Review № 3 of Chinese Antitrust News from the Experts of the BRICS Competition Centre
- China imposes retaliatory tariffs on American goods
- China initiates WTO case against new US tariffs
- SAMR launches antitrust investigation into Google
- Zhejiang Institute of Competition and Antitrust Regulation established
- Rumors of antitrust investigations against Nvidia and Intel
- SAMR publishes statistics on mergers and acquisitions for 2024
- SAMR publishes lists of violations exempt from punishment for first and minor violations
- China's Foreign Ministry responds to DeepSeek blocking
- China unveils new law on value-added tax
- China tightens regulation of micro-serials
- China's Ministry of Commerce responds to suspension and resumption of acceptance of parcels from China to the US
China imposes retaliatory tariffs on American goods
On February 4, 2025, the National Tariff and Charge Commission under the State Council of the People's Republic of China announced additional tariffs on certain U.S. goods. This decision was a response to the unilateral 10% increase in U.S. tariffs on all Chinese goods from February 1, 2025, which China believes violates World Trade Organization rules and harms bilateral economic relations. Effective February 10, 2025, China will impose a 15% tariff on coal and liquefied natural gas imports, and a 10% tariff on crude oil, agricultural machinery, large-capacity vehicles, and pickup trucks. Existing preferential tax policies remain unchanged, and the new tariffs will not be exempted.
Source: Ministry of Finance of the People's Republic of China
China initiates WTO case against new US tariffs
China filed a formal complaint with the World Trade Organization (WTO) on February 5, 2025, challenging the new 10% U.S. tariffs on Chinese goods. Beijing claims that the measures violate U.S. obligations under GATT 1994 and are discriminatory. The tariffs were imposed by an executive order by President Donald Trump on February 1, 2025, as part of a crackdown on synthetic opioids. China is seeking consultations with the U.S. under the WTO's dispute settlement mechanism.
Source: WTO
SAMR launches antitrust investigation into Google
On February 5, 2025, SAMR announced an antitrust investigation against Google for allegedly violating Chinese antitrust laws.
Google has a limited presence in the Chinese market, as it has not provided internet search services in China since 2010. This antitrust investigation may be related to Google's Android operating system business. About 70% of all smartphones in the world are produced by Chinese mobile phone makers, and most of them run Google's Android. The investigation focuses on the dominant position of the Android operating system and its impact on Chinese smartphone makers such as Oppo and Xiaomi.
According to Chinese experts, Google has fallen into a "monopoly quagmire" in recent years and has often been investigated by antitrust authorities in various countries (in the US, Europe, Japan, and South Korea).
Sources: SAMR 1, SAMR 2, WeChat
Zhejiang Institute of Competition and Antitrust Regulation established
The Zhejiang Institute of Fair Competition Policy and Antitrust Regulation has opened in Zhejiang Province, the engine of China’s economy and home to the headquarters of tech giant Alibaba. The institute was established on the joint initiative of the Zhejiang Provincial Market Regulatory Authority and the Zhejiang University of Technology. Drawing on the founders’ experience in law, economics, management, information science, and other disciplines, the institute will focus on theoretical and practical issues that need to be addressed in building fair competition policy and the antitrust system. The institute’s ambition is to become a world-renowned decision-making center, a center for communication and cooperation, and a center for the integration of industry and education.
Source: SAMR
Rumors of antitrust investigations against Nvidia and Intel
On February 4, the same day China announced an antitrust investigation into Google, the Financial Times reported that China had reopened an antitrust investigation into Nvidia and was considering a new probe into Intel. Analysts speculated that these moves could be retaliatory measures against the widespread US tax hikes on China. In response to the rumors, Chinese Foreign Ministry spokesman Lin Jian denied any knowledge of the situation and recommended contacting the relevant Chinese authorities.
SAMR publishes statistics on mergers and acquisitions for 2024
On February 7, 2025, SAMR reported that 643 operator concentration cases were reviewed in 2024. Of these, 623 cases were approved without conditions, 19 applications were withdrawn by the applicants, and one case (JX Metals Corporation's acquisition of Tatsuta Electric Wire and Cable) was approved with additional restrictive conditions.
● Most of the cases reviewed (566, or about 91%) were simplified and completed at the preliminary review stage (within 30 days of filing).
