THE news of the last two months has not been very kind to Chinese exports destined for the American market.

Last Tuesday's announcement by Mattel was echoed by the US government's Consumer Product Safety Commission that the company's line of "Sarge" toy cars would need to be recalled because of yet another lead paint problem related to Chinese-made toys.

This most recent issue has only increased concern within America about the safety of Chinese imports.

As concerns mount, it is becoming increasingly difficult to see that a misunderstanding exists on the part of both American and Chinese businesses regarding what is causing this spate of recalls.

Too often, in a rush to take advantage of the opportunities unfolding in China, American and European businessmen fail to take the time to learn the history of the country they express so much outward interest in. Ultimately, this translates into difficulties understanding the unique challenges Chinese businesses face.

For many interested Americans, the mistake is in seeing China's business infrastructure as largely similar to their own - only with less expensive operating costs - without a full appreciation of the challenges a Chinese business may face which American enterprises previously dealt with years ago.

Those coming from a developing economy mistakenly assume the still-developing economy knows most of what they do, when such assumptions can be the source of festering concerns regarding quality and performance.

Examples of this may very well be at the root of the recent lead paint recalls. It remains to be seen if Chinese companies willfully introduced lead paint onto the toys.

Or it may be that large American companies looked the other way suspecting that year-over-year cost savings were only going to be achieved by gutting past product quality and safety metrics, but unwilling to inquire too critically into precisely how their Chinese counterparts were going to achieve such cost improvements.

The risk premium for a developed economy versus a young and growing economy are not the same: consequently, each has a business mindset that is framed within the norms of their culture and level of development.