Recent Developments in China, the US and Europe
Edited by Michael Faure and Xinzhu Zhang
Chapter 6: Administrative Monopolies, State Aid, Barriers to Entry and Market Integration: Challenges for the Chinese Anti-Monopoly Law
Stefan Weishaar1 6.1 INTRODUCTION The new Chinese anti-monopoly regime is taking shape. The law regulating this field entered into force on 1 August 2008. In light of the long laborious history of the Chinese Anti-Monopoly Law2 this constitutes a remarkable success. Over the past decade several drafts of a competition law have been prepared and debated. Earlier drafts also contained prohibitions on cartels, trusts, monopolistic practices and restricting competition and would have complemented the Anti-Unfair Competition law.3 The law has been enacted to guard against monopolistic conduct, to safeguard and promote the order of market competition, improve economic efficiency, protect consumer and public interests, and to promote the healthy development of the socialist market economy.4 Its creation constitutes a milestone in China’s movement towards a more marketoriented socialist economy. It may be expected that the strengthening of competition will not only lead to increased levels of welfare for the public at large but at the same time work towards a stronger legal 5 and economic integration. The Chinese economy has been showing impressive growth rates for decades. Nevertheless it has been suggested that the economic system is fragmented. Economic theory suggests that the linking of similar regional markets can lead to a reinvigoration of economic growth – something that may be of particular interest during a major world economic slowdown. Despite the lack of data suggesting the magnitude and gravity of the economic fragmentation in China, it is interesting to observe that the interrelationship between the working of the national economy...
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