Legal basis: People's Republic of China (PRC) Law on Work Safety.
Article 19 The responsibility system for production safety of production and business operation entities shall specify the responsible personnel, scope of responsibility and assessment criteria. Production and business units shall establish corresponding mechanisms, strengthen supervision and assessment of the implementation of the responsibility system for production safety, and ensure the implementation of the responsibility system for production safety.
Article 20 The capital investment necessary for the conditions of safe production that a production and business operation entity should possess shall be guaranteed by the decision-making organ, principal responsible person or individual investor of the production and business operation entity, and it shall be responsible for the consequences caused by insufficient capital investment necessary for safe production. The relevant production and business units shall, in accordance with the provisions, extract and use the expenses for safe production, which shall be used exclusively to improve the conditions for safe production. The cost of production safety shall be truthfully charged in the cost. Specific measures for the extraction, use, supervision and management of production safety expenses shall be formulated by the finance department of the State Council in conjunction with the production safety supervision and management department of the State Council in consultation with relevant departments of the State Council.