Product safety makes good business sense

Product safety is good not only for consumers, but also for businesses. The old mantra, "the customer is always right", certainly applies to safety. Safety sells, as a number of car manufacturers have demonstrated over the years, basing their branding not necessarily on speed or style but on safety. Safety is closely associated with quality.

As Chinese producers move rapidly up the value chain, it is increasingly important for them to enhance the safety reputation of their consumer products. I would argue that safety should be at the forefront of a company's strategy. A "safety reflex" should not simply be something which you do because the law requires you to do so but because it makes good business sense.

This is not to say that a clear and efficient regulatory product safety regime is not essential. On the contrary, as we have learnt in the EU, safety starts at home. Ensuring product safety in the domestic market acts as a springboard for exports. I intend to discuss with Chinese officials how we can further work together to encourage and instil this safety culture with the economic operators.

Safety is important, but so is the way it is achieved. Let me give a very specific example: cosmetics. In the EU we have very clear, rigorous rules on product safety. Along with that, we also have very clear rules on how this safety can be demonstrated. For instance, we have a complete ban on animal testing for cosmetics. This ban was driven by consumers; it is what they wanted, and rather than being seen by businesses as a nuisance, it should be recognized that it makes good business sense to give the customers what they want.

Last week in Brussels, I discussed with Chinese officials closer cooperation in the field of consumer protection, after which the European Commission's Directorate General for Health and Consumers and China's State Administration for Industry and Commerce issued a joined statement. The first concrete cooperation activity as a result of the discussions is taking place this week with a joint seminar on consumer dispute resolution and e-commerce in Beijing. Protecting and empowering consumers is an essential objective, particularly in China, with the tremendous development of e-commerce which sees 40,000 being transacted every single second.

My visit to China has been fruitful and I am sure that together we can strengthen cooperation to enhance product safety for the benefit of consumers and businesses alike.

The author is European commissioner for consumer policy.

(China Daily 06/28/2014 page5)