By Susan Ning, Liu Jia and Angie Ng

On 25 April 2011, the Supreme People’s Court (the Court) published draft rules which govern Anti-Monopoly Law (AML) private actions (Draft Rules)1.   These Draft Rules are entitled "Provisions on Issues Concerning the Application of Law in relation to Trials of Monopoly Civil Dispute Cases".  The Court will consult on these Draft Rules till 1 June 2011.

We note that these Draft Rules provide for applicants to file "joint" applications with others against respondents.  This article outlines what the Draft Rules say about joint applications and outlines how this interacts with the joint application regime pursuant to China’s Civil Procedure Law.

Continue Reading AML Class Actions and The Draft Litigation Rules

By Susan Ning, Shan Lining, Ji Kailun and Liu Jia

 

On 25 April 2011, the Supreme People’s Court (the Court) published draft rules which govern Anti-Monopoly Law private actions (Draft Rules).  These draft rules are entitled "Provisions on Issues Concerning the Application of Law in relation to Trials of Monopoly Civil Dispute Cases".

 

This article outlines the salent provisions of, and points to some interesting features of, these Draft Rules.
Continue Reading A Further Look At The Draft Rules Governing AML Private Actions

By Susan Ning, Yin Ranran

On 25 April 2011, the Supreme People’s Court issued for public comments draft rules which govern civil action in relation to Anti-Monopoly Law (AML) disputes.  These rules are entitled "Provisions on Issues Concerning the Application of Law in the Trial of Monopoly Civil Dispute Cases"("Draft Rules").  Prior to the release of these Draft Rules, there haven’t been any detailed rules in relation to AML civil action.  The court will consult on this Draft Rules till 1 June 2011.

The Draft Rules contain 20 articles covering jurisdiction, standing of plaintiffs, burden of proof, evidentiary rules, relationship of antitrust administrative investigations and the judicial process, form of civil liabilities and the statute of limitations.  The objective of these Draft Rules is to ensure proper adjudication of civil monopoly disputes cases, prevent monopolistic conduct, protect fair competition in the market and safeguard the interests of consumers and public interest. Continue Reading Supreme People’s Court Issues Draft Rules Governing Private Actions under the Anti-Monopoly Law

By Susan Ning and Yin Ranran

On 2 April 2011, the National Development and Reform Commission (NDRC) hosted a conference with 17 industry associations (relating to businesses selling major consumer products such as household electrical appliances, food, beverages and dairy products) in Beijing.  Specifically, the NDRC’s Price Department and Economic and Trade Department convened the conference as an effort to address the recent price hikes in commodities (see our articles entitledPrice Hikes for Washing Powders, Soaps and Shampoos Expected in April and Businesses Should Be Cautious in Making Advance Price Increase Announcement ). 

The NDRC hosted conference was also regarded as an effort of NDRC to address China’s increasing consumer price index (CPI) – which is a major indication of the rate of increase of inflation in China.  According to data released by the National Bureau of Statistics on April 15, China’s CPI rose 5.4% in March 2011 (from a year ago), hitting a 32-month high.
 Continue Reading NDRC Held Talks with 17 Industry Associations

By Susan Ning, Yin Ranran and Angie Ng

An instant noodle manufacturer recently announced that it decided to increase prices for its "container instant noodle" (referring to both instant noodles packaged into a variety of "cup-like" or rectangular containers) from 1 April 2011. In China, this instant noodle manufacturer is considered one of the leading brands in relation to the instant noodle industry.  According to press reports, the instant noodle manufacturer has announced that due to increased transportation and raw materials (e.g. flour and palm oil) costs, it intends to raise the prices for most of its container instant noodles to RMB 0.5 per unit – this amounts to an increase of between 10% to 15% from current prices. [Note:  In the past month, several manufacturers of household and daily care products also made announcements that they were intending to increase prices of specified products due to an increase in price in raw materials.  See our article entitled Price Hikes for Washing Powders, Soaps and Shampoos expected in AprilContinue Reading Businesses Should Be Cautious in Making Advance Price Increase Announcement

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, Liu Jia and Angie Ng

In March every year, lawmakers and political advisers from the National People’s Congress (NPC) (Chinas equivalent of Parliament) and the Chinese People’s Political Consultative Committee (CPPCC) (China’s top advisory body) conduct sessions in Beijing to take stock of social, legal and economic issues in China for the preceding year; and discuss objectives (in relation to the same issues) for the year going forward1.    These sessions are often referred to as the "two sessions".

Two statements which have arisen during these two sessions; are of particular interest (from an antitrust law perspective):
 Continue Reading The annual “two sessions” and antitrust law noises

By Susan Ning, Liu Jia and Angie Ng

We understand from media reports that on 18 February 2011, Hudong1  (a Chinese internet search engine) made an Anti-Monopoly Law (AML) complaint to the State Administration for Industry and Commerce (SAIC) against Baidu2  (arguably the most often or commonly used internet search engine in China; often referred to as China’s equivalent of "Google"). Continue Reading Wiki-Hudong against Wiki-Baidu – an abuse of dominance?

By Richard  Wigley of King & Wood’s Intellectual Property Group

China’s packaged software market is estimated to "grow from $4.7 Billion in 2008 to $8.3 Billion by 2013, with a five-year CAGR of 12.1%"1. China’s domestic software industry has, however, long suffered from the effects of rampant software piracy, making it difficult for domestic industry players to proportionally benefit from China’s economic rise over the past 30 years. Though the trials and travails of major global software companies, such as Microsoft, in China have been well-documented, domestic software companies, though with a seeming "home market" advantage, have often found it difficult to build viable business models in this environment. This environment for domestic software companies, however, appears to be changing for the better.Continue Reading China’s Support of Domestic Software Industry Strengthened by State Council Release of P.R.C. Government Policies

By Meg Utterback and Ding Liang of King & Wood’s Cross border dispute resolution Practice

As the United States mid-term elections draw near, we can expect greater protectionist measures from the US government in an effort to appease voters who are demanding an improvement in the US unemployment statistics. One such protectionist measure is the initiation of the recent 301 investigation relating to allegations that the Chinese clean technology and renewable energy sectors are being unfairly advantaged by government subsidies.   Almost all countries are subsidizing the renewable sector in one form or another in hopes of easing the world’s dependence on fossil fuels. It seems however that the US has taken umbrage with the extent of Chinese programs supporting the clean technology and renewable energy industries.Continue Reading China Clean Tech at Risk– Initiation of the Recent Section 301 Investigation