China's quality woes appear to be spreading into textiles and apparel, with Australia becoming the second country to examine Chinese textile and apparel imports. Once again, as occurred in New Zealand, it appears that Chinese manufacturers have used formaldehyde as a glue to bond fabrics together. The danger is that formaldehyde causes cancer and skin rashes, eye and respiratory problems. Australia's Competition and Consumer Commission and the Department of Health are now testing a range of Chinese-made apparel and made-ups for residual formaldehyde content. This situation has caused two Australian importers to issue a recall of blankets imported from China due to excessive formaldehyde residue.

The Chinese government has announced a four-month long "special war" against poor product quality and supervision, an effort that is being led by Vice Premier Wu Yi. Twenty retail targets have been set that must be met by year-end.

Globecot