Under the new law, when
accidents occur between
pedestrians or non-motorised
vehicles and motor vehicles, except for the case where the pedestrian or the non-motorised vehicle deliberately causes the incident, the motorist must always bear responsibility. Responsibility for the motorist is reduced if the pedestrian or non-motorised side violated
traffic laws.
The new law enforces a
vehicle insurance system. Insurance on motor vehicles is now compulsory instead of voluntary.
It abolished a previous regulation which banned holders of
driver's licences of the PRC driving rights on
expressways until one year after they had held the licence.
Expressway
speed limits were increased from 110 km/h to 120 km/h.
Even harsher
penalties were put in place for
drunk driving and driving by people who did not hold a valid driver's licence, or drove a vehicle without licence plates.
Cases where drivers were speeding 50% in excess of the applicable
speed limit will result in the revocation of the
driver's licence.
The penalty for
hit-and-run accidents is permanent revocation of one's driver's licence.
The pre-existing
point system for penalties was integrated into the new law.
Penalties are now higher, from the former
RMB 200 up to RMB 2000. Also, provinces, municipalities and autonomous regions can only enact specific penalties within the given range. Previously, the nationwide maximum penalty was RMB 200, but areas like
Beijing and
Kunming had enacted laws mandating penalties in the thousands of RMB.
Beijing's own "implementation procedures" of the new traffic law was passed on October 22, 2004, after being the target of heavy controversy over the responsibilities of vehicle drivers and pedestrians, and a regulation limiting the lanes that can be used by novice drivers. These take effect on January 1, 2005.
According to
Xinhua News Agency, "police officers are also reluctant to pull over drivers of military vehicles even if the drivers are breaking the law".[1] According to the People's Daily, Chinese army and police seized thousands of fake military license plates and IDs.[2]