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ARTICLE · 24 SEPTEMBER 2020

Auto Industry Guidelines: A Practical Interpretation From Lawyers' Perspective

In August 2020, the long-anticipated Antitrust Guidelines for the Automobile Industry ("the Guidelines")

ChinaAntitrust/Competition Law

In August 2020, the long-anticipated Antitrust Guidelines for the Automobile Industry ("the Guidelines") finally lifted its veil in the book Collection of Antitrust Regulations and Guidelines 2019 authored by the Anti-Monopoly Bureau of China's State Administration for Market Regulation ("SAMR"). It has been four years since its last draft for public comments, and though its validity is still in question, the Guidelines shows the attitude of antitrust authorities on automotive issues and sheds light on antitrust compliance in the automobile industry.

I. The Battle against Automotive Monopoly

The automobile industry is a critical component of economic growth in China and is heavily regulated. Back in 2005, to regulate the distribution of automobiles, China applied measures1 to promote the 4S model and required the selling of automobiles to be conducted solely by authorized dealers in single brand stores ("4S stores") that provided the full service of

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