I've been reading a lot about product liability issues and how they can lead to lawsuits in my home country (one example is the Chinese drywall cases – highlighted in the November 2009 issue of CLP – which are now earning US litigation lawyers considerable fees). But it seems that issues such as quality control and manufacturing standards in factories belonging to my Chinese supplier are out of my reach.

How can I minimise risks in my supply chain?

The international perspective
Quality control and maintaining your company's manufacturing standards are not always out of reach when procuring products from China, as long as the foreign buyer takes some appropriate precautions.

To begin with, the supply contract should clearly set out the products' quality control requirements and the applicable manufacturing standards. China already implements national standards concerning quality control and manufacturing standards for many products; however, foreign buyers' standards are often more stringent and therefore any additional requirements need to be stipulated in order to safeguard the foreign buyer's interest. For example, if the products are to be exported to a foreign country, the supply contract should clearly refer to the applicable standards of that country.