Business as usual

June 18, 2010 | BY

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With the new PRC Tort Liability Law coming into effect on July 1 2010, CLP contacted a number of China-based in-house counsel to find out what their thoughts were on the potential impact of the new regulation on their business. Here's what some of them had to say:

The law has added more responsibilities to a legal person, some of which may not be covered by existing insurance policy. But it is a good chance for the corporations to re-visit their SHE (safety, environmental, health) procedures and policies, to avoid any possible breach of the new law

Willie Uy, Director of Legal Affairs, Shui On Development


My concern is as with all PRC legislation: not so much what it says but how it is implemented. Local protectionism and corruption in the courts are the problems

Edward Neunuebel, General Counsel, Owens Corning


I think the new tort law (中华人民共和国侵权责任法) will have a significant financial impact for a lot of manufacturing companies, not only will they need to accrue for unexpected legal costs but their insurance premiums are sure to rise as well. Overall, from an environmental perspective I think it's a good step forward by China, as to how effective this is though in minimising environmental pollution will be up to the Court's interpretation of the new laws and how stringently they want to apply the laws

William Lee, Asia-Pacific Regional Counsel, Infor


China's Tort Liability Law (中华人民共和国侵权责任法) was promulgated in the wake of a number of heated debated tort cases. In comparison with the General Principles of the Civil Law, the Tort Liability Law is much more comprehensive. While the law does not have any direct bearing to my practice area, the principles set forth therein will definitely impact the operation of our company

Legal Counsel, agricultural products mutinational


This compilation of various bases of liability will be developed into a more practical body of law with significant impact such as in the field of environmental responsibility and certainly product liability

Director of Legal Affairs, automotive products multinational


This new law more or less summarises the practices in the past. There are not a lot of new things even though some new rights are defined in this law, such as privacy. We don't want to exaggerate the impact of this law or over-worry about it. Of course, we'll take some measures to cope with the new regulations, but as now we are operating above the law in the past, I don't think it will change our way of doing business fundamentally

Legal Director, consumer goods multinational

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