September 2012

Anyone who regularly observes the topsy-turvy world of Chinese politics understands that the past, even the remote past, can exert a powerful influence on the present and future. Major historical anniversaries — like that of the 1989 Tiananmen Massacre or the founding of the Chinese Communist Party — can send either perennial chills or doctrinal fevers through China’s political culture and media. In China, the past is always present, even if, as in the case of Tiananmen, it cannot be readily talked about.

News late last week that China-made dog treats have been linked to the deaths of 360 dogs - and 1 cat - and sickened another 2,000 should prompt pet owners to do one thing: read the labels. 

The Food and Drug Administration in a report says the majority of complaints since 2007 involve imported chicken jerky (treats, tenders, and strips), but others include duck, sweet potato, and treats where chicken or duck jerky is wrapped around dried fruits, sweet potatoes, or yams.

The vast majority of dog treats and toys sold by the largest pet retailers are made in China. I flipped over a pumpkin shaped rawhid in PetsMart yesterday and, yep, there's the sticker, Made in China.

As anger increases over a territorial dispute between China and Japan, Chinese authorities have been playing both sides of the issue by quietly encouraging recent anti-Japanese protests, then publicly reining them in.

Experts point to signs that Chinese authorities have cleared the way and, in some cases, even fueled some of the protests that have erupted in recent days. At the same time, officials have been careful to keep control over the masses, leery that gatherings of malcontents could easily turn against China’s government.

But even in the cases where the outsourcing cost savings were significant, the idea that American wages were way out of line with Chinese wages and the only future for American workers was grinding wages lower and lower to compete with China has been oversold. Various writers, including yours truly, pointed out that China’s wage advantage would not hold indefinitely even if it managed to keep its currency peg (which, separately, it hasn’t; the change to a currency basket has over time resulted in appreciation against the dollar).