Political advisor suggests issuing surety bonds

By Chen Xia
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Surety bonds should be promoted nationwide to address problems concerning people’s livelihood, including issues like food and drug safety, defaults on migrant worker salaries and pollution, said Han Fangming, a member of China’s top political advisory body, during the group’s annual session that began on March 3 in Beijing.

A surety bond is a promise by a guarantor to pay one party a certain amount of money if a second party fails to meet certain specified obligations, such as fulfilling the terms of a contract.

China currently has laws governing issues like food and drug safety, defaults on migrant worker salaries and pollution, but the country lacks effective law enforcement tools, Han said. In addition to being a member of the Chinese People's Political Consultative Conference, Han is also chairman of the Charhar Institute.

He suggested that government departments responsible for these issues promulgate laws requiring relevant companies to buy surety bonds from assigned insurance companies, so that when their products or services are found to be faulty or bad for the environment, consumers and victims can file complaints with the government and ask for compensation.

On March 5, Chinese Premier Li Keqiang vowed to beef up efforts to improve people's living standards and promote social development in his presentation of this year’s government work report at the third session of the 12th National People's Congress, the country’s top legislative body.

The CPPCC national committee holds a yearly meeting at the same time as the NPC. It is responsible for formulating suggestions and advice on China’s most pressing issues. Han is attending the third session of the 12th CPPCC National Committee, which will conclude on March 13.

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