People's Republic of China (China)

• Pages: 1-111

CHAPTER 5

PEOPLE’S REPUBLIC

OF CHINA

(CHINA)

China-3

CONTENTS

A. OVERVIEW ............................................................................................................ 7

1. General Policies Underlying Competition Laws ......................................... 7

a. Introduction......................................................................................... 7

b. Principal Objectives ............................................................................ 9

c. Role of Economic Doctrines and Analysis ....................................... 10

2. Overview of Applicable Statutes ............................................................... 12

a. The AML .......................................................................................... 13

b. The Anti-Unfair Competition Law ................................................... 18

c. The Price Law ................................................................................... 19

d. Additional Laws and Regulations ..................................................... 21

3. Overview of Structure, Independence, and Jurisdiction

of Enforcement Agencies .......................................................................... 22

a. Anti-Monopoly Enforcement Authorities of the

State Council ..................................................................................... 22

b. Anti-Monopoly Commission ............................................................ 24

4. Overview of Structure, Independence, and Jurisdiction

of Judicial Authorities ............................................................................... 25

5. Additional Policy and Practical Considerations ........................................ 25

B. SUBSTANTIVE LAW ............................................................................................ 25

1. Horizontal Agreements and Practices ....................................................... 25

a. Generally........................................................................................... 25

b. Cartel Enforcement ........................................................................... 27

(1) Agreements Covered ................................................................ 27

(a) Price Restraints .................................................................. 27

(b) Output Restraints ............................................................... 29

(c) Division of Markets ........................................................... 29

(d) Restraints on Technology and Facilities ............................ 29

(e) Joint Boycotts .................................................................... 30

(f) Bid Rigging ....................................................................... 30

(g) Other Cartel Behavior........................................................ 30

(2) Enforcement Authorities .......................................................... 31

(3) Investigatory Procedures .......................................................... 31

(4) Leniency Program .................................................................... 31

(5) Penalties ................................................................................... 33

(a) Administrative Fines and Disgorgement ........................... 33

(b) Remedial Undertakings ..................................................... 34

(6) Criminal Penalties .................................................................... 35

c. Treatment of Intragroup Conspiracy or Acts

by Related Companies ...................................................................... 36

d. Other Horizontal Practices ................................................................ 36

(1) Strategic Alliances .................................................................... 36

(2) Information Exchanges and Benchmarking ............................. 36

(3) Production and Specialization Agreements .............................. 37

(4) Standard Setting ....................................................................... 37

(5) Restrictive Covenants ............................................................... 37

(6) Purchasing Agreements ............................................................ 37