New Normal for Anti-Mo nopolization

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  The recent cases of anti-monopolization investigations seem to be exclusively targeting the foreign enterprises. Then, there are guesses, reports and analysts saying that the Chinese government is driving foreign investors away from certain sectors to leave the space for domestic companies.
  Xu Kunlin, director of the Price Supervision and Anti-Monopolization Department at the National Development and Reform Commission (NDRC), says that the anti-monopolization investigations into foreign companies only take a small portion of the total number of such cases. Therefore, there is no said “selective enforcement” or “driving foreign investors away”. The Chinese government will keep attracting foreign investment through easing the market access for foreign investors.
  The experts widely believe that the anti-monopolization investigations are going to get deeper, broader and more powerful. The foreign enterprises are advised to get used to the new normal and treat Beijing’s actions of specifying the market order reasonably.
  According to the data from the government, the NDRC had launched anti-monopolization investigations into 335 enterprises and industrial associations by September 11. Only 33 of them are foreign funded, taking less than 10% of the total number of cases. The General Administration of Industry and Commerce(GAIC) launched two anti-monopolization investigations in foreign companies, which were respectively Microsoft and Tetra Pak, only taking 5% of the total number of investigations it had launched.
  Thus, Xu Kunlin stressed that the enforcement of the Anti-Monopolization Law did not exclusively target any market bodies or namely, the foreign enterprises. The investigations only target the monopolization with the ultimate goal of ensuring the fair competition in the market instead of protecting Chinese local enterprises. The enterprises placed under investigations also have their interest and rights under protection then.
  The Chinese law enforcement departments have already launched investigations into four categories of monopolizations, which all started with Chinese enterprises. “State-owned enterprises, private enterprises and foreign enterprises are all exposed to the anti-monopolization investigations as long as they are indeed engaged in this,” Xu says.
  The Chinese government is going to ease the market access for foreign investors with the focus on the promotion of the opening-up of service. The government, represented by the Shanghai Free Trade Zone, is actively exploring the new negative list-based management pattern. It is now doing everything to reduce the number of items required for the approval to optimize the examination procedures and expand the market.
  Notably, anti-monopolization investigations are under the spotlight of every country. Most developed countries have made complete and strict anti-monopolization laws and regulations and could severely punish any wrongdoers. The U.S. Department of Justice, for example, initiated more than 100 anti-monopolization investigations in 2013.
  The Chinese government’s intensive efforts in fighting against monopolization are under the scrutiny because this country rarely had such things happen before. This reflected that China previously had no powerful anti-monopolization weapon and the punishment for monopolists was too mild to cause pain. With the improvement in economy and legislation, China is no longer a “desert of anti-monopolization law”. Foreign enterprises, state-owned enterprises and private enterprises all need to get used to this new situation.
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