I am also really saddened to hear about your experience. I run a sourcing consultancy in China and when I choose factories for my clients I have to be incredibly careful because if something goes wrong there isn't much chance of getting your money back. Next time please use a sourcing agent who has monitoring and QC capabilities in China to help you with production. It is worth it for the peace of mind.
As for your problem right now, unfortunately, there isn't much you can do without spending a lot of money. In Chinese eyes, the deal is already done. As for the shipping charges, it is important to hire your own US shipping agent (they are called freight forwarders) so that the Chinese factory cannot con you into paying more money for inferior service. In trade terms, this means that you should always buy your good FOB or EXW and pay for shipping from a separate (usually US) company. Also, you should always pay for 3rd party quality control on electronic items. It typically adds about 5% to your costs, but is worth it because you will not receive defective products.
You also might try offering to send one of the cameras back to the factory so that they can diagnose the exact problem. I know it is hard, but try to be nice about it as they have all your money now and don't have to help you.
As a last resort, you might try hiring a translator/interpreter and calling the mayor of the city where your factory was located (this might not be HK because they might have assigned your production to a smaller factory without your knowledge). The Chinese government is eager to retain their relationships with the West and this might be willing to talk to the factory on your behalf. In addition, depending on if there was any sort of return or compensation policy for defective goods in your contract, you might be able to hire a local Chinese lawyer or ask their advice if anything can be done.
Last edited by alcglobalpartners; 02-03-2010 at 05:53 AM.
Reason: misspelling
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Andrea Snavely
ALC Global Partners LLC, sourcing consultancy
Regional Manager - East Asia
www.alcglobalpartners.com