Abstract Punitive damages is designed not only to compensate the victim completely but also to punish the offenders and deter them from similar But when it is settled in our legal system and social surrounding, the above functions are unimportant and even It is not salutary to establish a punitive system in product liability of our The punished guilty relevant regulations about producing, selling the fake and common products of the Criminal Law includes both acts which result in product liability and probably result in product So other laws have not to and should not punish persons who have these The enterprise who obtains the illegal sales amount that under 50,000 Yuan would be punished by the existing civil compensation system, for its loss which caused by compensating the victim subtracted from its gain is Therefore our country present legal framework repels the punitive function of punitive Furthermore, by dint of the moral damages in the present civil compensatory system, the function of compensating completely could be Obviously, constructing punitive damages to realize this function is not In our country, punitive damages in contract responsibility mainly in the interest of consumer's benefits, but it is not On one hand, because legislators traced the transact course insufficiently, the law can not protect consumer's benefit well; On the other hand, although the original intention of legislation is prevent fraud, it has encouraged another kind of fraud because of the unapt In summary, considering our surroundings of law and economy, punitive damages should not build in the systems of product liability and contract