● The total transaction amount was about RMB 2.3 trillion. Transactions worth RMB 1 billion or more accounted for 427 cases (about 69%), of which 52 transactions exceeded RMB 10 billion, and the largest reached RMB 110 billion.
● Domestic companies participated in 356 cases (about 57%), foreign companies in 183 cases (about 29%), and joint ventures in 85 cases (about 14%).
● State-owned enterprises participated in 335 cases (about 54%), and private enterprises in 246 cases (about 39%). Joint transactions between state-owned and private enterprises accounted for 171 cases, which is 70% of the total number of transactions involving private companies.
● The largest number of transactions (213, or about 34%) were in the manufacturing industry. Other active industries include electricity, gas, and water supply and production, wholesale and retail trade, finance, transportation, real estate, information technology, and mining.
Source: SAMR
SAMR publishes lists of violations exempt from punishment for first and minor violations
On February 7, 2025, SAMR issued two documents: the “List of Administrative Offenses Exempt from Punishment for the First Offense (Part I)” and the “List of Minor Administrative Offenses Not Subject to Punishment (Part I)”. These lists aim to address the problems of excessive punishment for minor offenses and inconsistencies in the application of punishments for similar cases.
A total of 12 types of offenses are included in the lists, of which 8 are “first offenses” that did not cause serious consequences and were promptly corrected, and 4 are minor offenses that did not cause harm and were also promptly corrected.
SAMR emphasizes the importance of lawful administration, combining punishment and education, protecting the legal rights of citizens, strictly following procedures, and carefully defining the list of punishable acts. For violators covered by these lists, measures such as immediate cessation of illegal activities, active correction, compensation for damage to consumers, and fulfillment of product recall obligations are provided.
This initiative aims to promote the principle of “regulation in the interests of the people”, reduce penalties for minor violations, increase penalties for serious violations, and ensure fairness and order in the consumer market. It also contributes to improving the consumer environment and protecting the legitimate rights of consumers.
Source: SAMR
China's Foreign Ministry responds to DeepSeek blocking
In recent days, several countries have imposed restrictions on the use of DeepSeek, which has shaken the global tech industry, for various reasons. The program has faced blocking in the United States, Italy, India, Australia, and South Korea. In response to the bans, Chinese Foreign Ministry spokesman Guo Jiakun stressed that the Chinese government attaches great importance to protecting privacy and data security in accordance with the law, and has never required or will require companies or individuals to collect or store data in a manner that violates the law. China consistently opposes the erosion of the concept of national security and the politicization of economic, trade, science, and technology issues, and resolutely protects the legitimate rights and interests of Chinese enterprises.
Source: WeChat
China unveils new law on value-added tax
On February 5, 2025, the "Law of the People's Republic of China on Value Added Tax" was promulgated, approved by the Standing Committee of the National People's Congress on December 25, 2024. The law will take effect on January 1, 2026, and aims to improve the tax system and enhance the transparency and efficiency of tax administration. The new law clarifies taxable objects, VAT rates, and tax deduction procedures, thereby contributing to a fairer and more transparent tax environment for businesses and consumers.
Source: People's Daily
China tightens regulation of micro-series
On February 6, 2025, Chinese regulators announced that all micro-series distributed through online platforms must have a distribution license or undergo a relevant registration process before being published. Such programs must display relevant information at the beginning of the video before being released. This requirement applies to all online video platforms, mini-programs, and other channels that broadcast or promote micro-series.
Source: People's Daily
China's Ministry of Commerce responds to suspension and resumption of acceptance of parcels from China to the US
On February 4, 2025, the US administration repealed the de minimis rule, which allowed for duty-free import of packages worth up to $800. This change particularly affects Chinese companies such as Shein and Temu, which actively used this benefit to ship goods directly to US consumers. Now such packages will be subject to a 10% tariff, which may lead to higher prices and delivery delays. The US Postal Service (USPS) temporarily suspended the acceptance of packages from China and Hong Kong, but soon resumed it.
On February 7, 2025, at a press conference of the Ministry of Commerce of the PRC, a representative of the department commented on the situation with the temporary suspension and subsequent resumption of acceptance of packages from mainland China and Hong Kong to the United States. The representative noted that such actions by the United States create uncertainty in bilateral trade and harm the interests of consumers and businesses in both countries. China called on the United States to abide by the principles of a market economy and international trade rules, as well as ensure stability and predictability in trade relations.
Sources: People's Daily, The New York Times
