Companies should recall products immediately if there is a defect which threatens people's health and lives, according to a draft law submitted to the State Council, the country's Cabinet, Wednesday.
If approved, it would be the country's first law on product recall.
The draft, by the General Administration of Quality Supervision, Inspection and Quarantine, contains seven chapters and 63 articles.
It clarifies how investigations are conducted, defects confirmed, recall procedures, responsibilities of manufacturers and the government's role in supervision.
"Producers should immediately cease production and sales of defective products and recall these products upon confirmation of defects," the draft law states.
Defective products and any accidents they cause should be reported to local quality watchdogs. According to the draft, any concealment or false reporting of defects is prohibited.
Violators could face fines between 200,000 and 500,000 yuan (74,530 U.S. dollars). Criminal punishment would be imposed if possible.
The draft does not apply to medicine and military products "as the risks of drug defects is more serious and frequent."
The Food Safety Law, promulgated earlier this year, included provisions about food recalls.
The public is invited to comment on the draft regulation any time before May 26 via online postings, email or letters. The draft can be found on the official website of the Legislative Affairs Office of the State Council, or www.ccgp.gov.cn.