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China Adopts Fair Competition Review Regulation

On 11 May 2024, the “Regulation on Fair Competition Review” (公平竞争审查条例, hereinafter the “Regulation”) was adopted at the 32nd executive meeting of the State Council and came into force on 1 Aug. 2024.

For the first time, the Regulation provides a legal framework for fair competition review, specifying the goals, standards, mechanisms, and supervision and guarantees to prevent government departments from issuing policies and measures that exclude or restrict competition.

Previously, the fair competition review system was introduced in 2016 through a State Council document. In 2022, the amended Anti-Monopoly Law called for the establishment and improvement of this system. This Regulation fills the legal gap in the fair competition review system.

The highlights of the Regulation are as follows.

  • All policies and measures related to the economic activities of operators, including laws, administrative regulations, local regulations, rules, normative documents, and specific policy and measures, are subject to fair competition review.
  • Drafted policies and measures shall not contain any content that restricts or indirectly restricts market entry and exit, hinders the free flow of goods and production factors, unreasonably affects production and operation costs, or influences business behavior.

 

 

Photo by Matt Zhang on Unsplash

Contributors: CJO Staff Contributors Team

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