From toys to toothpastes to tires, the US Consumer Product Safety Commission issued a record number of product recalls in 2007. Over half of these recalls were for products made in China, whose imports have nearly quadrupled over the last decade.
Advisen issued a report today detailing the scope of the risk for insurance professionals assessing their exposure - many broker or underwrite clients doing business in China.
In 2006, trade with China totaled $288 billion with at least 460 of the Fortune 500 companies conducting business in China.
The rapid expansion of China into the global export market has also exposed grave regulatory flaws that have resulted in a surge of high-profile recalls and over 100 lawsuits filed thus far against Americans companies that do business in China.
American companies and consumers have very few avenues of legal recourse against Chinese manufacturers; over 90% of lawsuits filed against a Chinese company never reach a jury.
For more information on the report, contact me or click here.