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2. Save time to adapt to the Chinese administrations through Chinese partners
3. Less restriction on the sector of investment
c. Representative Office
1. Not allowed engaging direct profit-making activities.
2. Assisting parent company to enforce management and control upon domestic distributors.
3. Collecting information.
3.2. Risk Control
1. Apply and use health label, environment label, and standard label.
2. Write exemption clauses into distribution agreements.
3. Choose qualified partners bearing relevant qualifications and labels.
4. Write exemption clauses into trademark license agreements.
5. Use Chinese language on packages and specifications.
6. Product liability insurance and third party’s liability insurance.
7. Assess the national and local quality standards, and choose the higher standards.
4. The Future of Product Liability Law in China
4.1. Problem needs to be resolved
As that has been mentioned above, product liability law in China is somewhat a hybrid, which is mainly an administrative law combined with civil law provisions, a legal mechanism designed for public rights combined with private right provisions, an administrative liability institution combined with civil liability rules, and a civil liability system consists of non-clarified fault-based liability and strict liability. The bigger trouble could be breach of administrative laws rather than civil liability. Although the law provides a statutory definition for ‘product’, the definition cannot cover raw material and some agricultural products. To what extent the strict liability can be applied is still unclear. Administrations in some regions may abuse their power in administrative intervention. National, local, or industrial association standards may be lower than those producers’ own standards. Label mechanism may not be consistent with similar system in the international level.
4.2. Reform and Legislation
Any legal reform in China may not be operated independently. The product liability law has been influenced by the enhancement of consumer protection. The significant progress in this area should be that the public has been well aware of their rights in seeking legal protection, even though the law has not offer a perfect protection system. The sum of damages has been gradually increased over the past decades, and this trend will remain in the future.
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