Review №2 of Chinese Antitrust News from the Experts of the BRICS Competition Centre
- AAM–Dowlais Deal Conditionally Approved
- 10 Major Cases in Combating “Involutionary” Competition
- Episode 1 of “Foreign Antitrust Regulation”: The United States
- The State Antimonopoly Bureau Launches Social Media Accounts
AAM–Dowlais Deal Conditionally Approved
China’s State Administration for Market Regulation (SAMR) has approved, subject to remedies, the acquisition of the UK-based Dowlais Group by American Axle & Manufacturing (AAM). Following its review, the authority concluded that the transaction could affect competition in the Chinese markets for power transmission components and modules for rear-wheel-drive vehicles.
AAM and Dowlais Group committed to supplying their products on FRAND terms, continuing to fulfill existing contractual obligations to customers, refraining from refusing contract renewals without justified reasons, and maintaining stable pricing.
As both parties are major international suppliers of automotive drivetrain systems, merger clearance applications were submitted in several jurisdictions. In particular, approval was obtained in the EU last October.
Sources: SAMR 1, SAMR 2, Global Times
10 Major Cases in Combating “Involutionary” Competition
At a thematic press conference, SAMR outlined ten key measures taken in 2025 to combat so-called “involutionary” competition (neijuan):
- A “compliance interview” with the logistics platform Huolala (one of China’s most popular freight-hailing services). SAMR required the company to strictly comply with the PRC Anti-Monopoly Law and to ensure that platform rules and algorithms are fair, impartial, and transparent.
- A series of measures to prevent the “export” of involutionary competition in the photovoltaic industry. Under the auspices of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, key industry players signed a Compliance Convention, committing to operate overseas in accordance with applicable laws and to jointly uphold a positive international image of Chinese photovoltaic companies.
- A fine imposed on Kaifeng Baikang Health Consulting for fraudulent marketing. During its livestream sales, the company marketed a “unique cure-all” to elderly consumers; the videos were viewed more than 37,000 times. The case demonstrates the authority’s zero tolerance for fraud, especially where elderly consumers are targeted Kaifeng Baikang Health Consulting за мошеннический маркетинг.
- Suppression of a “subsidy war” in the online food delivery market. SAMR repeatedly held discussions with major delivery platforms (Meituan, Taobao Flash Sale, and JD.com), urging them to maintain reasonable levels of subsidies when promoting goods and services of individual merchants.
- Recall of defective power banks. Across the country, provincial regulators recalled a total of 1.4 million units. Authorities in each affected province strongly urged marketplace operators and manufacturers to strictly fulfill their obligations regarding product returns.
- A nationwide quality inspection of electric vehicles — the first such campaign targeting models of major domestic manufacturers. For companies, this served as an additional incentive to strictly comply with quality and safety standards.
- A campaign to promote advertising compliance, which effectively reduced the number of violations and increased businesses’ awareness of advertising rules.
- Improving the quality of certification procedures, preventing companies from lowering standards or simplifying production processes, and thereby reducing the risk of cheap, low-quality products entering the market.
- Participation in the development and implementation of international standards, including “Conflict of interest in organizations — Guidance” and more than ten standards related to electric vehicles.
- Conducting fair competition reviews — assessments of regulatory documents to identify provisions that hinder competition. Over the year, 58,000 policy measures were reviewedfair competition review.
According to SAMR representatives, all of these cases reflect three key characteristics of regulation: a preventive approach, a balanced combination of strictness and flexibility, and cooperation among all stakeholders (government authorities, platforms, companies, and consumers).
Episode 1 of “Foreign Antitrust Regulation”: The United States
SAMR launched a series of infographics describing antitrust legislation and enforcement frameworks in foreign jurisdictions. The first release focuses on the United States, outlining key applicable laws, thresholds for filing merger notifications, and potential anticompetitive conduct.
Source: SAMR
The State Antimonopoly Bureau Launches Social Media Accounts
An official channel of the State Anti-Monopoly Bureau has been launched on the Chinese social media platforms WeChat, Weibo, and Douyin. All accounts are named “China Anti-Monopoly” (中国反垄断). The authority will share information on major developments, explanations of legislation, notifications of investigations, and more. Previously, antitrust-related news was published only via SAMR’s general official channelкитайских социальных сетях WeChat, Weibo и Douyin.
“We firmly adhere to the principles of protecting and promoting fair competition and strive to communicate antitrust policy to the public <…>. Let us together be steadfast defenders and active advocates of fair competition! We look forward to your attention, support, and participation!” the welcome post states.
Source: WeChat
