Review № 9 of Chinese Antitrust News from the Experts of the BRICS Competition Centre
- Legislative changes to improve business environment
- Online transaction compliance reporting measures
- Antitrust investigation launched against DuPont China
- Draft amendments to the Cybersecurity Law
- Strengthening counteraction to foreign sanctions
- China's response to the threat of higher tariffs
Legislative changes to improve business environment
In order to improve the business environment, SAMR has amended a number of regulations governing the activities of economic entities:
- The rules for random inspections of public information on enterprises have been revised. It is clarified that competent authorities must more carefully coordinate such inspections, avoiding unreasonable, excessive and repeated inspection activities.
- The rules for issuing permits for the production of industrial products have been revised. It is clarified that the authority to issue such licenses cannot be delegated to lower authorities.
- The provisions on the activities of inspection agencies have been revised. The upper limit of fines has been increased from 30,000 to 50,000 yuan in the case of submitting false reports, and from 30,000 to 100,000 yuan if the report submitted is fictitious.
Online transaction compliance reporting measures
SAMR has issued Temporary Measures for the Transfer of Online Transaction Compliance Data. The document defines, among other things:
- the content of such data (information about the parties to the transaction, facts of their illegal behavior and assistance to executive authorities, provision of special goods or services, etc.);
- the procedure for their transfer (deadlines, etc.);
- the powers of inspection bodies to use and store data;
- the responsibility of the general public to maintain the lawfulness of online transactions.
Antitrust investigation launched against DuPont China
SAMR has announced an investigation into DuPont China Group, a subsidiary of the American company DuPont, for allegedly violating Chinese antitrust laws. The move follows the introduction of at least 11 Chinese countermeasures (including a 34% tariff hike and export controls on rare earth elements) in response to the Trump administration's actions.
In a letter, a DuPont spokesperson said the company was aware of the situation: "We take this matter very seriously and are investigating the allegations."
DuPont is an American science and technology company known for innovation in chemicals, materials science, and biotechnology.
Sources: SAMR, China Daily, Finance.Yahoo
Draft amendments to the Cybersecurity Law
The Cyberspace Administration of China is holding public consultations on the draft amendments to the PRC Cybersecurity Law. The collection of opinions will last until April 27, 2025. The main changes concern legal responsibility for ensuring cybersecurity, the security of network and personal data, as well as the circumstances for mitigating and canceling punishment.
Source: САС
Strengthening counteraction to foreign sanctions
China has published the "Provisions for the Implementation of the Law of the People's Republic of China on Countering Foreign Sanctions". In particular, the document specifies that the necessary measures to combat sanctions include, among other things, prohibiting or restricting the provision of data and personal information. It also states that if a subject fails to take appropriate measures, the Chinese authorities have the right to prohibit or restrict the cross-border transfer of data.
Source: Gov.cn
China's response to the threat of higher tariffs
The Commerce Department responded to the US threat to impose additional 50% tariffs: “This only exacerbates previous mistakes and exposes America’s natural tendency to blackmail, which is absolutely unacceptable to China. If the US continues to insist on its own way, regardless of others, China will fight to the end.”
Earlier, the US imposed large tariffs on a number of countries: for China, the tariff was 34%, which, in addition to the existing tax, amounted to 54%. In response, China also imposed counter-tariffs of 34%, to which Trump threatened to increase the rate by another 50%.
Sources: ChinaNews, Ministry of Foreign Affairs of the People's Republic of China 1, Ministry of Foreign Affairs of the People's Republic of China 2
