This seems to be a promotion of SGS's services. There are numerous companies in China doing pre-shippment inspection, ITS (nterek), Lloyds, BSI, TUV, BV etc they are just the European bodies in China but i am sure there are many Chinese organisations such as CQC.
Nearly 20 yrs doing factory inspections in Asia, EU, USA. I have been living past 2 yrs in China to be closer to my work and i spend probably 50% my time in Japan. If you are a qualifed inspector you lead the inspection not the factory if the factory is leading and controlling your audit then you not doing your job right and you should not be inspector.
If you are a small buyer then i agree you need thrid parties to ensure quality of the product otherwise you may get defective products being shipped. If you are a large organisation you can fford to put people in field, Japanese being a good example. The Japanese people into suppliers and conduct their own pre-shippement inspections. For the Japanese Quality is breed into him and their culture. After the War Japan was also knocking out copied products but then developed their own technolgy and brands and some are world leading brands. Now Japanese products are known for quality. Therefore to improve quality in China it needs to come from the business focus on culture and ethics.
I go to some Chinese makers who do not just pay lip service to quality but actually do it and their products are now selling like hot cakes, $8 million turnover just on one product range in 1 year. Then i go to companies where you scratch you head wondering how they even got ISO9001 and you have to suspect it is fake.
If manufacturers in China want to increase sells and build reputation they need to shed this imagine they have got of poor quality unsafe products, i know not all makers are bad but just few makers give all makers a bad name.