Review № 11 of Chinese Antitrust News from the Experts of the BRICS Competition Centre
- SAMR approved the Regulations on fair competition review
- SAMR signed a memorandum with the Competition Commission of Pakistan
- SAMR calls for greater dissemination of Antitrust Guidance for Industry Associations
- Special course on building a single national market and market supervision
- First training on law enforcement in the antimonopoly field
- SAMR met with AmCham China
- The European Commission will increase duties on Chinese electric cars
- Volvo will move electric vehicle production from China to Europe
- WeChat denies reports of forced market share reduction
SAMR approved the Regulations on fair competition review
SAMR has approved the Regulations on the fair competition review system, which will come into force on August 1st. This system involves checking existing and proposed laws, regulations, administrative decisions, etc. for the absence of provisions that impede the development of competition. Previously, the coordination and speedy implementation of these provisions was identified as one of the key SAMR tasks for 2024. In total, the document contains 5 chapters and 27 articles. The provisions regulate the verification criteria, the mechanism for reviewing cases, the principles of verification and guarantees, and also clarify legal responsibilities.
The department emphasizes its commitment to the course set by CPC General Secretary Xi Jinping, which is aimed at promoting the implementation of fair competition policies, comprehensively implementing the fair competition review system and eliminating all types of market barriers to create a fair market environment for business entities.
Source: WeChat
SAMR signed a memorandum with the Competition Commission of Pakistan
On June 7th, SAMR and the Competition Commission of Pakistan signed a memorandum of understanding on antitrust cooperation. The memorandum aims to strengthen bilateral cooperation on antitrust law and policy issues, which marks an important milestone in China-Pakistan relations. The signing was attended by Chinese Premier Li Qiang, Pakistani Prime Minister Shahbaz Sharif, SAMR chief Luo Wen and Pakistani Ambassador to China Khalil Hashmi.
Source: SAMR
SAMR calls for greater dissemination of Antitrust Guidance for Industry Associations
SAMR has issued a formal notice requiring all agencies to better disseminate the Antitrust Guidelines to Industry Associations and carefully monitor their fair application. The notice encourages creative ways to promote the guidance, from animated advertising to interactive online resources, and a comprehensive approach to holding operators accountable.
The document also contains clauses on the mandatory suppression of monopolistic practices by industry associations, the prohibition of entering into anti-competitive agreements, the desire to form a single national market, the conscious support of market competition and the promotion of healthy and orderly development of industry standards.
Source: SAMR
Special course on building a single national market and market supervision
From May 26th to June 1st, a training course on creating a single national market and regulating the market surveillance system was held at the SAMR educational hub in Shenzhen. The training was attended by heads of provincial departments, bureaus and commissions. Invited experts and scholars discussed issues related to the macroeconomic situation, promoting the construction of a single national market, improving the quality development of economic entities, the situation in international competition in the field of standardization and the development of a market supervision system in the Yangtze River Delta.
Source: SAMR
First training on law enforcement in the antimonopoly field
From May 27th to 31st, a training course for antimonopoly authorities was held at the SAMR educational hub in Shenzhen. 73 aspiring specialists from 32 provinces took part in it. During the training, the emphasis was placed on reproducing the circumstances of real cases in the format of a reality game for a deeper immersion in the process. As part of the training, participants visited the BYD conglomerate company to conduct research.
Source: SAMR
SAMR met with AmCham China
SAMR Deputy Director Pu Chun met with the President of the American Chamber of Commerce in China (AmCham China) Michael Hart. The two sides exchanged views on economic and trade relations between China and the United States and market surveillance issues.
Pu Chun said China aims to provide broad markets for foreign companies and create a transparent business environment, making investment in the Chinese economy attractive to companies from different countries. The Chinese ministry hopes that American companies will take advantage of the 45th anniversary of diplomatic relations between China and the United States to achieve even greater success in bilateral relations. Michael Hart, in turn, praised SAMR's efforts to support foreign companies and presented the White Paper on US Business in China for 2024.
Source: SAMR
The European Commission will increase duties on Chinese electric cars
The European Commission plans to introduce duties on the import of electric vehicles from China from July 4th. This decision was the preliminary result of an anti-dumping investigation into products of the Chinese auto industry, the final results of which will be announced on November 4th.
Duties vary from 17% to 38% depending on the brand and will be charged in addition to the standard 10%. For example, BYD will pay 17.4% on top, Geely - 20%, and SAIC - 38.1%.
According to the commission's statement, the investigation found that Beijing provides incentive government subsidies to its automakers when exporting cars. This, in turn, creates a threat to European auto companies and violates the principles of “fair competition.”
China called these measures “protectionist” and promised to take retaliatory action to protect its producers. Previously, the application of a 100% tariff on Chinese electric cars was announced in the United States, 40% in Turkey.
Volvo will move electric vehicle production from China to Europe
Volvo Cars plans to move production of its electric vehicles from China to Belgium to avoid the impact of expected high tariffs.
It is reported that Volvo EX30 and EX90 models will begin to be produced in the EU, as well as some models intended for sale on the UK market.
Volvo, owned by Zhejiang Geely Holding Group, is considered the most exposed to potential tariffs among Western automakers.
Source: The Business Times
WeChat denies reports of forced market share reduction
WeChat has denied the news of a forced reduction in its market share in payments related to the offline segment with payments via QR codes. Nikkei Asia previously reported that Chinese regulators called on Tencent to reduce its share in the payments market.
In May, a decree of the Central Bank of China on combating monopolies in the financial sector, affecting non-bank credit institutions, came into force. However, the document does not contain clear definitions and examples, which allows for different interpretations.
The largest mobile payment platforms Alipay and WeChat Pay account for more than 90% of the market in China.
Sources: Nikkei Asia, Pandaily
