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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