In the PRC, product liability can arise under the PRC Contract Law, the PRC Product Quality Law, the PRC Law on the Protection on the Rights and Interests of Consumers and the PRC Tort Law. In particular, Article 111 of the PRC Contract Law entitles users and consumers to claim repair, replacement and return of products in case of defects. The above three remedies are generally called “three guarantees”.
In regard to automobiles, already since 2004 special regulations exist. The PRC Regulation on Administration of Recall of Defective Automobile Products jointly issued by the State Quality Supervision, Inspection and Quarantine Bureau (“SAQSIQ”), the State Development and Reform Commission, the Ministry of Commerce and the General Customs on March 12, 2004 imposes recall obligations for defective automobiles on automobile manufacturers or importers, if certain circumstances are fulfilled.
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