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News & Analysis | REG•WATCH Blog | Press Room

Wednesday, June 27, 2007

Federal Regulations: The American Advantage

Two stories today illustrate a dangerous trend which will likely get worse before it gets better: the importation of dangerous products from China.

Much like America during the Industrial Revolution, China's economy is making great strides and the global economy is benefiting. But, also much like America, China's economic growth is outpacing government regulation and oversight.

The difference is — because rapid globalization is eroding trade barriers — dangerous products are easily spilling onto foreign shores.

One story indicates China is on an improving path toward regulatory responsibility. The lede in a New York Times article claims Chinese regulators have "recently closed 180 food plants and that inspectors had uncovered more than 23,000 food safety violations."

However, the other story, also covered by the Times, shows how far away the end of the path may be. A Chinese tire manufacturer pawned off hundreds of thousands of defective tires on an American importer. The National Highway Traffic Safety Administration is now aware of the defect, and the importer — which deserves its own share of the blame — will recall the tires.

If this trend continues, safety may grow as a commodity on the world market. Industry lobbyists who claim American businesses cannot afford federal regulation will begin to find their argument holds even less water than it does currently.

For the most part, America's advanced regulatory system ensures safe and reliable consumer products. America can't match the cheapness or enormity of the Chinese workforce, but we can be a leader in safety. Ultimately, American business can't afford not to have a strong and responsive regulatory system.