Five departments recently issued together the Detailed Rules for the Implementation of the Fair Competition Review System (referred as the “Detailed Rules” below). It clearly states the specific regulations as the review methods, review standards and supervision methods. It aims to promote the in-depth implementation with higher quality, maintain a unified national market and fair competition, smooth the domestic cycle, and build a new pattern of the development.
The Detailed Rules is comprised by review mechanisms and procedures, review standards, exceptions, third-party assessment, supervision and accountability. There are three highlighted points of this Detailed Rules:
- Deeper overall planning. Strengthen the functions of inter-ministerial joint conferences and local government joint conferences, determine that the person in charge of the specific government shall be the convenors of the joint conference in principle for local government at or above the county level. The active review mechanism for the joint conference office shall be duly established taking greater and more concrete measures to promote the implementation of this system.
- Higher standards for review. Focus on the key problems with strong responses by enterprises such as obstructing equal and convenient exit from the market, assigning transaction or implementing local protection in a disguised form of award or subsidy, and affecting the equal use of the factor of production. Blanks and loopholes in the rules and regulations shall be promptly covered and make the review system more systematic and targeted.
- Stricter supervision and examination. Fully use the incentive and binding functions of supervision and selective examination, it shall be cleared that the State Administration of Market Regulation is responsible for the organization of the selective examination under due policies and measures. Industries and regions with strong reactions from market entities, concentrated problems, and frequent abuses of administrative power to exclude and restrict competition shall be paid more attentions for the selective examinations, and ensure that those examinations are fully implemented.
If you want to read the complete article, you can refer to the below link (in Chinese only): http://www.shanghaiinvest.com/cn/viewfile.php?id=16414
If you have any question, please contact me.
Mr. Mike Chang (Partner)