China tort law to take effect Thursday

China will have a new personal injury and product liability law starting Thursday, allowing them to claim potentially unlimited punitive damages against companies that harm them, the Financial Times reported. The new tort law is expected to spark a surge in claims, and will also give people in China the ability to sue for mental distress, environmental harm and even damage to their reputations online. Legal experts said the move, along with the passage of a labor contract law two years ago, will encourage a culture of individual rights and could act as a safety valve for pressures on the political system. Other analysts aren’t as optimistic, as courts are expected to continue to limit damage awards and China’s politicians will continue to decide which disputes go to court.