Ministry of Commerce, Provisions on Regulating Competitive Acts in the Sector of Outbound Investment and Cooperation

Applicability: Acts of unfair competition in the overseas investment cooperation sector include:

(1) using commercial bribery in an attempt to secure market trading opportunities;

(2) unfair price competition, the objective of which is to squeeze out competitors;

(3) bid collusion;

(4) denigrating the commercial reputation of competitors; and

(5) fraudulently announcing business results (Article 5).

Main contents: When an enterprise wishes to win a contract for an overseas construction project (including construction projects of PRC enterprises under an overseas investment) with a contract quotation of at least US$5 million, it must, before participating in the bidding or bid negotiations, carry out the procedures for approval for bidding on or conducting bid negotiations for the contracted overseas construction project (Article 6).

The Ministry of Commerce, in concert with relevant departments, will establish a poor integrity record system for overseas investment and cooperation to place on record overseas investment or cooperation business acts that violate these Provisions by constituting unfair competition, and circulate the same to relevant departments and agencies. An implicated enterprise shall not be eligible for relevant state support policies for three years (Article 11).

Related legislation: Measures for the Administration of Outbound Investment, Mar 16 2009, CLP 2009 No.3 p.30

clp reference:2100/13.03.18 issued:2013-03-18 effective:2013-04-18