Stung by consumer backlash and stiffer penalties for piracy, counterfeiting and contamination, China is working hard to overcome its reputation for poor quality. Scandals involving contaminated food and drugs, and toys tainted by lead paint, have made quality a Chinese government priority.

Although the government is building stronger regulatory agencies and writing tougher standards, spotty enforcement means quality will need to be addressed both by Chinese suppliers and foreign buyers. The challenge for Chinese manufacturers is how to invest in quality control and processes without losing their advantage as a low-cost producer. For their foreign partners, the challenge seems simpler: How to set and enforce effective quality benchmarks.

In this article, part of a special report on Chinese manufacturing, experts from the Boston Consulting Group (BCG) and Wharton examine how quality standards are being introduced and how China's manufacturers and their foreign business partners might meet those goals.