VZCZCXRO1736
RR RUEHCN RUEHGH RUEHVC
DE RUEHGZ #0837 2060746
ZNR UUUUU ZZH
R 250746Z JUL 07
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 6302
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC

UNCLAS GUANGZHOU 000837 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD ECIN EINV PGOV CH
SUBJECT: International Standards a Challenge for Many Chinese 
Exporters 
 
 
BUSINESS-SENSITIVE 
 
¶1. (U) SUMMARY: As challenging as it may be at times for U.S. 
companies to get a grip on the changing scene here in South China in 
terms of consumer safety, it is probably a factor several times 
greater in terms of difficulty for Chinese companies wishing to 
export to the United States.  They are often confused about required 
standards, or simply lack the technical ability to conform. END 
SUMMARY 
 
Chinese Companies Struggle to Understand, 
Meet Requirements 
------------------------------------------- 
 
¶1. (U) The Guangdong WTO Affairs Consultation Service Center, an 
important source on standards for Chinese exporters, understands the 
difficulties Chinese exporters face when trying to meet overseas 
standards.  According to Deputy Director Chen Lei, many Chinese 
companies realize that competition has made it necessary to adhere 
to international standards, but they complain about the difficulty 
in meeting the requirements.  In response, the Service Center holds 
seminars and publishes journals about the most common ISO standards. 
 Government, too, has become involved.  For example, the Ministry of 
Commerce has published the "Technical Guide for Export Commodities," 
which contains information regarding standards about more than 30 
types of products. 
 
Looking Toward Europe 
--------------------- 
 
¶2. (SBU) Chen Lei noted that China has drawn on EU and U.S. 
standards when creating its own, and that developing technical 
standards was a goal set forth in the Eleventh Five Year Plan.  When 
asked which national standards were most used, Chen said EU 
standards are the most developed, and represent the future trend of 
international standards. 
 
¶3. (SBU) Chen also said that the market for certification is open to 
foreign companies and that many, such as SGS, have been active in 
the market since the 1980s and 1990s.  The Chinese government 
encourages the operation of these companies because they enable 
Chinese exporters to be certified and recognized internationally. 
 
Lack of Technical Ability Limits Chinese Compliance 
--------------------------------------------- ------ 
 
¶4. (SBU) In addition to their inability to meet international 
standards, many Chinese companies have difficulty even reaching 
Chinese standards. Chen stated that getting Chinese companies to 
meet domestic and international standards is one of the government's 
primary goals, but that most Chinese companies lack the technical 
ability to do so. 
 
Profile of an International Quality Assurance Company 
--------------------------------------------- -------- 
 
¶5. (SBU) In the absence of their own quality control unit, companies 
that export to the United States or Europe often must turn to 
international quality assurance firms like Specialized Technology 
Resources, Inc. (STR).  According to Leo Hu, from STR Shenzhen's 
marketing department, STR provides testing and quality assurance 
programs, product design evaluations, product development support, 
manufacturing and social and environmental audits, supply chain 
inspections and assessments, ISO certification, and UL regulatory 
services.  The company also offers a wide spectrum of consulting 
services, including risk management assessments for investors, 
expert witness testimony, and serving as a regulatory affairs 
liaison. 
 
¶6. (SBU) For a factory audit, STR charges between USD 600 and USD 
1600, depending on the scope of the audit and the desired 
certifications.  When performing its product safety testing role, 
STR tests both raw materials and finished products to determine 
whether international standards are met, and to ensure that the 
goods in question are safe for use by consumers. 
 
 
GOLDBERG