinese exports.