Tough test for Chinese electronics suppliers
(Shenzhen Daily)
Updated: 2005-04-18 16:44

More than 4,000 Chinese electronics manufacturers would face tough tests from Sony Corp as the Japanese electronics giant was adopting a new Green Partner (GP) program, the Shenzhen Economic Daily reported.

The GP program is for environmental management systems to meet more stringent environmental standards set by the European Union (EU) on waste electronics products.

These 4,000 Chinese manufacturers were suppliers to Sony Corp, among which some 1,000 were based in Shenzhen, the newspaper said. Yang Wanying, vice president of the Shenzhen Academy of Metrology and Quality Inspection, said about 3,000 companies were expected to fail Sony's new test and would drop off its supplier list.

Only those passing Sony's tough audits would remain its suppliers, Yang said at the 65th China Electronics Fair, which closed Thursday at the China Hi-Tech Fair Exhibition Center in Shenzhen.

Last year, only 30 Shenzhen Sony suppliers asked the academy for electronic product inspections, Yang said. But more than 50 had applied in the first three months of this year, he said, adding that Sony was determined to cancel supply contracts with those failing to meet its GP program.

The GP program ensures that all suppliers support Sony's environmental policies, and includes an environmental management system that employs analytical testing to ensure that certain hazardous substances are excluded.

The program comes after the EU promulgated two waste electrical appliance directives in February 2003 on Waste Electrical and Electronic Equipment (WEEE) and the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment. According to the directives, hazardous materials in electrical and electronic equipment such as lead, mercury, cadmium and chromium VI should be either immediately banned or reduced in products on the EU market.

Almost all Chinese electrical equipment fell within the scope of EU's two directives and as many companies in China, especially domestic companies, failed to meet the new requirements, China's exports to Europe would be strongly affected by the new EU laws, the newspaper said.

Statistics released by the China Electronics Import & Export Corp indicate that products falling under these two categories accounted for about 70 percent of the country's exports to the EU market, worth more than US$100 million. The export volume of these products would fall by 30 to 50 percent as a result of these two new directives.

A levy ranging from 1 to 20 euros (US$1.3-26) will be slapped on every color TV set or mobile phone exported to the EU because of the WEEE rules. The new costs would place a heavy burden on many Chinese firms, and could drive them out of the EU market, said Li Huiying, a researcher with the Sino-European Research Department of the Chinese Academy of International Trade and Economic Cooperation, a think tank of the Ministry of Commerce (MOFCOM).

Six ministries including the Ministry of Information Industry (MII), the MOFCOM and the State Environment Protection Administration (SEPA) have jointly drafted a new Management Regulation on the Recycling and Treatment of Disposed Appliances and Electronics Products, a move aimed at dealing with the mounting problem of electronic waste in China.

Yang warned that international electronics giants, such as Sony, Panasonic, Omron and Foxconn, had also begun to check their suppliers with the two directives scheduled to go into effect August 13 this year and July 1 next year, respectively.

Meanwhile, domestic electronics companies, including TCL Corp, Konka Group and Haier Group, had required a number of additional checks and encouraged their suppliers to meet the new EU environmental management rules, said Yang.

But Huang said the MII and the SEPA would help domestic companies with the research and development of alternative materials to meet the EU's new standards, probably by establishing a fund.

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