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By Susan Ning, Huang Jing and Yin Ranran

On 25 August 2011, the Ministry of Commerce (MOFCOM) released the MOFCOM Rules for Implementation of Relevant Issues regarding National Security Review Mechanism for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (NSR Rules).  From 1 September 2011, the Rules replaces the MOFCOM Interim Rules for Implementation of Relevant Issues regarding National Security Review Mechanism for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (NSR Interim Rules) issued on 4 March 2011 (see our article entitled "MOFCOM issues national security review interim rules").

Compared with the Interim Rules, the key change we see in the NSR Rules is that MOFCOM clearly states that the authority will assess the applicability of the national security review (NSR) process from the substance and actual impact of a transaction; and that foreign investors shall not evade the NSR regime via alternative transaction structures, including but not limited to warehousing arrangements, trusts, multi-tier investments, leases, loans, contractual control, or offshore transactions, etc.Continue Reading Updated National Security Review Rules: A Justifiable Cause of Anxiety?

By Susan Ning, Shan Lining and Angie Ng


Pursuant to the Anti-Monopoly Law, transactions which are construed as "concentrations" (i.e. mergers, acquisitions and joint ventures) and which meet with specified turnover thresholds 1; must be notified to, and cleared (from an antitrust law perspective) by MOFCOM, before business operators can go ahead with these transactions (notifiable concentrations). Continue Reading MOFCOM publishes draft rules on investigation procedures re failure to notify on concentrations

By Susan Ning, Shan Lining and Angie Ng

The radiation leaks in Japan’s Fukushima Daiichi nuclear plant (caused by the earthquake-tsunami in Japan on 11 March) has made consumers in China paranoid about the salt they will consume in the near future.  Once news of the leak in the nuclear plant broke, there was a mad "scramble" to purchase table salt – as Chinese consumers were concerned that in the near future, the sea water around China would be contaminated as a result of the radiation leakage.  According to press reports, around the same time, some table salt retailers proceeded to raise the retail prices of iodized table salt.

The Chinese Government controls prices in relation to table salt.  Specifically, the ex-works and wholesale prices of table salt are set by the National Development and Reform Commission (NDRC, the central price authority); in addition provincial price authorities also control to some extent, the retail prices of salt.  In some provinces, provincial price authorities set maximum retail prices – this means that table salt retailers are not to charge above a price set by these authorities.Continue Reading Salt Price Hikes Curbed by the Price Law

By Susan Ning, Shan Lining and Angie Ng, King & Wood’s Competition Practice.

On 26 October, a couple of Chinese airlines, including Air China, China Eastern Airlines, Shandong Airlines, Xiamen Airlines, Hainan Airlines, Capital Airlines and Shenzhen Airlines announced, separately, that they were going to raise passenger fuel surcharges for domestic flights.(1)  

Continue Reading Passenger Fuel Surcharge Hikes

By Susan Ning, Huang Jing and Angie Ng, King & Wood’s Competition Group

On 14 October 2010, the PRC National Copyright Administration (NCAC) published two pieces of regulations (the regulations) which govern the collection of copyright royalties for movies provided on the Internet, on flights and on public transport.(1)   Recently there have been concerns from internet cafes that these royalties are unreasonably high.(2)   There has also been some discussion in the press that these alleged “high” royalties could constitute an abuse of intellectual property rights, in breach of Article 55 of the Anti-Monopoly Law (AML).(3)Continue Reading Domestic Movie Royalties – Too High?

By Susan Ning, Huang Jing and Angie Ng, King & Wood’s Competition Practice

We understand that the SAIC is currently working on draft guidelines (the guidelines) which will shed light on how Article 55 of the Anti-Monopoly Law (AML) will be enforced. It has been reported in the press that the SAIC has published a 4th draft of these guidelines and are currently consulting with the relevant stakeholders (we understand that these drafts are not publicly available). Continue Reading IP rights and Antitrust – Awaiting Guidelines (and the Tsum-Sony Case)

By Susan Ning and Ding Liang, King & Wood’s Competition Group

In September 2010, Wuxi Baocheng Vehicle Cylinder Inspection Co. Ltd (WB) filed a civil suit to against Wuxi China Resources Gas Co., Ltd (WCR), alleging that the latter abused its dominance, in breach of the Anti-Monopoly Law (AML) (the “WB-WCR case”). WB is engaged in the business of inspecting and installing compressed natural gas vehicle cylinders. WCR owns and operates natural gas filling stations. WB alleged that WCR abused its dominance by refusing to fill natural gas for a vehicle that was installed with a natural gas cylinder installed by WB, in breach of Article 17(3) of the AML. (1)

Continue Reading Natural Gas Cylinders and Abuse of Dominance

By Susan Ning and Ding Liang, King & Wood’s Competition Group

In late August 2010, it was reported in the press that at least 10 antitrust private actions have been heard in the courts in China (see Two years on, ten private antitrust actions). This article describes one of the cases – Huzhou Yiting Termite Prevention Service Co., Ltd vs. Huzhou Termite Prevention Research Institute (an alleged abuse of dominance case) – in detail.Continue Reading Termites and Abuse of Dominance

By Susan Ning, Liu Jia, Huang Jing and Angie Ng, King & Wood’s Competition Group

BHP Billiton (BHP)(1), a global natural resources company, has recently launched a hostile bid (the bid) to purchase PotashCorp (Potash)(2), a leading potash producer based in Canada.
This proposed acquisition is likely to have an impact in the Chinese potash industry.Continue Reading BHP / Potash – and Chinese Antitrust