Scandals put paid to made-in-China multinationals?

By Joseph Chaney - Analysis

HONG KONG (Reuters) - Tainted pet food, toxic toothpaste, unsafe tires and toys -- the list goes on.

Scandals involving Chinese products in recent months have caused the "made in China" label to mean defective, dangerous, and -- in the case of poisoned cough syrup in Panama -- deadly.

Fret not, experts say, brands such as PC maker Lenovo Group Ltd.(0992.HK: Quote, Profile, Research) or Brilliance China Automotive Holdings (1114.HK: Quote, Profile, Research) (CBA.N: Quote, Profile, Research) could still capture global market share and become multinationals like Japan's Sony Corp. (6758.T: Quote, Profile, Research) or South Korea's Hyundai Motor Co. (005380.KS: Quote, Profile, Research).

However, that process could take years.

For now, image problems will force savvy players to shape up for a global marketplace and weed out weaker firms, while the massive domestic markets of the world's fourth-largest economy cushion short-term pain.

"In terms of their own management and operating policies, they will be raised to a much more international standard," said Jonathan Chajet, Asia-Pacific strategy director for Interbrand.

"It's how much (they) play 'this is from China' in the branding. That's the part that will probably be set back a little bit." ... more >>