Susan Ning and Yin Ranran

Recently, the Ministry of Commerce (MOFCOM) announced that its Anti-monopoly Bureau is to put up a signboard for the "Office of State Council’s Anti-Monopoly Commission (AMC)".  According to Mr. Yao Jian, a spokesman for MOFCOM, the State Council has approved the formal establishment of the AMC Office (even though the AMC Office has been operational within MOFCOM since the enactment of the Anti-Monopoly Law (AML) in 2008).  

As the third anniversary of the AML draws near, Mr. Yao expects that this move will further enhance effective enforcement of the AML and the coordination among the various ministries under the AMC.

Continue Reading Formal Establishment of Anti-Monopoly Commission Office within MOFCOM Approved

By Susan Ning, Zheng Ziqing and Angie Ng

On 3 June 2011, the Ministry of Commerce (MOFCOM) published, for public comments, draft rules which explain how MOFCOM will evaluate concentrations pursuant to the merger control regime.  These rules are entitled "Provisional Rules on the Assessment of the Effects of Concentrations on Competition" (Draft Rules).  The public has been invited to submit comments on these Draft Rules by 13 June 2011.

In fact, Article 27 of the Anti-Monopoly Law (AML) outlines a list of factors that MOFCOM would take into account, when assessing concentrations.  These are: (a) the market shares of the business operators involved in the concentration and their control over the market; (b) the degree of market concentration; (c) the impact of the concentration of business operators on market entry and technological advancement; (d) the impact of the concentration on consumers and other relevant business operators; (e) the impact of the concentration of business operators on the development of the national economy; and (f) any other factors deemed by MOFCOM to be relevant for consideration.  The Draft Rules expand on these factors.  There are altogether 14 provisions in the Draft Rules.  The following table provides an illustration of how the Draft Rules "expand" on the factors set out in Article 27 of the AML.
 

Continue Reading Draft Merger Control Rules Published For Comments

By Susan Ning, Liu Jia and Angie Ng

It’s been slightly over a month since the enactment of a national security review (NSR) process for foreign acquisitions of domestic businesses.  Thus far, it is not clear how many (if any at all) foreign-local deals have undergone the NSR process,  Pursuant to the rules and regulations1  which govern the NSR process, there is no obligation on the part of the Chinese government to publish any determinations (whether deals are approved or not) in relation to deals which undergo the NSR process.

Continue Reading Local commerce administrative agencies and the national security review process