Newsletter on Chinese Antitrust 04.08-11.10.2024 (Pt. I)

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Newsletter on Chinese Antitrust 04.08-11.10.2024 (Pt. I)

Review № 16 of Chinese Antitrust News from the Experts of the BRICS Competition Centre (Pt 1)

- 6,076 Unfair Competition Cases in 2024
- China Symposium on Market Surveillance
- Draft Antimonopoly Guidelines for the Pharmaceutical Industry
- How China Lowers Thresholds for Participation in Fair Competition
- China Files WTO Complaint Against EU Over Electric Vehicle Tariffs
- Canada Imposes 100% Tariff on Chinese Electric Vehicles
- New Form for Simplified Concentration Petition

6,076 Unfair Competition Cases in 2024

A symposium on national pricing supervision and fair competition was held in Dalian. A total of 6,076 cases of various types of unfair competition were handled nationwide, of which 2,157 cases (35.5%) involved unfair competition on the Internet.

After the symposium, SAMR Vice Director Meng Yang met with 11 suppliers of goods and services on various platforms and discussed the issues they had raised regarding prices, fees, subsidies, and unfair competition. He also addressed the issues raised to representatives of Internet platforms (Pinduoduo, Taobao, Tmall, JD.com, Douyin, Meituan, etc.) and heard their explanations.

On September 1t, the "Interim Provisions on Combating Unfair Competition on the Internet" came into effect in China. The document will promote a healthier and more regulated development of the digital economy, increase the responsibility of Internet platforms and maintain a fair order in Internet markets.

Sources: SAMR1, SAMR2

China Symposium on Market Surveillance

The All-China Symposium on Market Supervision was held in Beijing on August 21st-22nd. Participants summed up the results of the first half of 2024 and identified key areas of work for the second half of the year. The symposium aimed to strengthen the market supervision system and enhance the sustainability of economic growth.

In his working report, SAMR Chairman Luo Wen outlined the main tasks of the upcoming work, noting the need to reform the supervisory apparatus to:

  • improve work efficiency;
  • protect a fair market order;
  • enhance economic vitality;
  • streamline bureaucratic processes;

promote economic development.

Source: SAMR

Draft Antimonopoly Guidelines for the Pharmaceutical Industry

In China, a draft of the "Antitrust Guidelines for the Pharmaceutical Industry" has been published for public consultation. The document is intended to replace similar guidelines for the active pharmaceutical ingredients market and mark a new era in antitrust regulation of the pharmaceutical sector.

In China, the pharmaceutical industry is associated with a significant number of antitrust violations. In 2023, these markets accounted for 25.9% of antitrust cases and 81.8% of antitrust fines. Most violations are related to deviations in drug prices from established ones, which increases costs and violates the rights and interests of consumers.

The proposed recommendations are characterized by their universality, the ability to prevent possible violations and predictability of liability. They also emphasize the importance of supervision of all links in the production and supply chains, antitrust compliance and analysis of pharmaceutical innovations.

Source: SAMR

How China Lowers Thresholds for Participation in Fair Competition

Since the beginning of 2024, local authorities have been actively working to lower the thresholds for economic entities to participate in fair competition in the market.

One of the areas of activity is the implementation of the fair competition review system (checking laws, administrative rules and regulations for the absence of provisions that impede fair competition). As a result of these checks, 218 violations were identified in the first half of 2024 alone (101 documents were abolished, 96 were revised, and 21 were declared invalid).

Thematic antimonopoly campaigns were also carried out in socially significant markets, as a result of which:

  • 3 cases of anti-competitive practices in the public utilities sector were considered;
  • 6,076 cases of unfair competition were considered;
  • decisions were made on cases of restricting access to tenders and auctions;
  • 16 cases of abuse of administrative powers for the purpose of restricting competition were eliminated.

The authorities are also working on developing the legal basis for antitrust regulation:

  • the criteria for filing applications for economic concentration transactions have been revised;
  • the Antimonopoly Guidelines for Industry Associations, the Antimonopoly Compliance Guidelines for Business Entities and the Temporary Provisions for Combating Unfair Competition on the Internet have been published.

Source: SAMR

China Files WTO Complaint Against EU Over Electric Vehicle Tariffs

China has filed a complaint with the World Trade Organization (WTO) against the European Union's decision to impose anti-subsidy duties on Chinese electric vehicles. The purpose of the appeal is to "protect the rights and development interests" of the electric vehicle industry. According to a statement from the Chinese agency, the EU's preliminary ruling has no factual or legal basis and seriously violates WTO rules, as well as undermines global cooperation on climate change.

The EU has increased duties on electric vehicles from China to 50% since July 4, based on the results of an investigation into countering illegal subsidies. The European Commission considers the measures to be in line with WTO rules and its investigation will continue, the EU executive body said.

Source: Caixin Global

Canada Imposes 100% Tariff on Chinese Electric Vehicles

Since October 1st, the Canadian government has imposed a 100% tariff on all electric vehicles from China, including trucks, buses and special equipment. Prime Minister Justin Trudeau has previously said that Ottawa is opposing China's deliberate state policy of creating excess capacity, and these measures are aimed at protecting Canada's interests, since, according to him, China does not abide by the same rules as other countries.

China has complained to the World Trade Organization (WTO) about Canada's unilateral trade protectionism. Commenting on the Canadian side's statement, a spokesman for the Chinese Ministry of Commerce said that Canada's measures violate the principles of a market economy and fair competition, seriously damage the normal economic and trade cooperation between Chinese and Canadian enterprises, significantly affect bilateral economic and trade relations, and disrupt and distort global industrial and production chains.

The US, EU and Turkey have also announced the introduction of higher tariffs on Chinese electric vehicles. Canada will impose a 25% tariff on steel and aluminum imports from China on October 15. The country is also currently discussing additional duties on Chinese batteries and critical minerals.

Sources: Reuters, Global Times

New Form for Simplified Concentration Petition

SAMR has updated the forms of applications for economic concentration transactions subject to simplified review. The changes are aimed at simplifying bureaucratic procedures and reducing time costs for economic entities. The new version of the application contains less information and requirements, making it more practical and convenient to fill out.

Source: SAMR


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