Since 2017, under the strong leadership of the CPC Central Committee with Xi Jinping as its core, the Ministry of Commerce has solidly set up the "four consciousness", comprehensively implemented the spirit of the 19th CPC National Congress, thoroughly studied Xi Jinping’s thought on socialism with Chinese characteristics for a new era, implemented the new development ideas, improved anti-monopoly legislation, strengthened anti-monopoly law enforcement, improved the efficiency of economic operation, safeguarded fair market competition and consumers' interests, and made new progress in all anti-monopoly work.
Promote the introduction of fair competition review system to improve China's anti-monopoly laws and regulations system. First, formed the preliminary research results of the revision to the Anti-monopoly Law by completing the draft revision of the Measures for Examination of the Concentrations between Undertakings. Second, strengthened the construction of working rules and systems to promote the full inclusion of work in the orbit of the rule of law. Third, promulgated the Implementing Rules for the Fair Competition Review System (for Provisional Implementation)jointly with the National Development and Reform Commission, the Ministry of Finance and the State Administration for Industry and Commerce, to further improve the fair competition review system, promote the introduction of the fair competition review system and promote the formation of joint force of fair competition review and anti-monopoly law enforcement, better implement competition policies, regulate government behaviors and maintain fair market competition.
Prevent market monopoly and maintain fair market competition. Totally 400 cases of declaration of concentration between undertakings were received in 2017, of which 353 cases were filed and 344 cases were closed. Among the closed cases, seven cases were given conditional approval, setting a new high from the implementation of the Anti-monopoly Law; the number of major and complicated cases increased significantly, with non-simple cases accounting for 30% of the total; cases related to the manufacturing industry accounted for more than 50% of the total, the distribution of cases related to other industries were more diversified; overseas M&As remained active with enterprises in the US, Europe and Japan still being the subjects thereof; the transaction scale increased significantly with over 20% of the cases involving more than CNY10 billion. Specifically, first, protected fair market competition and safeguard consumers' interests. Conditionally approved seven cases of cross-border M&As with significant impact, i.e., the "case of merger between Dow and DuPont", the "case of merger between Agrium and Potash Corporation of Saskatchewan", the "case of acquisition of Hamburg Süda by Maersk", the "case of acquisition of Samsung printer business by HP", the "case of acquisition of Brocade by Broadcom", the "case of acquisition of equities of SPIL by ASE", and the "case of merger between Becton and C. R. Bard", requiring the declaring parties to take measures such as stripping assets and technologies to protect fair competition in agricultural chemicals, shipping, printers, communication, semiconductor and other markets and safeguard consumers' interests. Second, served the construction of new system for open economy and promoted a high level two-way opening-up. Foreign-related M&A cases accounted for about 70% for the total in 2017, creating a stable, fair, transparent, rule of law-based, and predictable business environment, and studied, in concert with the State-owned Assets Supervision and Administration Commission (SASAC), on the establishment of an overseas anti-monopoly response mechanism for enterprises to safeguard the interests of the state and enterprises. Third, constantly improved the efficiency of law enforcement and enhanced the level of refinement and specialization. In 2017, the average case-filing time and closing time were shortened by 14.2% and 8% YoY respectively, and 97.8% of the simple cases were closed at the preliminary examination stage. During the review of specific cases, encouraged the handling team to comprehensively use a variety of analytical tools to provide scientific verification for review conclusions and ensure that the cases can withstand the test of law and time. Fourth, taken effective law enforcement measures and constantly consolidate the authority of the Anti-monopoly Law. Publicly punish six cases that fail to be declared in accordance with the law including the case of "acquisition of Rich Health Checkup by Health 100" and supervised the enforcement of 24 conditional cases in accordance with the law, to prevent market monopoly and maintain fair market competition.
Participated in the global competition governance and promoted the liberalization and facilitation of trade and investment. Constructed a cooperation framework for equal dialogue and win-win cooperation with major jurisdictions in response to the fragmentation of the rules of international competition so as to promote the synergy of anti-monopoly law enforcement authorities in the major jurisdictions. First, achieved fruitful results in bilateral cooperation. Concluded anti-monopoly memorandums with anti-monopoly law enforcement authorities in the UK, Spain, Brazil and other countries, and held the China-EU Competition Policy Dialogue and the China-EU Competition Week. Second, the BRICS countries pushed forward in depth cooperation. Participated in the BRICS Summit in Brazil and concluded the Joint Statement of Leaders of BRICS Competition Organizations. Third, deepened multilateral cooperation. Actively participated in such international conferences as conferences of the OECD and other multilateral organizations, Conference of the American Bar Association and the German International Competition Conference, to sing Chinese melodies and give Chinese voices. Fourth, comprehensively deepened the cooperation in law enforcement. Cooperated with the US, the EU, South Africa, India and other jurisdictions in more than 20 cross-border M&A cases. Among them, the "case of merger between Dow and DuPont" was called by the EU as "a model of bilateral competition and cooperation. "Fifth, achieved sparkling highlights in the formulation of international competition rules. Substantively concluded negotiations on the Agreement on Cooperation between China and the Eurasian Economic Union and China-Chile Free Trade Agreement and other competition issues. Promoted the reform in the global competition governance model featuring joint consultation, joint establishment and sharing on the basis of participation in global competition governance and promotion of trade and investment liberalization and facilitation.
Integrated industry, official and university resources to enhance the overall effectiveness of anti-monopoly work. Comprehensively implemented the decisions and arrangements of the anti-monopoly commission under the State Council and promoted strategic planning and coordination under overall planning. First, constantly improved anti-monopoly guidelines. Completed the drafting of the four guidelines, namely the Anti-monopoly Guide on Abuse of Intellectual Property Rights, the Guidelines on Anti-Monopoly in the Automobile Industry, Guidelines for Operator Commitment in Anti-monopoly Cases and the Guidelines for the Application of the Leniency Program to Cases Involving Horizontal Monopoly Agreements. Second, carried out in-depth assessment of market competition. Conducted the assessment of the overall market competition in China and completed the assessment of the market competition in six key industries such as automobile, steel and semiconductor industries. Third, gradually improved the anti-monopoly database. Added data of four key industries, namely the semiconductors, pesticides, communication equipment and mid-to-high end medical equipment industries. Fourth, carried out in-depth advancement of competition advocacy. Held the training courses on the Anti-monopoly Law jointly with the SASAC and the China Association of Enterprises with Foreign Investment and successfully held the 6th China Competition Policy Forum, building the forum into a think tank platform for exchanging experiences in international anti-monopoly work and propagandizing the anti-monopoly work achievements in China. Enhanced the overall effectiveness of anti-monopoly work on the basis of integrating industry, official and university resources and uniting work force.
In 2018, the tenth anniversary of China's anti-monopoly law enforcement, we will thoroughly implement the spirits of the 19th CPC National Congress and the deployments of the Central Economic Working Conference, take Xi Jinping thought on socialism with Chinese characteristics for a new era as the guidance, implement the new development concept, closely center on the central business work, handle cases in strict accordance with the law, protect fair market competition, and safeguard consumers' interests, forge ahead with determination and courage, to constantly play a pioneering role in the anti-monopoly law enforcement work.
Translated by Hou Zuowei
