Chapter III   Crimes of Undermining Order of Socialist Market Economy

Section 1 Crimes of Manufacturing and Selling Fake and Substandard Goods

Article 140 Where a producer or seller mixes products with inferior or adulterated products or passes off fake products as genuine ones, defective products as good ones, or substandard products as quality ones, if the sales revenue reaches an amount of not less than RMB 50,000 yuan but not more than RMB 200,000 yuan, the offender shall be sentenced to fixed-term imprisonment of not more than 2 years or short-term custody, with a fine of not less than half but not more than twice the amount of the sales revenue, or shall be sentenced to a fine on the said scale only. Where the sales revenue reaches an amount of not less than RMB 200,000 yuan but not more than RMB 500,000 yuan, the offender shall be sentenced to fixed-term imprisonment of not less than 2 years but not more than 7 years, with a fine of not less than half but not more than twice the amount of the sales revenue. Where the sales revenue reaches an amount of not less than RMB 500,000 yuan but not more than RMB 2 million yuan, the offender shall be sentenced to fixed-term imprisonment of not less than 7 years, with a fine of not less than half but not more than twice the amount of the sales revenue. Where the sales revenue reaches an amount of not less than RMB 2 million yuan, the offender shall be sentenced to fixed-term imprisonment of 15 years or life imprisonment, with a fine of not less than half but not more than twice the amount of the sales revenue or confiscation of property.

Article 141 Whoever produces or sells fake medicine shall be sentenced to fixed-term imprisonment of not more than 3 years or short-term custody, and concurrently, a fine. Where any serious harm is caused to human health or there are other serious circumstances, the offender shall be sentenced to fixed-term imprisonment of not less than 3 years but not more than 10 years, and concurrently, a fine. Where it causes the death of any person or there are other especially serious circumstances, the offender shall be sentenced to fixed-term imprisonment of not less than 10 years, life imprisonment, or death, and concurrently, a fine or confiscation of property.

Where an employee of an entity dispensing medicine knowingly provides fake medicine for another person, the employee shall be punished in accordance with the provisions in the preceding paragraph.

Article 142 Whoever produces or sells substandard medicine, thereby causing serious harm to human health, shall be sentenced to fixed-term imprisonment of not less than 3 years but not more than 10 years, and concurrently, a fine. Where the consequences are especially serious, the offender shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and concurrently, a fine or confiscation of property.

Where an employee of an entity dispensing medicine knowingly provides substandard medicine for another person for use, the employee shall be punished in accordance with the provisions in the preceding paragraph.

Article 142a Whoever violates the laws or regulations on medicine administration and falls under any of the following circumstances, which is likely to cause serious harm to human health, shall be sentenced to fixed-term imprisonment of not more than 3 years or short-term custody, and concurrently, a fine, or shall be sentenced to a fine only. Where any serious harm is caused to human health or there are other serious circumstances, the offender shall be sentenced to fixed-term imprisonment of not less than 3 years but not more than 7 years, and concurrently, a fine:

(1) producing or selling the medicine which is prohibited from use by the medical products administration under the State Council;

(2) producing or importing medicine without obtaining relevant approval documents, or knowingly selling such medicine;

(3) applying for medicine registration by providing fake certificates, data, materials, or samples, or by any other deceptive means; or

(4) fabricating production or inspection records.

Whoever commits a crime as prescribed in the preceding paragraph, which concurrently constitutes another crime provided in Article 141 or 142 of this Law or any other crime, shall be convicted and punished in accordance with the provisions which specify a heavier punishment.

Article 143 Whoever produces or sells food that does not meet food safety standards, which is likely to cause a serious food poisoning accident or any other serious foodborne disease, shall be sentenced to fixed-term imprisonment of not more than 3 years or short-term custody, and concurrently, a fine. Where serious harm is caused to human health or there are other serious circumstances, the offender shall be sentenced to fixed-term imprisonment of not less than 3 years but not more than 7 years, and concurrently, a fine. Where the consequences are especially serious, the offender shall be sentenced to fixed-term imprisonment of not less than 7 years or life imprisonment, and concurrently, a fine or confiscation of property.

