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Food safety has become one of the biggest issues of concern for Chinese people since various scandals, such as tainted infant formula and cooking oil collected from sewers, were exposed by the media.

The country supplies more than 90 percent of rare earth products on the global market, but its reserves only account for about one-third of the world's total. Disorderly mining of rare earths has been blamed for environmental damage in rare-earth-rich regions across China.

But Chinese makers said their commercial success has resulted from fair competition.

Those who illegally use school buses, offer illicit school bus services or violate security management rules will be punished according to law, says the regulation, which will undergo further revision before being published.

The school bus belonged to a privately-run kindergarten and the bus driver was the kindergarten's director, according to the parents of one of the injured children.