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China's Competition Policy Reforms: The Antimonopoly Law and Beyond

Author

Listed:
  • Bruce Owen

    () (Stanford University)

  • Wentong Zheng

    () (Stanford University)

  • Su Sun

    () (Economists Incorporated)

Abstract

More than twelve years have elapsed since China began its efforts to enact a comprehensive antitrust law. Today, drafts of the law are still being debated. Such a protracted legislative process is highly unusual in China, and can only be explained by the controversy the draft law generates. After a brief review of China’s current competition policy, this paper discusses the fundamental issues in China’s economy that give rise to the challenges facing China’s antitrust policymakers in enacting the new antitrust law. These issues include the role of state-owned enterprises, perceived excessive competition in China’s economy, mergers and acquisitions by foreign companies, the treatment of administrative monopolies, and the enforcement of the antitrust law. While those controversies create significant policy issues for China, they do not constitute valid objections to the enactment of the new antitrust law. Meanwhile, it will be important for China to recognize that the new antitrust law alone will not be sufficient to fully realize its goal of promoting competition in its economy; other reforms will be necessary as well. China will be better off by moving swiftly to enact the new antitrust law, while keeping the momentum to engage in those other reforms.

Suggested Citation

  • Bruce Owen & Wentong Zheng & Su Sun, 2007. "China's Competition Policy Reforms: The Antimonopoly Law and Beyond," Discussion Papers 06-032, Stanford Institute for Economic Policy Research.
  • Handle: RePEc:sip:dpaper:06-032
    as

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    File URL: http://www-siepr.stanford.edu/repec/sip/06-032.pdf
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    References listed on IDEAS

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    Cited by:

    1. Gaasbeek, P.B. & van Bergeijk, P.A.G., 2011. "Chinese competition," ISS Working Papers - General Series 22630, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    2. Susan Beth Farmer, 2013. "Recent developments in regulation and competition policy in China: trends in private civil litigation," Chapters,in: The Chinese Anti-Monopoly Law, chapter 1, pages 15-72 Edward Elgar Publishing.
    3. Li, Yan, 2011. "The competitive landscape of China’s telecommunications industry: Is there a need for further regulatory reform?," Utilities Policy, Elsevier, vol. 19(3), pages 125-133.
    4. Rock, Michael T. & Toman, Michael & Cui, Yuanshang & Jiang, Kejun & Song, Yun & Wang, Yanjia, 2013. "Technological learning, energy efficiency, and CO2 emissions in China's energy intensive industries," Policy Research Working Paper Series 6492, The World Bank.
    5. Man Li Rita Yi & Yu Li Herru Ching & Mak Cho Kei & Chan Po Kei, 2016. "Rationales for the Implementation of Competition Law in EU, the US and Asia: Content Analysis and Data Visualization Approach," Asian Journal of Law and Economics, De Gruyter, vol. 7(1), pages 63-100, April.
    6. Mel Marquis, 2013. "Abuse of administrative power to restrict competition in China: four reflections, two ideas and a thought," Chapters,in: The Chinese Anti-Monopoly Law, chapter 2, pages 73-141 Edward Elgar Publishing.

    More about this item

    Keywords

    China; antitrust; law;

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

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