abstract
This paper intends to analyze the classification and grade standards of gas separation and liquefaction equipment product quality that has been abolished by the Notice No. 112 issued by the Chinese State Administration of Quality Supervision. It starts with an introduction of the abolished regulation and analyses the background, reason and effects of the abolishment of the regulation. In the next part, it discusses the impact on the industry caused by the abolishment of the regulation mainly from five aspects, including enterprises, industry regulations, product quality, personnel and market. Finally, it proposes a set of reasonable opinions to optimize the industry structure and enhance the product quality guarantee.
Introduction
On October 10, 2013, the Notice No.112 issued by Chinese State Administration of Quality Supervision and Inspection, entitled Establishing the classification and grade standards of gas separation and liquefaction equipment product quality, began to be implemented nationwide. According to the regulation, enterprises should produce gas separation and liquefaction equipment products in strict accordance with the classification and grade standards, whose quality parameters should all meet the requirements set in the Regulation, making sure the valid production and use of the equipment.
Background, reason and effects of the abolishment
On August 10, 2016, the Notice No. 171 published by the Chinese State Administration of Quality Supervision and Inspection abnormally abolished the Notice No.112 and its related classification and grade standards.As for the reasons of the abolishment, this regulation was abolished because it has become a barrier to the international competition. Therefore, its reasonable to abolish the regulation and to encourage the international competition by expanding the international market share, which will help enlarge the influence and potential of Chinese enterprises in the international market.
The effect of the abolishment of the regulation has been remarkable. First of all, Chinese enterprises suffered a direct impact. The abolishment of the regulation has impacted the profit rate and production capacity of the gas separation and liquefaction equipment industry in China, making it difficult for these companies to reach expected goals. Secondly, the abolishment led to the weakening of industry regulations. Many users complained about the lower quality of the equipment and some enterprises even faked the product quality parameters, which resulted in unsafe operation. Thirdly, the product quality has been seriously impacted. Due to the lack of legal regulation, many enterprises tend to ignore product quality problems and provide substandard products, leading to quite a few violations of national laws and regulations. Fourthly, personnel began to suffer from the corresponding problems. In the absence of legal regulation, some enterprises began to ignore the laws of job security and personnel framework, leading to the uncertainty of employees’ job security and their salary requirements. Finally, the market began to suffer from great dissatisfaction. With the disruption of the supply chain, many enterprises questioned the product quality, leading to the weak acceptance of the products and the orders.
Impact on the industry
The abolishment of the regulation of product quality has caused great impact on the gas separation and liquefaction equipment industry. Firstly, enterprises in this industry have suffered from lower productivity, decreased profit rate and uncertainty in the investment of new project. Secondly, the abolishment of the regulation has weakened the industry regulation, resulting in the lower standard of the product quality and the insecurity of personnel. Thirdly, the product in this industry has lost its guarantee and therefore failed to satisfy the market demand. Fourthly, the personnel in the industry has been hurt by the lack of job security and the decreasing salary level. Fifthly, the market has suffered from the depressed market acceptance.
Conclusion
To sum up, the abolishment of the Notice No.112 has led to a great impact on enterprises, industry regulations, product quality, personnel and market in the gas separation and liquefaction equipment industry. In future, the government should strengthen the supervision on the industry while enterprises in this industry should enhance the awareness of product quality.What’s more, the personnel in this industry should pay close attention to their own job status, trying to maintain their rights and interests. In the end, the market should be educated to recognize the importance of product quality and encourage enterprises with good quality products.
