Improving the market
Car recalls are not new in the United States, which created the world's earliest recall system. Car recalls are in place in Europe, Japan, South Korea and other countries.
The auto industry in China saw rapid development after 2001 when China entered the World Trade Organization. Since car recall was an internal government provision formulated in 2004, it had no compulsory legal backing powerful enough as national laws and regulations do.
As China has become the world's biggest car consumer and as the domestic auto market matures, those with their eyes on purchasing a car are becoming more concerned about quality and safety.
Because of an absence of related laws and regulations, automakers often evade consumers' claims. International automakers such as Toyota and Honda even exclude the Chinese market when recalling some faulty models in other countries.
Compared with the U.S. car market, China has far fewer recalls. As incomes rise and more Chinese buy vehicles, the government has been under pressure to improve related laws and regulations.
According to the new regulation, if there is a defect that may compromise safety, the production, sale and importing of such vehicles should be suspended and the producer must initiate a recall. Producers are subject to a fine of 2-10 percent of all vehicle sales should a recall not be issued.
Qiu Baochang, head of the lawyers for the China Consumers' Association, says that a fine of 10 percent of the total value of the faulty products could spur automakers to issue more recalls.
Jia thinks that the new regulation is good news for the "guaranteed repair, replacement and return" of cars and enhances the government's ability to investigate faulty products.
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