- ASCOLA Competition Law series
Edited by Josef Drexl, Warren S. Grimes, Clifford A. Jones, Rudolph J.R. Peritz and Edward T. Swaine
Chapter 8: A Comparative Look at the Competition Law Control of State-owned Enterprises and Government in China
8. A comparative look at the competition law control of stateowned enterprises and government in China Deborah Healey INTRODUCTION 1 The enactment of a competition law in China in 2007 was a notable achievement in a number of respects. The process of lawmaking was lengthy: consultations were numerous and the approach changed many times. The Anti Monopoly Law (AML), operative 1 August 2008, prohibits monopoly conduct,1 which it defines as abuse of dominance,2 monopoly agreements3 and certain mergers and acquisitions,4 and shows the influences of both European and US competition laws. The fourth category of prohibition in the AML is, however, more unusual – the law prohibits the exploitation of administrative power, known in China as ‘administrative monopoly’.5 This chapter examines the application of the AML to government bodies and operations: state-owned enterprises (SOEs) and administrative monopoly. It outlines factors that are likely to influence the way the AML will be interpreted, particularly in relation to SOEs. It considers whether the picture is any clearer after more than a year of operation. 1 2 3 4 5 See Article 3. Chapter III. Chapter II. Chapter IV. Chapter V. 122 M2697 - DREXL TEXT.indd 122 22/08/2011 07:47 Competition law control of SOEs and government in China 123 2 2.1 THE STATE AND BUSINESS IN CHINA System Reform A very brief snapshot of the historical, economic, commercial and legal factors that form the background to the AML and are likely to influence its interpretation and application generally and in...
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