Bhagwati on Chinese Manufacturing

Bhagwati essentially makes the argument that China's greatest strength -- i.e., manufacturing -- can easily become its greatest weakness because the Chinese system of government has no checks or safety regulations. I think this can't be emphasized enough: China is a player as long it relies on manufacturing products for foreign markets. But, if a "made in China" label gradually becomes psychologically associated with the litte posion bottle cartoon, China's economic future can't look too rosy. That said, what, other than enforcing manufacturing guidelines should China do to secure it's economic legacy? Diversify? If so, where?