Poor regulation caused Chinese recalls

　　It is said that the new Regulations on Defective Automobile Products Recall which are being revised and expected to be approved before the end of the year will strengthen the supervision on the automakers.

　　In fact, regulations on recalls are essentially belated efforts, which are used by the government to supervise the automakers and protect the interests of consumers.

　　According to China Economic Network, essentially, one enterprise is a profit-making tool. They can survive in the market is exactly because they are able to chase profits and create value. Enterprises are bound to pursue profit due to their nature. Sometimes they do some good to the society is to create a good image, thereby to pursue greater profits. In this sense, any enterprise is utilitarian. They can not survive in the market once they stop chasing profits. Before China’s reformation and opening up, the enterprises did not care about profits so much, as a result, they lose vitality. But in the pursuit of profit, the enterprises must also be bounded, which is exactly what government regulation for. Without any regulation, they will develop in the opposite direction when they become extreme and make harm to society and endanger the public. Like a Night Watchman, Government should watch the clock and stamp out crime to ensure the citizens have a safe living environment when they are sleeping.

　　Supervisions over enterprises should be multiple. First of all, qualification authentication and manufacturer certificate are “preventive measures”, but they are also flawed so there still needs “belated efforts”. When the enterprises hurt the public interests, the government will punish them and let they pay a high cost in order that they will consciously make qualified products to eliminate hidden dangers in the first place. Without the regulations, the enterprises will have nothing to fear.

　　The recall regulation is twofold punishment to the enterprisers. They have to suffer both huge financial losses and damaged image. Therefore, the enterprises will never carry out recalls initiatively if there are no coercive measures. To recall cars, is not as simple as to change a part, the loss will be enormous.

　　The new regulation on recalls is progressing. It improves the fines up to 500,000Yuan.

　　In recent years, that auto recalls carried out frequently, to some extent reflects the rising rights protection awareness of auto consumers. In China Automotive industry has been the first to be opening up and has a more comprehensive integration and relatively deep globalization compared with other industries. Unlike the Real Estate Industry, with poor consumer rights awareness, people always buy a house confusedly, some even can not tell the difference between construction area and utilization area. From this sense, the automobile consumption is relatively mature, and auto manufacturers are more law-abiding. Perhaps it is wrong even to mention the car manufacturers in the same breath with land agent. Here is not to say car manufacturers naturally have high moral standards than the real estate businessmen, but the auto industry accepted internationally standards from the beginning with international and consumers are constantly “observing the outside world” and “always taking the international market as a sample”, which both created today’s automotive industry environment.

　　From a global perspective, it is not long for the Chinese ordinary people to have a car. It is not until the year of 2002 that cars poured into the Chinese family. At first, consumers did not know much about cars. They felt pretty good as long as the cars can run on the road. This is why Chinese and foreign consumers have totally diffident reactions when the quality problem arise. Since Chinese consumers have a very low requirement on the products, the producers feel they are easy to fool. However, in American where it was said people will present a plea even if choked by cola, the mature market economy and sound legal system make enterprises always fear of doing something wrong, no chances. Therefore, the products exported to the U.S. market are usually the best. On the contrary, due to lax regulation in China, the standards of goods exported to China may even be deliberately lowered down. Therefore, the standards of products exported to China and the U.S. are different.

　　But with the accumulation of experience, particularly the establishment and improvement of monitoring system as well as the promoted rights protection awareness of Chinese consumers, we will enjoy the same treatment as foreign consumers. The upgraded new regulations recall is an important step on this road.

　　(Translator: Yalong/Jessie)

　　See original Chinese report Please click: http://auto.sohu.com/20100730/n273875708.shtml