China Begins Drafting on Anti-monopoly and Anti-dumping Rules

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Last updated at: (Beijing Time) Wednesday, January 09, 2002

China Begins Drafting on Anti-monopoly and Anti-dumping Rules

The State General Administration for Industry and Commerce is busy reviewing and amending existing rules to make them conform to the WTO regulations. Once these laws are formulated, an overall legal framework for market order and supervision is expected to take shape.

Amending existing rules

China's market watchdog is busy reviewing and amending existing rules to make them conform to the World Trade Organization (WTO) regulations.

Wang Zhongfu, minister of the State General Administration for Industry and Commerce, said on Tuesday that his administration also is helping draft the anti-monopoly and anti-dumping laws.

Once these laws are formulated, an overall legal framework for market supervision is expected to take shape.

"We are in a transition period from the opening-up of the market to an unfurling of the rules of the game. And the formulation and revision of the rules are our top priorities this year," Wang said at Tuesday's national meeting of commerce and industry officials.

The basic principles of the WTO, such as market access, protection of intellectual property rights and fair play, are all issues dealt with by Wang's department.

Strenghtening market order

Wang said in his report that his administration will continue to play a large role in the nation's large-scale rectification of the market order, which is designed to eliminate foul play.

An important part of the rectification is the crackdown on counterfeit and shoddy commodities, Wang said.

Last year, industry and commerce authorities nationwide accomplished marked results in regulating market access and improving the "business environment." About 990,000 enterprises saw their business licenses revoked last year.

More than 100,000 cases involving the production and sale of fake goods, and 130,900 cases involving the violation of consumers' rights are under investigation.

Wang said administrative monopolies, forced deals and market blockades have become a cancer in China's domestic market.

He said his administration will tighten the nationwide campaign started last year to fight local protectionism and maintain fair competition.

Increasing supervision

China will continue to increase its supervision in the areas of trademark and advertisement to prevent irregular practices, Wang said.

The move is aimed at fostering an orderly market and helping State-owned enterprises make their products more competitive through trademark and advertising tools, Wang said.

Illegal use of trademarks, such as the production of fake merchandise of name brands and brand infringement, will result in serious consequences, Wang said.

The government will work harder to protect the 280 selected national name brands in China, but also to encourage local companies to develop more domestic brands.

Wang said trademark management is especially important for the reform of domestic enterprises to prevent the draining of State-owned intangible assets during the brand's asset reorganization and merger.

China's Anti-Monopoly Drive

As early as 2000 the State Administration for Industry and Commerce pointed out that it is necessary to make and enforce laws against restriction on competition in the dominant monopoly industries, such as electricity, insurance, railways, posts and commercial banks.

At the beginning of 2001 officials from the Economic Restructuring Office of the State Council said that the key issues in the reform and regrouping of monopolized industries lay in severing the government functions from enterprise management, strengthening competition mechanism, innovating enterprise system for the realization of scaled businesses.

China Introduces Anti-Dumping Law

The State Council issued an order on December 10, 2001, announcing that the country's Anti-dumping Statute, which includes regulations concerning dumping and damage, anti-dumping investigations, anti- dumping measures and an anti-dumping tax, will be effective from January 1, 2002.

Full Text of the Anti-dumping Statute (Chinese version)

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