New Chinese Anti-Monopoly Law

China's National People's Congress ("NPC") finally adopted a new Anti-Monopoly Law ("AML") in August after more than 10 years of drafting. The law will take effect on August 1, 2008.

Overview

The new AML is a tremendous leap forward for China, bringing it squarely into the modern world of antitrust and competition law. Based loosely on various European models and input from U.S. law, its general structure includes four substantive sections that (1) prohibit certain types of agreements unless they fall within specified exemptions; (2) prohibit certain behavior classified as abuse of dominant market position, providing a framework for determining when dominance exists; (3) establish a broad merger review scheme; and (4) prohibit abuse of government administrative powers restraining competition. A final section sets forth penalties for noncompliance and some miscellaneous provisions, including one that distinguishes between legitimate enforcement and "abuse" of