China Passes Antitrust Law

Marking the end of a legislative process that has lasted more than a decade, on 31 August 2007 the National People's Congress passed China's first Antitrust Law (literally Anti-Monopoly Law), to take effect 1 August 2008.

The Antitrust Law prohibits restrictive agreements, abuses of dominant market positions and mergers and acquisitions with the effect of restricting or eliminating competition. It also addresses anti-competitive administrative action. Significant penalties and remedies for infringement apply.

The Antitrust Law generally treats foreign companies and Chinese companies equally. It also establishes a dedicated enforcement authority, the Anti-Monopoly Enforcement Agency (AMEA).