Review № 22 of Chinese Antitrust News from the Experts of the BRICS Competition Centre
- China seeks public opinion on draft amendment to pricing law
- China continues to combat involutionary competition (neijuan) in the EV sector
- SAMR held a meeting with representatives of the largest food delivery platforms
- SAMR to intensify the fight against internal involutionary competition in the EV market
- Chinese regulator suspends antitrust probe into DuPont
- JD.Com opens its first restaurant with only food delivery, pick-ups
- SAMR’s landmark decision to unwind a merger between pharmaceutical companies due to the threat to competition
- Chinese authorities fined a pharmaceutical company 37.7 million yuan for anti-competitive practices
- Five Chinese telecommunications companies fined for price-fixing
China seeks public opinion on draft amendment to pricing law
China's authorities released a draft amendment to the pricing law to solicit public opinion. The draft amendment consists of 10 provisions, further clarifying the standards for identifying unfair pricing practices and specifying the legal responsibilities for price-related violations. The first amendment was made to Article 4 of the relevant law: before the phrase “the state supports and promotes fair, open, and lawful market competition,” add “pricing is carried out under the leadership of the Communist Party of China.”
The public can log on to the official website of the National Development and Reform Commission or the website of the State Administration for Market Regulation to share their views or submit proposals until Aug. 23
China continues to combat involutionary competition (neijuan) in the EV sector
Chinese authorities have launched a large-scale campaign to bring order to the rapidly growing electric vehicle sector. On July 17, the Fourth Leading Group of the Central Committee held a meeting with representatives of BAIC Group, BYD, and the China Association of Automobile Manufacturers. A representative of the group noted that, despite some improvements in the electric vehicle market, problems such as low-price competition and false advertising still remain. He called for strengthening the regulatory framework and creating long-term control mechanisms.
On July 18, the Ministry of Industry and Information Technology, the State Development and Reform Commission, and the Market Regulation Bureau held an expanded seminar with representatives of 17 major automakers, industry associations, and local authorities. The meeting identified key tasks: strengthening supervision and inspection; improving long-term mechanisms (developing a unified national market, promoting quality improvement and modernization of the automotive industry, creating a mechanism for exchanging opinions with enterprises); introducing new standards; and strengthening self-discipline in the industry.
Source: Weixin
SAMR held a meeting with representatives of the largest food delivery platforms
SAMR met with representatives of three leading food delivery services — Meituan, Ele.me, and JD.com. The main topic of discussion was compliance with legislation and the healthy development of the industry.
During the meeting, the regulator demanded that companies strictly comply with the E-Commerce Law, the Anti-Unfair Competition Law, and the Food Safety Law. SAMR emphasized that platforms should compete rationally, standardize sales promotion activities, and work together to create a favorable environment for consumers, entrepreneurs, couriers, and platform companies.
Source: SAMR
SAMR to intensify the fight against internal involutionary competition in the EV market
SAMR has announced measures to combat so-called “internal involutionary competition,” characterized by low-quality goods. This refers to cases where companies, in pursuit of short-term profits, lower quality standards, which harms consumers and the market as a whole.
SAMR has identified three main reasons for this problem:
- Excess production capacity and weak demand in some industries
- Companies pursue their own immediate interests and lack the ability to innovate, resorting to price wars and sometimes even deliberately creating counterfeit products
- Imperfect regulatory mechanisms
To remedy the situation, SAMR proposes:
- Tighten control over production, including strict safety and quality checks, etc.
- Increase random checks on products sold online. Particular attention should be paid to electric transport, gas equipment, and building materials.
- Support for manufacturers: launch a program of targeted assistance to enterprises, including the development of individual strategies for industries such as cable products, batteries, and construction materials.
Source: SAMR
Chinese regulator suspends antitrust probe into DuPont
SAMR has suspended its antitrust investigation into DuPont China Group without disclosing the reasons for its decision.
The regulator initiated the investigation on April 4 as part of Beijing's response to the US imposing new high tariffs on Chinese goods.
Source: Reuters
JD.Com opens its first restaurant with only food delivery, pick-ups
Chinese e-commerce giant JD.Com has opened 7Fresh Kitchen, its first self-operated physical restaurant that offers only food delivery and pick-up services, with no dine-in option. 7Fresh Kitchen, located in Beijing’s Dongcheng central district, received 800 orders on opening day.
Analysts note that JD.Com is betting on synergy between online and offline businesses, including the development of its own 7Fresh supermarkets and JD Mall retail stores. Meituan, in turn, is strengthening its offline business by developing the Xiaoxiang supermarket chain. Meanwhile, Alibaba Group Holding’s instant retail arm Taobao Flash Buy will reinforce its advantages in the clothing and beauty categories, as well as expand instant consumption in non-catering areas.
Source: YiCai Global
SAMR’s landmark decision to unwind a merger between pharmaceutical companies due to the threat to competition
SAMR prohibited the acquisition of shares in Shandong Beida Gaoke Huatai Pharmaceutical Co., Ltd. by Wuhan Yongtong Pharmaceutical, concluding that it could restrict competition in the market for papaverine hydrochloride injection solution.
In 2018, Wuhan Yongton acquired 50% of Shandong Huatai's shares, gaining control of the company. Although the turnover of both companies did not reach the threshold for mandatory notification to the regulator (800 million yuan), SAMR initiated an investigation in January 2025.
The SAMR’s decision:
- Sell the shares of Shandong Huatai to an independent buyer by January 2026.
- Terminate exclusive raw material supply agreements by September 30, 2025.
- Refrain from entering into new deals.
This is a rare instance of China blocking a deal that does not fall under standard review criteria. The decision reflects a tightening policy in the pharmaceutical sector, where regulators are cracking down on monopolies and inflated prices.
Source: SAMR
Chinese authorities fined a pharmaceutical company 37.7 million yuan for anti-competitive practices
SAMR fined Weifang Zhongyuan Pharmaceutical 37.7 million yuan for abusing its dominant position in the raw materials market for pharmaceuticals. The company inflated prices, refused to engage in transactions, and imposed unfair conditions.
Weifang Zhongyuan, lacking its own pharmaceutical business license, operated through a subsidiary and from 2014 to 2019 controlled nearly the entire Chinese market for magnesium trisilicate — a key ingredient in medications for gastrointestinal disorders and hypertension.
The decision against Weifang Zhongyuan was made under the previous version of China’s Anti-Monopoly Law (prior to the 2022 amendments):
- Illegal gains confiscated: 15.89 million yuan
- Fine: 21.75 million yuan, or 7% of the company’s 2018 revenue
As part of the investigation, four companies that collaborated with Weifang Zhongyuan were also fined. They submitted false information and obstructed the investigation, each receiving a fine of 200,000 yuan.
Source: Weixin
Five Chinese telecommunications companies fined for price-fixing
SAMR fined five telecommunications companies in Zhuji City (Zhejiang Province) for collusion aimed at price fixing and market division in fiber optic communication projects. Each company was fined 500,000 yuan.
In 2020, the five companies held a series of closed-door meetings where they agreed to set a uniform connection fee of 750 yuan per household and to divide service areas among themselves.
Although the collusion was stopped before the companies could implement their agreements, SAMR recognized the very fact of the collusion as a violation of the Anti-Monopoly Law (as amended before 2022). Each company was fined 500,000 yuan.
Source: Weixin
