China in the Hot Seat — Hot Crossed French Buns

If it seems that we've been covering China quite a bit of late in these pages, we have. But it should come as no surprise to those keeping up with the global business headlines considering that China is continuing to make the news for all the wrong global sourcing reasons. Consider this story to come out of France. According to an AP wire dispatch, "Customers in France who bought Chinese-made recliners are complaining of stinging allergic rashes and infections." The importer was forced to withdraw the products from the market and pinpointed the cause as being linked to "an anti-fungal chemical in the chairs". But in fact, this supply risk incident is quite ironic. Usually, companies face added supply risk in China from suppliers that cut corners. In this case, the supplier was concerned that the rainy season might create an additional mold risk in the product so rather than just "one sachet of the anti-mold chemical [that was] meant to be inserted into the chairs … some contained as many as 10." Which, as was painfully discovered, was not exactly a recipe for a quiet night of reclining in front of the television.

- Jason Busch

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