Antitrust Comes Of Age In China

*The first issue of Topics in Law and Economics in China from NERA Economic Consulting.

On 30 August 2007, China’s Anti-Monopoly Law (AML) was passed on its third reading before the Standing Committee of the People’s National Congress (NPC). The AML has finally been adopted after almost 14 years of planning, drafting, and debate. It will become effective on 1 August 2008.

The AML reflects many general principles that are largely unobjectionable. For example, the intellectual property (IP) provision at article 55 says "This Law is not applicable to undertakings’ conduct in exercise of intellectual property rights pursuant to provisions of laws and administrative regulations relating to intellectual property rights; but this Law is applicable to undertakings’ conduct that eliminates or restricts competition by abusing their intellectual property rights," which is consistent with the manner in which US antitrust law views the exercise of IP rights. However, the AML also deviates in