‘Made in China’ the brand is in the midst of a credibility crisis as more and more edible and non edible products face a recall after undergoing scrutiny by US regulators.

Pet food suspect of poison, sea food contaminated with dangerous antibiotics and common toothpaste laced with antifreeze compounds has raised alarm among consumers about the ‘Made in China’ products.

Is it the desire of cut throat competition to get goods at rock bottom prices or is it the tense Sino-US trade relations playing out over quality controls that have brought Chinese exports into focus.

Perhaps the truth lies somewhere in between

In 1986, the Chinese exports to USA were $ 4.7 billion only, in 2006 they were a staggering $ 288 billion and China only joined the World Trade Organization in 2001.

Competing with other established Asian brands like Made in Japan, the Chinese brand is under a tremendous pressure to respond.

The Chinese embassy in Washington in a written statement retorted “Certain isolated cases, should not be blown out of proportion to mislead the public into thinking that all food from China is unsafe.”

The controversy has begun to take political overtones. There is reason enough.

Its not that the Chinese have hatched a conspiracy to sell contaminated food items oversees, when the emerging economy is mainly an export oriented one, creating large low cost employment opportunities. Export is the oxygen for the economic lifeline of China and they would not try and harm this bread earner.

On the other hand, the products found deficient in quality may not all be a cooked up case. Consumers demand for rock bottom prices have driven nearly all companies to low wage environments. Large population based countries like China and India have cashed on outflow of manufacturing and service jobs.

But in the US and other western economies, quality levels remain high and the manufacturing technology in the rising Asian economies may simply not be in a position to deliver the goods demanded.

The rising Sino-US tension is palpable in other spheres also

Recently the strike capability of Chinese missile systems to knock out vital satellite systems sent shivers down the military preparedness of many nations including the US and the NATO alliance.

The huge Sino-US trade imbalance, reflecting the financial muscle of a nation of 1.3 billion people, is making America rake up the issue of currency distortions. China’s command economy has kept the Dollar-Yuan exchange rates under tight control. America is demanding flexibility, which is not being conceded. Any change in currency exchange rates will affect exports as well as the wage structure in China mainland.

The 2008 Beijing Olympics is to showcase China coming of age, the satellite destroying missile system raised eyebrows about growing military might, the huge Sino-US trade imbalances is shaking up the World Financial order and the rising Chinese dragon has yet not proclaimed its rightful position in the world order.

Chinese goods have been suspect earlier too, but the sudden focus on varied goods being considered short on quality controls, particularly with US regulators, is bound to transcend the issue and reflect political posturing about dominance in the world trade order.