Rules for fair competition reviews fill legislative gap in China’s fair competition review system: SAMR

Just-introduced regulations for fair competition reviews have filled the legislative gap in China's fair competition review system, the State Administration of Market Regulation (SAMR) said on Friday, noting the rules marked that the country has basically formed an anti-monopoly legal system with Chinese characteristics, and with a relatively complete content and a sound system.

Peng Xinmin, an official of the SAMR, made the remarks at a press conference on Friday, noting that the rules, for the first time, provide comprehensive, systematic and detailed provisions on the objects, standards, mechanisms, supervision and safeguards of fair competition reviews in the form of administrative regulations.

From August 1, administrative agencies and organizations legally authorized to manage public affairs must conduct fair competition reviews when formulating laws, rules and policies related to business activities, according to the regulations.

The purpose of establishing a fair competition review system in China is to prevent the introduction of measures that exclude or restrict competition, in a bid to create a favorable environment for fair competition among all types of business entities, Zhou Zhigao, an official of the SAMR, said during the press conference.

While allocating duties to both central and local government departments, the regulations outline specific standards for fair competition reviews. For instance, relevant contents that could restrict market entry or exit, and the free flow of goods and business operations should not be contained in the new policy measures, Zhou said.

The regulations also stress that stakeholders and public opinions should be taken into account during reviews to safeguard their interests.

In its new development paradigm, China prioritizes the establishment of a unified national market characterized by high efficiency, standardization, openness, and fair competition.

We have fully implemented the fair competition review system, and since its implementation, nearly 1.62 million policies and measures have been reviewed nationwide, with 4.47 million documents cleaned up and 93,000 policies and measures that exclude or restrict competition repealed and revised, according to Zhou.

We believe that with the full implementation of the regulations, the foundation of the fair competition system for accelerating the construction of a unified national market will be more solid, the policies and measures benefiting all kinds of business entities will be more equitable, and the level of China's business environment will be further upgraded, the administration noted.