The aim of this chapter is to analyze bank competition in China for a sample of 157 banks over the period 2004 –14. Bank competition is measured with the Lerner index. The authors obtain three main findings. First, the degree of bank competition is low in comparison to what is observed in other countries. Second, no improvement in bank competition has been observed during the last decade. Third, competition differs depending on the type of banks, with lower market power for foreign banks in comparison to banks owned by public authorities. The authors’ results therefore support the view that procompetitive policies like foreign bank entry and privatization could enhance bank competition in China.