Product Liability

Overview

"Product liability" in China spans two related but distinct bodies of law that overseas parties often conflate:

• Contractual quality liability — where goods fail to meet the contract's specifications, quality standards, or sample. This is a breach-of-contract claim between buyer and seller (see our Breach of Contract page).
• Product (tort) liability — where a defective product causes death, injury, or property damage. This is a strict-liability claim under the Civil Code (Book 7, Tort Liability) and the Product Quality Law (产品质量法), and can be brought by the end user against the manufacturer or the seller.

The distinction matters because the parties, burdens of proof, and remedies differ. For a foreign buyer sourcing from China, the contractual route is usually the primary one; for a foreign seller whose product enters China, the tort route is what you must defend against.

The legal framework

• Civil Code — tort liability for defective products is strict: the manufacturer or seller is liable for harm caused by a product defect, without proof of fault.
• Product Quality Law — defines "defect" and sets out the rules for product quality supervision and liability.
• Consumer Protection Law — adds consumer remedies, including punitive damages (up to three times the price, or ten times for food where there is knowing non-compliance).
• Defective Product Recall Measures and sectoral rules — establishing the recall (缺陷产品召回) system for defective and dangerous products.
• Product standards and CCC — many products require mandatory national standards (GB) and China Compulsory Certification (CCC) before sale in China.

Defect vs. non-conformity — why it matters

• Quality non-conformity — goods don't match the contract, the sample, or the agreed standard. Remedy: repair, replacement, price reduction, or damages under the contract. No injury is required.
• Defect — the product poses an unreasonable danger to person or property (a design, manufacturing, or warning/instruction defect). Remedy: strict tort liability for the resulting harm.

Many international disputes are really quality non-conformity disputes dressed up as "product liability." Getting the characterisation right drives the entire strategy.

Common scenarios

• Quality claims by overseas buyers — goods that fail specification, arrive damaged, or are misrepresented in material or grade.
• Defective-product injury — an end user in China injured by a defective product, suing the manufacturer or importer.
• Recalls — a regulator or the manufacturer initiates a recall of defective goods, with knock-on contract and liability consequences.
• Standards / certification failures — products sold without required CCC or GB compliance, leading to seizure, fines, or recall.

What you need to prove (and defend)

For a contractual quality claim, the buyer typically must show the contract terms or standard, the non-conformity (ideally via an independent inspection), and the loss. For a tort claim, the injured party must show a defect, harm, and a causal link between them.

On the defence side, a manufacturer can escape tort liability by showing the defect did not exist when the product left its control, or that the victim's own misuse caused the harm.

Evidence that matters

• Contract, specifications, and approved sample or "golden sample."
• Independent third-party inspection and testing reports (SGS, BV, TÜV, Intertek, or a Chinese-accredited lab).
• Records of acceptance, rejection, and any defect notifications — timing is critical.
• Certificates (CCC, CE, RoHS) and their verification.
• For injury cases: medical records, the product itself, and proof of purchase.

Process and practical points

1. Notify and preserve — give written notice of the defect promptly and preserve samples and evidence; delay can waive or weaken rights.
2. Inspect and test — obtain an independent inspection before goods are resold or altered.
3. Negotiate — many quality claims resolve through replacement, repair, or price adjustment.
4. Litigate or arbitrate — pursue the contract or tort claim in the agreed forum; consider interim measures to freeze the counterparty's assets.

For overseas buyers, the practical lesson is to build quality into the deal: precise specifications, an agreed inspection standard (such as AQL), a warranty and replacement mechanism, and staged payment tied to inspection — rather than relying on after-the-fact liability.