As the Chinese economy grows and consumption rises, the potential for claims based on product defects increases. It can also be observed that more and more Chinese individuals make use of the civil law system and persist with their claims. In this regard, the Chinese authorities have strengthened the legal framework for regulating product liability requirements.
Enterprises involved in the manufacturing, distribution and sale of products in China need to understand their exposure to product liability claims. The scope of damage compensation, as well as possibilities of limitation and exclusion, are described in this report.