Review №32 of Chinese Antitrust News from the Experts of the BRICS Competition Centre
- The Law “On Combating Unfair Competition” Updated
- Rules for the Certification of Cross-Border Data Transfer Operators Published
- Draft New Regulations on Food Delivery Released
- International Initiative on the Protection of Trade Secrets Introduced
- Conference on the Informatization of Market Supervision
The Law “On Combating Unfair Competition” Updated
On October 15, the new version of the Law on Combating Unfair Competition came into force. This is the third amendment to the law originally enacted in 1993. The updated text introduces the following key changes:
- Targeted elimination of “involutionary” or excessive competition (neijuan), especially in the internet economy — for example, a ban on forced price undercutting on platforms;
- Strengthened protection of small and medium-sized enterprises (SMEs) to offset their competitive disadvantages caused by unequal access to resources and opportunities (for instance, large companies and other market entities are prohibited from abusing their financial, technological, or commercial advantages to impose clearly unreasonable transaction terms on SMEs);
- Laying the foundation for combating unfair competition in the digital economy (including provisions prohibiting the unlawful acquisition and use of data, malicious online activities, and an expanded list of false or misleading advertising practices).
Source: SAMR
Rules for the Certification of Cross-Border Data Transfer Operators Published
A document jointly developed by the Cyberspace Administration of China (CAC) and SAMR will enter into force on January 1, 2026. The rules regulate the certification process for personal data processors intending to export data outside China. Such processors must obtain a certificate from an authorized institution confirming that the export complies with all applicable laws and regulations..
The procedure applies to data processors that do not operate key information infrastructure and that export personal data relating to 100,000 to 1 million individuals in total (or up to 10,000 individuals in the case of sensitive data).
In 2022, the European Union issued Guidelines No. 07/2022 on Certification as a Tool for Cross-Border Data Transfers. In China, certification likewise serves as a practical mechanism for cross-border personal data transfers. While China and European countries have not yet reached a comprehensive data protection agreement, certification provides an effective channel for mutual exchange and compliance.
Draft New Regulations on Food Delivery Released
SAMR has published for public consultation a Draft Regulation on the Responsibility of Platforms and Suppliers of Goods and Services for Food Safety.
The draft stipulates that platforms must conduct on-site inspections of stores and catering establishments seeking to provide services on their online platforms, and must verify the authenticity of submitted information.
In response to growing consumer demand for food safety, some restaurants have already introduced live-streaming from their kitchens. The draft proposes to formalize this requirement: all restaurants must implement an “open kitchen” live-streaming system, and platforms must provide technical support for uploading, displaying, and storing video information.
Since September this year, the regulator has already taken several steps to strengthen oversight of the food delivery industry:
- Published a draft of the Basic Requirements for Regulating Online Food Delivery Platform Services, introducing standardized supervisory methods;
- Held a meeting on the sustainable development of the online food delivery industry, discussing issues of market competition, food safety, and the protection of stakeholders’ rights.
International Initiative on the Protection of Trade Secrets Introduced
The International Initiative on the Protection of Trade Secrets was presented on the sidelines of an International Seminar organized by SAMR on October 22 in Guangzhou (Southern China).
The initiative calls on all countries to uphold the principles of innovative development, fair cooperation, and mutual exchange of experience, and to jointly build a fairer, more rational, and more efficient international system for the protection of trade secrets.
Around 150 participants attended the seminar, including representatives from the intellectual property authorities of the United Kingdom, Japan, South Korea, the European Union, as well as from the World Intellectual Property Organization (WIPO) and the International Council for the Commercialization of Intellectual Property..
Source: SAMR
Conference on the Informatization of Market Supervision
From October 16 to 17, the National Conference on the Application of Scientific Tools, Technologies, and Informatization in Market Supervision was held in Hangzhouпо.
The conference highlighted steady progress in developing advanced scientific and technological achievements and promoting “smart” supervision. It also noted improvements in the structure of innovation platforms and in the professional qualifications of personnel with expertise in science, technology, and digitalization.
Participants emphasized the need to build a technologically strong nation and strengthen China’s position in cyberspace. The discussion called for coordinated scientific and technological efforts, maximizing innovation, accelerating the implementation of new technologies, and stimulating innovative activity.
Source: SAMR
