China expands list of unreliable companies to include food and medical manufacturers
Workers perform quality control on a hydraulic excavator production line at Volvo Construction Equipment (China) Co., Ltd. in Shanghai, east China, Dec. 17, 2020 (Photo: Xinhua)
China has decided to put manufacturers of food and medical products who break government rules and produce substandard products on a list of “untrustworthy companies”.
In particular, companies that illegally produce or sell vaccines will be cited and sanctioned.
The Chinese government recently adopted a series of measures to better manage unreliable businesses. Compared to the previous version of the regulation, which entered into force in 2015, the new measures list specific conditions under which companies would be enrolled.
For example, food companies that do not obtain the required food operating and production licenses, or that use unapproved or hazardous substances in their products, or that do not meet food quarantine standards will be listed. .
For drug manufacturers, companies that produce or sell counterfeit or unapproved drugs, or illegally produce drugs that have strict regulatory requirements like vaccines, or those that do not obtain relevant certificates, will also be listed on the listing.
China will list companies that produce, sell, use or lease special equipment that does not have a production certificate, that has been thrown out as unnecessary, or that has been disposed of by government order.
The new measures not only widen the range of behaviors that will be clarified by regulators, but also provide more detailed explanations compared to previous measures. In the 2015 version of the law, the measures only noted that companies that make false advertisements on their products related to consumer health will be designated as untrustworthy companies.
The new measures also noted that companies on the untrusted list face penalties ranging from fines to revocation of business licenses.
The measures were also launched after the government recently revealed a number of cases in which people were selling fake coronavirus vaccines for profit. For example, several vendors were found to have used physiological saline to produce fake coronavirus vaccines in August 2020.