Andrew Cannarsa, The Examiner
2007-08-16 07:00:00.0
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BALTIMORE -

As Mattel addresses its latest recall of Chinese-made toys sold in the United States, U.S. retailers consider future dealings with Chinese manufacturers.

“U.S. suppliers have to start reassessing the benefit of trusting Chinese suppliers with supplying high-quality products that meet U.S. safety and consumer-health standards,” said John J. Tkacik Jr., senior research fellow with the Asian Studies Center at the Heritage Foundation in Washington.

To maximize profits, Chinese manufacturers cut costs by developing products with substandard materials, Tkacik said. The results, as Mattel has learned, can lead to consumer injuries and expensive product recalls.

“This is something that is endemic on the entire spectrum of Chinese products,” Tkacik said. “Unless you’ve got people on the ground, you have to assume the Chinese producers are going to get the item to you at the lowest cost.”

When the faulty products prompt consumer litigation, the U.S. retailer, not the Chinese manufacture, receives the complaint, Tkacik said.

“Clearly, the U.S. companies are the ones that have the incentive to clean up this mess,” Tkacik said.

It is too soon to point to the effect Mattel’s recall of more than 9 million Chinese-made toys sold in the United States will have on the retail industry, said Tom Saquella, president of the Maryland Retailers Association. About 70 to 80 percent of toys sold in U.S. stores are made in China.

“For the companies involved, they’re glad it’s happening now and not during the holiday season when they do most of their business,” Saquella said. “So many things sold here come from overseas — it rings some alarm bells.”

If U.S. retailers opt to spend more on product testing and certification, consumers might feel the effects in the form of higher prices, Saquella said.

“The retailers’ biggest concern is the consumers don’t lose confidence,” Saquella said. “That can be a lot more damaging than having to endure additional costs.”

Mattel has recalled 19 million Chinese-made toys — 72 products — worldwide because they contain small loose magnets and lead paint, presenting dangers to children. The recalls will cost about $30 million, the company said.

“Mattel has rigorous procedures, and we will continue to be vigilant and unforgiving in enforcing quality and safety,” Robert A. Eckert, chairman and chief executive officer of Mattel, said in a statement.

The Chinese Embassy in Washington didn’t return calls seeking comment Wednesday.

Safety Information

» Toys recalled in the United States include Polly Pocket, Doggie Day Care and Batman products and the Sarge toy from “Cars.”

» For additional information regarding Mattel’s magnetic toy recall, contact the company at 888-597-6597 or visit www.mattel.com/safety.

Information from the Associated Press was used in this article.

acannarsa@baltimoreexaminer.com