According to Zhu Mingxian, deputy director of the State Bureau of Quality and Technical Supervision, 78 percent of goods manufactured in China have met state quality standards during the last four years, versus 70 percent before 1995.

Sample surveys conducted by the bureau also indicate that 90 percent of products created by large state-owned enterprises passed national standards. This rate was substantially higher than the rate for goods produced by smaller firms, many of whom are engaged in counterfeiting.

With economic globalization gaining steam and China on the verge of entry into the World Trade Organization, domestic products are facing a future of intense market competition.

Lured by the huge, potential market, increasing numbers of world-class manufacturers are landing on the Chinese market with their premium brands.

At the same time, however, a growing number of Chinese enterprises are fighting their way into overseas markets to compete with global giants on their own turf.

According to Zhu, these two factors have provided domestic enterprises with the opportunity to catch up with their foreign counterparts in terms of producing quality goods.

A large number of Chinese products have now reached or approached international quality levels, Zhu claims, adding that the counterfeit or low-quality products has tarnished the image of Chinese goods.

In a bid to lead more Chinese enterprises to pay closer attention to the quality of their products, Zhu's bureau introduced a "quality inspection exemption mechanism'' last year.

According to the mechanism, products with high prestige among consumers will be exempted from any quality inspection for a limited but lengthy time span.

In early February, the bureau granted three-year exemptions to 72 brands produced by 54 companies.

In mid-March, the bureau added another 91 products to the exemption list.

According to Zhu, one thing the bureau hopes to accomplish by adopting this mechanism is the creation a favourable environment for the development of enterprises that encourages them to push forward with their brand strategy.

He said they also hope it will guide consumption and promote economic restructuring, which will eventually enable the government to focus more on products churned out by smaller enterprises.

(China Daily 03/23/2001)