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China Releases Implementing Rules for Fair Competition Review

Tue, 10 Aug 2021
Categories: China Legal Trends

On 8 July 2021, the State Administration for Market Regulation (SAMR) and other four authorities jointly released the Implementing Rules for the Fair Competition Review (the “Implementing Rules”, 公平竞争审查制度实施细则), refining and improving the rules for the fair-competition review system.

Pursuant to the Implementing Rules, administrative organs and organizations authorized by laws and regulations to have the authority of public affairs administration shall conduct the fair-competition review in the formulation of rules, normative documents, and other policies concerning economic activities of market players, such as market access and exit, industrial development, investment promotion, tendering and bidding, government procurement, code of business conduct, and qualification standards, as well as specific policy measures on “case-by-case” basis.

Specific reviewing criteria stipulated in the Implementation Rules include :(1) prohibiting the setting up of unreasonable or discriminatory barriers for market access and exit; (2) prohibiting the granting of franchise rights to operators without fair competition; (3) disallowing to restrict the operation, purchase or use of commodities and services provided by specific operators; (4) prohibiting the establishment of examination and approval procedure or record-filing procedure with the nature of administrative examination and approval that is not subject to laws, administrative regulations or provisions of the State Council; and (5) prohibiting the setting up of approval procedures for industries, sectors, businesses, etc. that are not on the Negative List for Market Access.

The Implementing Rules shall come into force as of the date of promulgation, and the “Implementing Rules for the Fair Competition Review (for Interim Implementation)” (公平竞争审查制度实施细则(暂行)) shall be repealed simultaneously.

 

 

Cover Photo by Jerry Wang (https://unsplash.com/@jerry_318) on Unsplash

Contributors: CJO Staff Contributors Team

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