Product Liability

A Chinese couple sued an auto manufacturer for 2 million yuan after their son died from head compression caused by a faulty car seat. The Shanghai court rejected their claim of a design defect and inadequate warnings, sparking online debate. The court emphasized parental responsibility for child safety. Experts highlight that parents bear the primary responsibility for ensuring their children’s safety, saying the lawsuit reflects a commitment to fairness and justice, preventing product liability from shielding parental negligence.

**Zurich China paid a landmark $40 million settlement** for a product liability claim. A US child suffered permanent injuries in 2022 after swallowing a button battery from a defective Chinese-manufactured air conditioner remote insured by Zurich. As the excess layer insurer, Zurich settled the original $125.2M lawsuit to avoid a potentially higher US jury verdict. Completed in June 2025 (~¥141M), the payment impacted profits but left the insurer financially sound. This record settlement starkly highlights the catastrophic liability risks in markets like the US and the need for robust safety and tailored insurance for exporters.