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2. Potential Liability of a US Manufacturer for Product Exported to and/or Distributed in China
If a US manufacturer plans to export and/or distribute his product in China, he has to meet the relevant national and local product standards. The scene is that the standards of most American products are even higher than the Chinese national standards. However, the Chinese law requires every packaged product shall use Chinese language on the packages or in the specifications to indicate the main features of the product. Such provisions are more essential to food, heath food, and pharmaceutical products. To many home electronic products, the law impose an obligation upon producers to offer a period of quality guarantee in which the product can be returned, repaired, replaced freely. Where a product causes personal injury or loss of property other than the product itself, approaches to settling conflict are different from that are in the US.
2.1. Approaches to the dispute solutions in China
Under the Consumer Protection Law, a dispute arising between a consumer and producer or seller may be resolved through the following approaches:
§ Amicable settlement between parties;
§ Mediation through a Consumer Association;
§ Complaining to the relevant administrative authority;
§ Arbitration based on the arbitration agreement;
§ Litigation
Whatever institution involved, every dispute can be settled before a Court makes a binding judgement. Most small-claims cases are handled in Consumer Associations throughout cities in China. The Consumer Associations are voluntary and non-profitable organizations. Although they only accept cases submitted by consumers, they may put pressures upon all business operators whereby carrying out the following statutory functions:
§ Providing information and advice services for consumers;
§ Participating in administrative works including supervision and inspection of commodities;
§ Reporting to, inquiring of or making suggestions to relevant administrations on issues concerning the legal rights and interests of consumers;
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