System under discussion would punish low-grade manufacturers

China will improve legislation to promote product quality and establish a system that subjects producers and sellers of substandard goods to punitive compensation measures.

Guidance released on Tuesday by the Central Committee of the Communist Party of China and the State Council, China's Cabinet, urged governments at all levels to make "uttermost efforts" to improve the quality of all products made in China to address supply shortages of midrange and high-end goods and services.