Article 144 Whoever adds toxic or harmful non-food ingredients to food that he produces or sells or whoever knowingly sells food that is mixed with such ingredients shall be sentenced to fixed-term imprisonment of not more than 5 years, and concurrently, a fine. Where serious harm is caused to human health or there are other serious circumstances, the offender shall be sentenced to fixed-term imprisonment of not less than 5 years but not more than 10 years, and concurrently, a fine. Where any death is caused or there are other especially serious circumstances, the offender shall be punished in accordance with the provisions in Article 141 of this Law.

Article 145 Whoever produces medical devices or medical hygiene products that do not meet the national or industry standards for safeguarding human health, or knowingly sells such items, which is likely to cause serious harm to human health, shall be sentenced to fixed-term imprisonment of not more than 3 years or short-term custody, with a fine of not less than half but not more than twice the amount of the sales revenue. Where serious harm is caused to human health, the offender shall be sentenced to fixed-term imprisonment of not less than 3 years but not more than 10 years, with a fine of not less than half but not more than twice the amount of the sales revenue. Where the consequences are especially serious, the offender shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, with a fine of not less than half but not more than twice the amount of the sales revenue or confiscation of property.

Article 146 Whoever produces electrical appliances, pressure ships, explosive or combustible products or other products, which do not meet the national or industry standards for protecting human or property safety, or knowingly sells such products, thereby causing serious consequences, shall be sentenced to fixed-term imprisonment of not more than 5 years, with a fine of not less than half but not more than twice the amount of the sales revenue. Where the consequences are especially serious, the offender shall be sentenced to fixed-term imprisonment of not less than 5 years, with a fine of not less than half but not more than twice the amount of the sales revenue.

Article 147 Whoever produces fake pesticides, veterinary medicine or chemical fertilizers, or knowingly sells pesticides, veterinary medicine, chemical fertilizers or seeds which are fake or are no longer effective, or passes off substandard pesticides, veterinary medicine, chemical fertilizers or seeds as quality ones, thereby causing relatively heavy losses in production, shall be sentenced to fixed-term imprisonment of not more than 3 years or short-term custody with a fine of not less than half but not more than twice the amount of the sales revenue, or shall be sentenced to a fine on the said scale only. If heavy losses in production are caused, the offender shall be sentenced to fixed-term imprisonment of not less than 3 years but not more than 7 years, with a fine of not less than half but not more than twice the amount of the sales revenue. If extremely heavy losses in production are caused, the offender shall be sentenced to fixed-term imprisonment of not less than 7 years or life imprisonment, and concurrently, a fine of not less than half but not more than twice the amount of the sales revenue or confiscation of property.

Article 148 Whoever produces cosmetics which do not meet hygiene standards, or knowingly sells such cosmetics, thereby causing serious consequences, shall be sentenced to fixed-term imprisonment of not more than 3 years or short-term custody, with a fine of not less than half but not more than twice the amount of the sales revenue, or shall be sentenced to a fine on the said scale only.

Article 149 Whoever produces or sells a product as prescribed in Articles 141 to 148 of this Section with the sales revenue standing at or exceeding RMB 50,000 yuan, which, however, does not constitute a crime under the aforementioned articles, shall be convicted and punished in accordance with the provisions in Article 140 of this Section.

Whoever commits a crime under Articles 141 to 148 of this Section by producing or selling a product as prescribed in the aforementioned articles, which concurrently constitutes another crime provided in Article 140 of this Law, shall be convicted and punished in accordance with the provisions which specify a heavier punishment.

Article 150 An entity committing a crime as prescribed in Articles 140 to 148 of this Section shall be fined, and the directly responsible persons in charge and other directly responsible persons shall be punished in accordance with the provisions in the corresponding article.