Chinese drywall enterprises facing US litigation

The US Cable News Network (CNN) this week began broadcasting a 30-second commercial in Asia emphasizing that products "Made in China" are the result of profit sharing and cooperation between parties intertwined by globalization. This commercial was developed by the Chinese Ministry of Commerce in conjunction with four Chinese trade chambers, and is considered the first government-led Chinese brand campaign. Apart from Asia, the next step is to broadcast in other major trading partner countries in North America and Europe. The commercial has attracted the attention of worldwide media regarding the "Made in China" brand, which is good, according to Shi Yaodong, deputy director general of the State Council's Development Research Center. It makes people think about recent incidents, especially the "China-made drywall" incidents that created a lot of attention in the United States.

"Toxic" Chinese drywall damages reputation of Chinese enterprises

The Chinese drywall incident began in the second half of 2008. US media reported that a number of US residents who used Chinese drywall complained of a rotten-egg odor that made occupants sick, corrosion of copper pipes and ruined TVs and air conditioners. Some homeowners suffered nosebleeds, headaches and other symptoms. The US Consumer Product Safety Commission claimed to have received more than 2,100 complaints against the quality of Chinese drywall. Some US homeowners even filed lawsuits demanding compensation from Chinese enterprises. It is estimated that the number of American families affected could reach hundreds of thousands, with approximate cost of $15 billion to $25 billion. The safety commission's investigation is reported to be the largest in history.

In May 2009, the safety commission and the US Environmental Protection Agency released a report based on drywall tests suggesting that in respect to sulfur gases, Chinese drywall showed slightly higher levels than non-China made products. However, formaldehyde and acetaldehyde were detected in both Chinese and US drywall.

Interestingly, the massive coverage from US media upon release of the above-mentioned report did not contain references to the "not exceeding specifications" nor to the "no association with health problem" but rather highlighted the "connection".

Despite a lack of sufficient evidence, the United States claimed that Chinese drywall was "toxic" and constantly "demonized" them. These complaints have damaged the reputation of Chinese enterprises and caused them to suffer from big losses. However, so far, the United States still cannot come up with convincing evidence that the Chinese drywall should be so accused.