Legal basis: People's Republic of China (PRC) Law on Work Safety.
Article 2 This Law is applicable to the safety production, supervision and management of units engaged in production and business operation within the territory of People's Republic of China (PRC) (hereinafter referred to as production and business operation units); Where relevant laws and administrative regulations have other provisions on fire safety and road traffic safety, railway traffic safety, water traffic safety, civil aviation safety, nuclear and radiation safety and special equipment safety, such provisions shall prevail.
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.