A draft regulation does not allow owners to breed dogs unless they have a license.
The rule, which comes after at least two people were killed by dog attacks in recent months, is supposed to control the random reproduction of canines, experts said.
Wang Wu, deputy director of the dog market at the China Animal Agriculture Association, said the organization drafted the regulation, which will be submitted to the Ministry of Agriculture for approval next month.
The regulation stipulates that only certified institutions can breed dogs, and sellers of dogs must provide authorities with required certificates to show the dogs are safe and healthy.
"Random breeding is the root cause for disorder in the dog market," he said. "The new regulation will stipulate who is qualified to breed dogs and register dog breeders ... and it is expected to eliminate illegal breeding of dogs."
After the rule takes effect, newborn puppies will carry a chip, where the information of dogs is recorded, he said.
Frequent reports of large dogs attacking people in cities, causing injuries or even death, have caught nationwide attention recently.
A 3-year-old girl in Hebei province was attacked by a Tibetan mastiff raised by a shop owner when she approached the store in June. The girl, who was bitten by the large dog in the throat, died at a hospital.
In May, a 61-year-old man in Guizhou province was attacked by two dogs when he was doing morning exercises. He was dragged more than 10 meters by the dogs and died of injuries suffered during the attack. The owner of the dogs was sick and had not been feeding them, according to media reports.
Zhang Jinshuo, a researcher of animal protection at the Chinese Academy of Sciences, said the draft regulation aims to control the number of dogs, especially those more prone to attacks.
"Some types of dogs, such as the Tibetan mastiff, are not suitable to be kept in large cities that have high population density," he said.
Many dogs sold at markets are bred at private and uncertified dog houses, resulting in hybrid breeds that possess unpredictable behaviors and characteristics, he said.
Wang, with the China Animal Agriculture Association, said the draft rule emphasizes breeding pure-blood dogs.
"Hybrid dogs may be of an illusive nature and more likely to attack people," he said. "Random mating between dogs may cause inheritable diseases in puppies, making them more likely to be deserted and become strays."
Some netizens, however, doubt the regulation can be effectively carried out.
"Will the hospitals give abortions to pregnant dogs?" asked a netizen on Sina Weibo, a popular micro-blogging platform.
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