German Quality in China

Germany is known for its high-quality, precision products, and as the world's export leader, it relies on that image to sell its technology and other goods.

So respected is German expertise, for instance, that some cannot keep from copying it. During her visit to the China this week, German Chancellor Angela Merkel criticized Chinese copies of German cars slated for display at the Frankfurt Auto Show in September.

But, possible product piracy is one issue; quality control of German products made in China is another.

"Among European countries, German companies are certainly among the leaders in producing in China," said Victor Vogt of the Cologne Chamber of Commerce and Industry (IHK).

Of around five million registered German companies, around 3,000 produce or are represented in China, Vogt said.

Checking products

Yet the "Made in China" label has taken serious beating due to safety concerns among products ranging from food to toothpaste to tires. With American toymaker Mattel in recent weeks having to recall up to 18 million toys made in China, the issue has grabbed even more attention among the public.

"Because of Mattel's massive recall, our work has become more important than ever," said a press release of the Hong Kong branch of the Cologne-based TÜV Rheinland.

The company claims to be the world leader in product quality testing and examines everything from skin cream to hotels and cruise ships. It examines over 100,000 products a year in 60 different countries, but its main markets are the United States and Europe.

Toys make up about 15-20 percent of the products the group tests.

"In Mattel's case, there seems to have been a problem in quality management," said Hartmut Müller-Gerbes of the Cologne headquarters of TÜV Rheinland.

China, for its part, has defended the quality of its exports. It has blamed faults in US designs -- and not Chinese workmanship -- for the Mattel recalls and also pointed to varying global product standards.

That's where TÜV comes in.

Müller-Gerbes said companies can pay a fee (3,000 euros, or $4,000, is a base price) to have their products tested by TÜV in the hopes of gaining a "seal of quality." The TÜV standards are often far higher than those required by law, but can give companies an edge in the market.

Furthermore, TÜV is informed about the product safety regulations in specific countries.

"Some German discounters like Aldi and Lidl force their production

companies in China to go to the TÜV branch there to be informed before they even begin production of toys, for instance, for the German market," Müller-Gerbes said.

He stressed that with Mattel's dolls, cars and action figures -- which were recalled because they contained lead paint, or tiny magnets that are harmful if swallowed -- it was not standards which were too low. The problem was faulty production.

However, he also said that there are far too many products which go to market without being inspected at all.

Further expansion

But rather than questioning goods production in China, more and more German companies are producing there to save money, especially in labor costs.

Also, they seek to gain better footing in the Asian market.

The Deutz company, which manufactures diesel engines for trucks and construction equipment, just entered into a joint venture with FAW, the biggest vehicle and car manufacturer in China.

"So far, we produce only in Germany and Spain," said Andrea Bleesen of the Deutz company. "We have to follow our customers in this market as China grows and grows. They say they need equipment adjusted for local needs, so rather than manufacture here in Europe, it makes sense to produce in Asia since it will also save us in transportation costs."

While the majority of those Deutz engines will be be sold within China, around 20 percent may be sold world-wide and will have to fulfill quality and emissions standands of the appropriate countries.

But Bleesen is not worried about possible infringements on quality.

"It's Deutz technology and we will maintain German quality, even in China," she said.

Vogt of IHK agreed.

"German companies which produce in China normally use the same standards they have in Germany because some of the products have to come back to European markets," he said.

Vogt pointed out that many German companies, like mail-order firms, do not actually produce themselves. Instead, they outsource to Chinese producers.

"But they must ensure that the products undergo quality checks before they leave China," he said. "However, you can never guarantee that production quality is one hundert percent because only a random sample of products is tested -- say, one hundred items of millions produced."

A shift in mentality

Whether its technology or toys, "the world public has become more aware of product safety issues due to the Mattel scandal," said Müller-Gerbes.

He said the task now at hand is to ensure that more inspections are conducted and safety laws enforced, regardless of the country. He also indicated that a seal of quality is becoming increasingly important due to the sheer number of products on the market.

"In the toy market, at least, quality seals can help parents weed out the

bad apples and narrow down their choices," Müller-Gerbes said.

Finally, consumers must shift their own habits of going after the cheapest price rather than the better quality, he said.