China: Product Liability & Safety

The Tort Liability Law ("the Law") of the People's Republic of China (PRC) 2009 takes effect on 1 July 2010. Those doing business in China will need to understand the potential for increased liability and the associated need to expand insurance coverage.

The Chinese General Administration of Quality Supervision, Inspection and Quarantine ("AQSIQ") published the Rules of Administration and Supervision on Production of Food Additives ("Rules") on 4 April 2010 (to be entered into force on 1 June 2010).

Product quality, after-sales service and product liability concerns have been receiving increased attention in the PRC. High profile cases, such as the recent milk scandal involving Sanlu, have highlighted product liability concerns and put pressure on national and local authorities to enact legislation and streamline administrative proceedings. PRC consumers are becoming increasingly aware of their legal rights and are willing to enforce them, if necessary, through court proceedings. Generally