China anti-monopoly law

China anti-monopoly law - LI & FUNG RESEARCH CENTRE China...

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Li & Fung Research Centre Member of the Li & Fung Group China Distribution & Trading Issue 46 September 2007 IN THIS ISSUE : Li & Fung Research Centre 13/F, LiFung Centre 2 On Ping Street Shatin, Hong Kong Tel: (852) 2635 5563 Fax: (852) 2635 1598 E-mail: [email protected] http://www.lifunggroup.com/ China’ s first Anti-monopoly Law The National People’s Congress of China passed the country’s first Anti- monopoly Law ( ) on 30 August 2007, nearly 14 years after it was first proposed. The Law aims at creating an economic climate favoring fair competition and weeding out monopolistic practices. As such, economic efficiency will be improved and the public interest will be better protected. The Law will come into effect on 1 August 2008. Before the promulgation of the Law, China did not have a unified anti-monopoly law, but had scattered rules and regulations dealing with the issues. Examples are Law against Unfair Competition, Price Law, Bid and Tender Law and other departmental rules. To better enforce the Law, an Anti-monopoly Committee ( ) will be set up by the State Council to organize, coordinate and guide the anti- monopoly work. The State Council will also appoint departments to undertake enforcement. This paper presents the highlights and analysis of the Anti-monopoly Law. 1. Forbid market monopolistic conducts The Law strictly prohibited market monopolistic conducts, which are defined as: (1) Monopoly agreements (2) Abuse of dominant market position (3) Concentrations which may have the effect of eliminating or restricting competition (1) Monopoly agreements “Article 13 – Monopoly agreements,” in this Law, refer to agreements, decisions or other concerted behavior that eliminates or restricts competition” As stipulated in the Law, competing businesses are prohibited from (1) reaching price-fixing agreements; (2) restricting the production or sales volume of the products; (3) segmenting the sales market or the raw material purchasing market; (4) restricting the purchase of new technology and facilities or the development of new technology and products; (5) jointly boycotting transactions; and (6) engaging in other monopoly agreements confirmed by the anti-monopoly enforcement authorities ( ) . 1. Forbid market 1 monopolistic conducts 2. Curb administrative 2 monopolies 3. Enforcement authority 3 4. Legal liability 3 5. Enforcement is the key 4 6. Impacts on foreign 4 mergers and acquisitions LI & FUNG RESEARCH CENTRE
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China Distribution & Trading Issue 46 September 2007 2 Li & Fung Research Centre Member of the Li & Fung Group
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This note was uploaded on 04/21/2011 for the course ECON 1001 taught by Professor S.c during the Fall '10 term at HKU.

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China anti-monopoly law - LI & FUNG RESEARCH CENTRE China...

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