Thursday, February 17, 2011

China frauds that kill people

Rock climbing equipment is sold by name and reputation.  There is not a government standard but climbing equipment is tested to destruction by the International Mountaineering and Climbing Federation (the UIAA).  The UIAA produces one of the best private safety standards in existence.

Now to add to children's toys containing lead there is fake climbing equipment coming out of China.  Petzl - a reputable manufacturer - has been putting out warnings about equipment which copies their logo and stamps but does not meet UIAA standards.  The equipment fails under 70 percent of required test loads.

The Chinese frauds I write about will hurt you financially.

This Chinese fraud will splatter your brains on the ground.

Whilst it is trite to say fake rock climbing equipment is a geo-political issue fake rock climbing equipment and lead in toys will fan protectionist flames - and I doubt that will be constructive.

Bluntly: corporate manslaughter through fraud is something no civilized society takes lightly. This is headed in that direction.


John

7 comments:

Anonymous said...

John

That is nothing ... see this
http://www.livemint.com/2011/02/13203926/Made-in-India-faked-in-China.html

janm said...

It has been happening for a while. See:

http://www.nytimes.com/2007/05/06/world/06poison.html?_r=1

Cetamua said...

It has been happening with heparin too. http://hcrenewal.blogspot.com/2008/02/in-middle-of-all-those-pigs-in-china.html

At last count 81 dead, no indictments, no prosecutions. Kind of like what's happening with Wall Street.

Apparently, the "authorities" (FDA) are investigating the case.
http://hcrenewal.blogspot.com/2009/08/who-investigated-case-of-deadly.html

Of course, the same authorities were much more "effective" when some US doctors tried to help some US women reimporting US made IUDs from Canada.
http://hcrenewal.blogspot.com/2010/07/prosecuting-doctors-for-importing-iuds.html

That goes to show you where are the priorities of this so-called "civilized society" of ours.

Yet, we were told that unrestricted trade was good for us. Furthermore, regulations and inspections are bad!

If one could be guaranteed not to be a victim as in the heparin case above, that'd be true. Which is tantamount to say that if I couldn't die of anything, I'd be immortal.

dunkelblau said...

" ... doubt that will be constructive."
Bull market in caveat emptor may bring some jobs back home (just don't let guys like Stewart Parnell run a factory).

buyersstrike said...

Cannot leave out the tainted milk scandals from 2008. CNN wrote about it link and Time did as well, link.

This scandal caused US listed Chinese reverse-merger darling Synutra (SYUT fka VVIN fka VUSPF fka VLSH fka BITK fka APEH!) to plummet from $50 to $10 in a few short days.

More disturbing, however, is that a few months ago the Chinese government jailed one of the activists who brought the scandal to the world's attention. The BBC reports link:

"A Chinese activist who campaigned for compensation for victims of a 2008 contaminated baby milk scandal has been jailed for two-and-a-half years.

Zhao Lianhai, whose child was among the 300,000 made ill by the milk, was convicted of inciting social disorder.

Mr Zhao founded a website to provide information for parents after it was found milk formula had been laced with the industrial chemical melamine to give it a high protein-content reading. At least six babies died."


Not surprised in the least that a Chinese company would do such a thing, and not surprised the PRC government would jail the whistleblower.

What I am surprised about is the appetite for these companies among Westerners. When will they open their eyes?

Anonymous said...

Whole Foods is selling
"organic" food grown and packaged in China.

If it were stuff like bamboo shoots or other Asian/tropical items, that would be one thing. What's outrageous is that the produce is stuff that is grown in the U.S. such as spinach and "California Mix".

In addition, organic food purveyors like Woodstock Farms are also selling food grown in China...Woodstock Farms has this written on their packages:

"Supporting small farmers and the local economy everywhere".

Beware of QAI or Quality Assurance International. They are a group of 'certifiers' that hires locals to 'allegedly certify that produce is grown to strict organic standards as to soil quality, no pesticides, handling, storage etc. Corruption in China?

Neha said...

China is expert in faking any item on this earth.They have large population and has to provide employment.For ethics sake they should print made in " India " in Chinese language..The pity is EU and USA purchase their cultural symbols/flags from China.
China can produce anything but should print made in China on the item.

General disclaimer

The content contained in this blog represents the opinions of Mr. Hempton. Mr. Hempton may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Hempton's recommendations. The commentary in this blog in no way constitutes a solicitation of business or investment advice. In fact, it should not be relied upon in making investment decisions, ever. It is intended solely for the entertainment of the reader, and the author.  In particular this blog is not directed for investment purposes at US Persons.