When the Olympics finally hit Beijing next year they will put China under the global spotlight.

Interest will extend far beyond the medal tables. Every aspect of the country will come under increased scrutiny from all angles – economic, political, social, environmental and ethical. It is going to be a big year for “Brand China”.

Such attention is likely to be laced with criticism and anxiety, particularly about China’s social, environmental and ethical agendas.

Whether the spotlight focuses on established issues such as the Three Gorges dam project and factory conditions, or on new areas of concern, China looks set to take a bashing.

Consumers are already uncomfortable about the country. In a survey, the safety of toys made in China scores 4.29 on a scale of 1 to 5, where 5 is “very concerned indeed”. Employees’ working conditions comes in at 4.08. In all manufacturing areas – fashion, electricals, automobiles – China is now under scrutiny.

This raises important questions for the increasing number of brands that are linked to China through their supply chains. Such companies need to start asking themselves: at what point does the association pose a risk to the brand that outweighs the cost savings of outsourcing production to the country?

The answer depends on the brand and the level of its involvement with China. And on how both China and business as a whole respond to the increasing scrutiny.

If China is able to address the issues convincingly, things will change for the better. If businesses, either individually or as a group, are able to implement audit systems backed up by credible quality marks that effectively reassure consumers, this too will make a difference.

Consumer disquietude is increasing. Brands working hard to establish their social and environmental values on other levels may need to start asking whether they can really afford to wait before making improvements on the Chinese front.

Giles Gibbons is the managing director of Good Business www.goodbusiness.co.uk

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