Mattel Apologizes to China

Sources: Mattel Recalls Millions of Chinese-Made Toys, Mattel Apologizes to China for Recall, Mattel Apologizes to "the Chinese People"

Mattel recently issued a public apology to China for damaging China’s reputations after a series of massive recalls of toys made by Chinese manufacturers. Just in the past month and a half, Mattel has recalled over twenty million Chinese-made toys, mostly because of high levels of lead in the paint. The use of lead paint in toys has been banned in the U.S. for thirty years because if it toxic if ingested. The recalls have created negative associations with anything manufactured in China. Mattel admitted that the majority of recalled products were the unfortunate consequence of a flaw in Mattel’s design rather than a flaw in China’s manufacturing. Thus, Mattel has taken full responsibility for the recalls.

Mattel’s apology to China was essential to their business since the company has been utilizing Chinese manufacturers for over sixty percent of its products for the last twenty-five years.

Questions:

Do you think these recalls will have a dampening effect on China’s growth despite Mattel’s public apology?

Will this affect China’s outsourcing relationships with other countries?