Chinese Drywall Makers Won’t Compensate U.S. Homeowners

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The U.S. has failed to persuade Chinese makers of defective drywall to compensate American homeowners, in a dispute that threatens to mar strained trade ties.

The failure to persuade about 13 makers of contaminated drywall to redress American homeowners has been a stumbling block for the U.S. Consumer Product Safety Commission.

“We have not been able to get any of the Chinese manufacturers to come to the table to discuss our scientific findings and what, if any, they think their responsibility is to the American homeowner,” CPSC Chairwoman Inez Tenenbaum said. “We are still very hopeful that the Chinese companies can come to the table and let us explain what our findings are and see if they can participate in helping us make our homeowners get a remedy in getting the Chinese drywall out.”

Tenenbaum said about 4,000 homeowners had filed complaints about Chinese-made drywall, saying the material had made their homes uninhabitable because it emits a foul smell and causes appliances such as air-conditioners to fail.

The tainted drywall, which was imported to rebuild houses after Hurricane Katrina hit the southern United States in 2005, has added to increased concern about the quality of goods imported from China. In recent years, worries about the high levels of toxic substances such as lead or cadmium in toys have led to a series of large recalls.

Last March, U.S. senators pressed U.S. Trade Representative Ron Kirk to demand China pay for damage and health problems caused by contaminated drywall.

Tenenbaum said the number of products recalls from China improved markedly in 2010. The number of product recalls in 2010 dropped to 220, from 346 in 2008. Slightly more than half of U.S. product recalls come from China.

Only one company, Germany’s Knauf Plasterboard (Tianjin) has agreed to remove the drywall and rewire 300 homes in a pilot program. The program excludes more than 5,000 homes tainted with drywall from other Chinese manufacturers. Lennar Corp., the third-biggest U.S. homebuilder, set aside millions of dollars to cover claims against it for the use of faulty Chinese drywall.