China’s Impressive Results in Governing Fair Competition

A more mature top-level design

The 21st meeting of the Central Commission for Comprehensively Deepening Reform of the 19th CPC Central Committee reviewed and approved the Guidelines on Strengthening Anti-Monopoly Efforts and Further Advancing the Implementation of Fair Competition Policies. These guidelines set forth the very first top-level framework for fair competition policies, providing a strong guarantee for coordinated policy implementation. The Fourth Plenary Session of the 19th CPC Central Committee proposed to "strengthen the foundational status of competition policies." This status was then placed on a legal footing in the provisions of the newly amended Anti-Monopoly Law.

Thanks to the reform of Party and state institutions, we have achieved unified competition oversight and law enforcement, and the National Anti-Monopoly Bureau has been established to provide a further boost to the professional forces in this domain. Furthermore, the State Council has established the Anti-Monopoly and Anti-Unfair Competition Commission, which has further streamlined working mechanisms and enhanced the synergy of competition regulation. 

Steady improvement of institutions and systems

We have made the market access system more equitable. By implementing unified registration management for business entities, we have ensured that businesses can participate in market competition in a timely, full, and fair manner. The rules of market competition have also been refined. To provide business entities with clear and explicit rules for guidance, we have developed a law-based anti-monopoly system, which consists of one law, one set of administrative regulations, five sets of departmental rules, and eight sets of anti-monopoly guidelines.

We have made substantive progress in implementing fair competition review nationwide, achieving full coverage across the central, provincial, municipal, and county levels. Since the implementation of this system, a total of 1.59 million new documents have been reviewed nationwide, and 4.47 million existing documents have been checked, with 90,800 documents that exclude or restrict competition being repealed or amended. This has helped effectively regulate government behavior and safeguard the market environment for fair competition.

Considerable improvement of oversight and law enforcement

We have remained committed to regulation that serves the public interest. By intensifying competition oversight and law enforcement in sectors such as public utilities, building materials, automotive production, and bulk pharmaceuticals, we have effectively protected the rights and interests of consumers. In accordance with legal provisions, we have stepped up the review of concentrations of undertakings in key areas such as biopharmaceuticals, high-end equipment manufacturing, and semiconductors, so as to guide and regulate enterprise investments and mergers, maintain sound market competition, and preserve the stability of industrial and supply chains.

To break down local protectionism and market segmentation, we have strengthened anti-monopoly law enforcement to combat the abuse of administrative powers in order to eliminate or restrict competition. For five consecutive years, we have carried out special enforcement actions against unfair competition, with a focus on rectifying disorderly competitive behavior, such as false advertising, counterfeiting intended to mislead, fake orders and ratings, and commercial defamation. Since the 18th CPC National Congress in 2012, we have, in accordance with the law, investigated and dealt with 333 cases of monopoly agreements and abuse of market dominance, concluded reviews of 5,249 cases concerning the concentration of undertakings, and investigated and handled 250,500 cases of unfair competition. These efforts have effectively put a stop to and prevented illegal competitive behaviors.

Deeper awareness across society

Comprehensive efforts have been made to communicate and interpret laws and regulations, including the Anti-Monopoly Law and the Anti-Unfair Competition Law. We have published annual reports in Chinese and English on China’s anti-monopoly and anti-unfair competition law enforcement efforts, as well as model cases. By clarifying the law through analyzing specific legal cases, we have helped heighten awareness among businesses of the need for competition compliance.

Regular events have been organized to publicize and raise awareness of fair competition, including the China Fair Competition Policy Promotion Week, the China International Forum on Fair Competition Policy, and the National Fair Competition Conference. We have also arranged special competition compliance training for government departments, business associations, and various types of enterprises and provided guidance to enterprises on strengthening their antimonopoly compliance systems and protecting business secrets. A major push has also been made to foster a culture of fair competition and encourage all of society to embrace and practice fair competition.

More institutional opening up in competitive fields

In response to economic globalization and the internationalization of corporate competition, we have remained committed to a global vision, the spirit of fairness, and the principle of fair competition and steadily pursued more international exchanges and cooperation in the area of competition. We have signed 62 documents on anti-monopoly cooperation with antitrust enforcement agencies from 35 countries and regions, including the United States and the European Union. This has resulted in greater information exchanges and stronger coordination in law-making and law enforcement. Eleven of China's bilateral and multilateral free trade agreements include chapters dedicated to the subject of competition policies. We successfully hosted the Seventh BRICS International Competition Conference and have put forward Chinese proposals and insights on improving global competition governance. Through these efforts, we have helped ensure a fairer international arena for China as it boosts its competitiveness and pursues development.

Editor: Nie Qiaoyu