- In line with China’s new economic growth strategy, on Sep. 20th the State Council put forward several suggestions on how to further stimulate domestic consumption. Enterprises with a track record of compliance/safety violations will be subject to more frequent inspection. Importers and international stakeholders with a history of compliance/safety violations will also be subject to possible revocation of or disruption to market access. Companies dealing in counterfeit food and drug products will be subject to severe punishments.
China’s Ticklist to Improve Domestic Product Quality and Consumer Trust
- Improve product quality standards and optimize the enterprise credit rating system.
- Encourage enterprise to formulate internal standards that are more stringent than Chinese national or industry standards.
- Draft an administrative measure to strengthening the regulation of products sold online.
China will roll out a credit system nationwide. Enterprises with a proven track record will be included into a “positive list” and subject to facilitated administrative approval aptly dubbed the “green path” (expedited market access and reduced stringency/rate of inspection/testing). Blacklisted enterprises may suffer disruptions to normal market access and will also be subject to secondary financial punishments such as more frequent sampling inspection, heightened stringency of routine surveillance and possibly an increase in testing rate.