China Passes Tort Liability Law

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Dec. 28 – China passed a tort liability law on December 26, regulating liability and compensation for injuries caused by defective products, unruly animals and collapsing buildings.

The Tort Liability Law of the People’s Republic of China, passed during the 12th Session of the Standing Committee of the 11th National People’s Congress, states that project owners and construction engineering units assume joint compensation liabilities for any injuries to other people due to the collapse of buildings, construction or other facilities. Animal breeders and animal keepers bear the responsibility for any harm caused by their animals.

The law also regulates that manufacturers are liable for damages caused by defects in their products and sellers are liable for damages attributable to their fault. If the defects are caused by the fault of third parties such as the transporter or storekeeper, manufacturers and sellers are entitled to claim for compensation from these third parties after paying the compensation amount.

The law will become effective on July 1, 2010.

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