Analysis of the Concept of Concentration in the Chinese Anti-monopoly Law

Zhan Hao
Grandall Legal Group (Beijing)
[email protected]

It is difficult to overstate the importance of concentration control regulations in the broader context of theAnti-Monopoly Law (AML)(反垄断法). No area of anti-monopoly enforcement commands closer scrutiny or arouses more impassioned debate. In fact, creating a proper definition for concentration was the most vigorously contested issue during the drafting of the new AML.

In the past, forms of concentration such as merger, acquisition, combination, consolidation, and takeover were regulated by the General Principles of Civil Law, the Company Law(公司法), the Bankruptcy Law(破产法), Explanations by the Supreme Court of China regarding Enterprise Reconstruction, and additional regulations of the Ministry of Commerce. There was no official statutory definition of concentration and the applicable rules created by different regulatory bodies were unclear and not properly coordinated leaving a large gap for differing interpretations of the law.