Review № 12 of Chinese Antitrust News from the Experts of the BRICS Competition Centre
- Annual report on antitrust regulation for 2023
- Draft “Guidelines for the verification of horizontal mergers of business entities”
- China and Australia signed a document on cooperation in market surveillance
- China launches anti-dumping investigation into EU pork
- WM Motor will pay Geely a record $88 million for theft of intellectual property
- The number of Chinese companies in the field of AI exceeded 4.5 thousand
Annual report on antitrust regulation for 2023
On June 18th, SAMR published its annual report on antitrust enforcement in 2023. Previously, its results were summed up in February at the All-China meeting on anti-monopoly work and have now been recorded in writing.
The report provides an overview of the year's work, including market surveillance and enforcement results, fair competition advocacy efforts, international exchanges, analysis of field performance, and a timeline of events.
The report notes that in 2023, 27 cases of anti-competitive agreements and abuse of dominant position were considered (penalties and fines amounted to ≈$300 million), as well as 39 cases of abuse of administrative powers to the detriment of competition. Particular attention was paid to the pharmaceutical sector and primarily to the active pharmaceutical ingredients (API) industry, which accounted for approximately 81.8% of the total volume of penalties and fines.
Draft “Guidelines for the verification of horizontal mergers of business entities”
On June 17th, SAMR published draft “Guidelines for the Review of Horizontal Mergers of Business Entities.” The collection of public comments will last until July 6th.
According to the document, changes in market share indicators and the level of its concentration should serve as a signal for verification, since it is control over their dynamics that is important for regulators when assessing the level of competition. Operators with a combined market share of more than 50% may face tougher conditions and restrictions. The draft guidance contains specific criteria for determining the level of market concentration and provides a comparative analysis with similar indicators in the EU and the US.
China and Australia signed a document on cooperation in market surveillance
Following the first official visit of Chinese Prime Minister Li Qiang to Australia, the joint statement of the parties included the signing of four cooperation agreements between SAMR and relevant Australian departments. Among the documents signed is a Memorandum of Understanding and Cooperation in the Field of Competition. SAMR intends to follow the course outlined at the high-level meeting, promote China-Australia exchanges and cooperation in the fields of food safety, competition, standardization and measurement, and deepen bilateral mutually beneficial cooperation.
Source: SAMR
China launches anti-dumping investigation into EU pork
The Ministry of Commerce of the People's Republic of China announced that the China Livestock Association has filed an application for investigation into the import of frozen and chilled pork and meat products. The investigation will last until June 17th, 2025, but may be extended for another six months.
China is the largest market for European pork producers. The decision by the Chinese Ministry of Commerce is likely in response to investigations carried out by European regulators in relation to some Chinese industries.
On the eve of the trade conflict with the EU, Beijing lifted the ban on pork imports from Russia, which had been in force since 2008. Russian producers hope to increase supplies to 10% of total Chinese meat imports.
Sources: Mofcom.gov, Сaixin Global
WM Motor will pay Geely a record $88 million for theft of intellectual property
China's Supreme Court has ruled that electric vehicle startup WM Motor Technology must pay auto giant Geely a record $88 million fine for violating trade secrets and stealing technology.
In 2016, approximately 40 employees of Geely Gaoyuan Automobile Industry transferred to Weima Automotive Technology Group or its subsidiaries. Two years later, the company discovered that WM Motor had applied for 12 model patents based on stolen technology and went to court.
Sources: Yicai Global
The number of Chinese companies in the field of AI exceeded 4.5 thousand
The number of companies involved in artificial intelligence in China has exceeded 4.5 thousand. This was announced by Deputy Minister of Industry and Information Technology of the People's Republic of China Shan Zhongde at the opening ceremony of the exhibition of intelligent technologies. The exhibition takes place in Tianjin from June 20th to 23. 550 companies from around the world are participating, including Huawei, Alibaba, Tencent, Tesla and Dell.
In 2023, the total value of key AI industries in China exceeded 578 billion yuan ($81 billion), up 14% year-on-year.
Source: Xinhua
