Can PR Save China?

Given the nature of the problem, setting up a working group and appointing someone new doesn't seem all that impressive. Shouldn't there be something more?

You need to understand that when China sets up a working group it's not a watered down version of "well, we'll look into this." They really look at how to address the most fundamental issues. I wouldn't read a working group as some impotent organization that won't do much. I have confidence that there will be some key outcomes from this. They have developed a five-year plan, but have also made short-term moves related to areas like inspection, enforcement, and the punishment of violators. Madam Wu Yi was the same person assigned to the SARS incident years ago and she is known as being the official that can get things done here.

Did these controls and inspection procedures really not exist before the crisis? Or was there a problem with implementation due to factors like corruption and apathy?

They certainly had laws beforehand, but there wasn't a high degree of attention to this issue before. Manufacturers were cutting corners to save cost and that isn't acceptable. With China's exponential growth in exports, there are bound to be problems. The issue is to make sure controls are in place before products leave China. If there is a silver lining out of this, it is that the situation has forced everyone to look at the systems and processes that exist.

Could China be facing less of an image crisis now if it had handled things differently when the first few product recalls were issued?

This is largely an organizational issue: five different ministries are responsible for China's exports and they are poorly coordinated. The whole export crisis has created a focus on how to provide an umbrella organization to help coordination between these. This situation has arisen because of the coming together of many issues at one time: the problems with seafood, pet food ,and lead paint in toys all came to light at about the same time. This has focused people’s attention on the weaknesses in the system and the overdependence of the world on China. The crisis at hand is ultimately a result of the Chinese economy’s breakneck pace of growth and the flaws in the system are now coming through.

It sounds like something has to change in the way goods are produced and not just in quality inspection at the border. Do you see that happening?

To be honest I don't know a whole lot about the production process. One thing I can tell you though is that things are changing and this is a different China from what it was 13 years ago. It is much more open; there are much greater flows of global business coming in and out. It is an international business center -- one of the most vibrant in the world today. With that vibrancy I've watched officials react differently. They are quite open and collaborative.

Do you think it's reached the point where parents are looking to see where the toys they buy were made?

I've been in conversations with parents who say they certainly do that now. And that’s the challenge that brand China has: the recalls have had an emotional impact on people that it now needs to recover from. Personally, I'm a parent and I don’t look at the labels. But I know there are people who do so maybe I'm not really representative.

What kind of message did China's July execution of Zheng Xiaoyu, the former head of the State Food and Drug Administration, send to the world about China's commitment to product safety?

China certainly imposes harsh penalties on those who violate the law, but Zheng’s execution was punishment for corruption and is largely unrelated to the present issues. Many speculate, though, that the government chose to execute him at this time to somehow show the world they were serious about the present crisis, but that is just speculation.