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Chinese Product Safety -- risk management practices June 19, 2008 Eugene Chen of Lovells, Shanghai Presented at Lovells, Munich Risk 1: Litigation in China •Distribution of products in China •Manufacturing in China •Long-arm jurisdiction of Chinese courts Product Liability Claims in China •Strict liability •Tort-based liability •Contract-based liability •Breach of statutory obligations Action •Deep understanding of ever-changing Chinese law •Connections within China •Think ahead, plan ahead •Be prepared to act immediately Risk 2: Product Recalls & Product Liability in China Food Toys Products Consumer Drugs Electronics Managing the Risk of Chinese Products •Careful review of importer contracts –safeguards –audit/inspection –QC procedures •Contractual provisions –indemnity –hold back –dispute resolution •Adequate insurance for importer and manufacturer •Develop crisis management strategy in China and your home country •Be aware of your regulatory obligations in China Sino-Global Legal Alliance An unparalleled footprint in China The SGLA is an innovative alliance comprised of Lovells and ten leading law firms in China. Shenyang Beijing SGLA Member firms Tianjin § Allbright Law Firm (Shanghai) Qingdao § Guangda Law Firm (Guangzhou) Shanghai § China Commercial Law Office Chengdu (Shenzhen) Wuhan Chongqing § Deheng Law Group (Qingdao and Hangzhou Jinan) Lovells offices Guangzhou § T&C Law (Hangzhou) Alliance offices Shenzhen Hong Kong § Wang, Wu, Yang & Ma Law Office (Shenyang) § Join & High (Tianjin) Each local SGLA member is a clear market leader in its own jurisdiction and was identified through a ground-breaking one-year market survey and due diligence § Solton & Partners (Chongqing) process undertaken by Lovells to identify the best Chinese law firms across all key § Dewell Law Firm (Wuhan) regions of China. § Tahota Law Firm (Chengdu) (1 July 08) Danke!.

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