The Slow Boat to Antitrust Law in China: An Examination of New Regulations on Monopoly Pricing

September 02, 2003 | BY

clpstaff &clp articles

Although the government hasn't yet issued an overarching antitrust law, there are numerous regulations governing monopolies, price fixing and unfair commercial practices. The latest is a new anti-price monopoly law issued by the State Development Reform Commission.

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By Peter Neumann and Jackson Guo, Faegre & Benson, Shanghai

On June 18 2003, the newly established PRC State Development and Reform Commission (the SDRC) issued the Suppression of Acts of Price Monopoly Tentative Provisions (the Tentative Provisions), which take effect November 1 2003. According to a press release dated June 30 and posted on the SDRC's website, the Tentative Provisions are declared to be both a "preliminary exploration of antitrust legislation" and a "legal safeguard to promote market price competition". The former is probably a fair statement. But as discussed below, the Tentative Provisions are unlikely to significantly improve the competitive landscape in China.