Editor's note: Alexandr Svetlicinii is an associate professor of law at the University of Macau, where he also serves as coordinator for the master of laws program in international business law in English. The article reflects the author's opinions, and not necessarily the views of CGTN.

On August 30, 2021, anti-monopoly regulation was among the core issues discussed at the 21st meeting of China's Central Committee for Comprehensively Deepening Reform, presided over by Chinese President Xi Jinping. He stressed the importance of enhancing the anti-monopoly enforcement and improving the anti-monopoly supervision for the benefit of the overall economic development and better protection of the rights and interests of consumers. The present note highlights the state of affairs and future directions of China's anti-monopoly regulation.

First, China's Anti-Monopoly Law (AML) promulgated in 2007 and enforced since 2008 is currently undergoing revisions, which were included in the legislative work plan of the National People's Congress for 2021. Based on the drafts circulated for public comment, the AML amendments will address the following three issues: (1) to incorporate new rules that have been previously included in the administrative guidelines such as those regulating the platform economy; (2) to improve the AML procedures including special prohibitions for facilitating the conclusion of anti-competitive agreements; (3) to increase the deterrence effect of the AML by increasing the fines and other penalties for infringement of its provisions.

Second, China's anti-monopoly regulator, the State Administration for Market Regulation (SAMR), has stepped up its enforcement activities. Earlier in 2021, the SAMR penalized Alibaba for implementing the anti-competitive "choose one from two" practice and the company was fined 18 billion yuan.

The provincial branches of the SAMR have also accelerated AML enforcement on the local level. For example, the Shanghai AMR concluded two high-profile cases in the digital economy sector by prosecuting online platforms offering food delivery services in the city.

The SAMR also concentrated AML enforcement in the sectors particularly relevant to people's livelihoods: pharmaceuticals, public utilities, automobiles and building materials. In May 2021, Wu Zhenguo, director general of the SAMR, was interviewed by the American digital magazine Antitrust Source. He underlined the following priorities for the anti-monopoly agency: (1) to strengthen anti-monopoly law enforcement in key sectors; (2) to improve the anti-monopoly legal system; (3) to strengthen the foundational position of competition policy.

Third, the Anti-Monopoly Commission (AMC) of the State Council, a high-level coordinating body overseeing the overall formulation and implementation of competition policies, has developed a set of guidelines clarifying the application of the AML in certain domains. Notably, in February 2021, the AMC promulgated the Anti-Monopoly Guidelines for the Platform Economy, sending a clear message to online platforms that antitrust enforcement will be further activated to counter anti-competitive practices and the resulting harm to consumer interests. In the field of merger control, the guidelines instructed the SAMR to step up the assessment of concentrations on online-platform and sharing-economy sectors.

The AMC has also published guidelines addressing AML enforcement regarding the automobile sector and intellectual property rights. It is expected that the AMC will continue this work by issuing guidelines concerning anti-competitive agreements in the pharmaceutical sector and compliance guidelines for overseas business operations of Chinese companies.

Fourth, China's competition policies targeted local administrative regulations that could restrict competition and create artificial barriers for the movement of goods and services within the country. The Fair Competition Review system established in 2016 requires governments at national, provincial, municipal and county levels to conduct a prior assessment of their regulations and policies that may have an effect on market competition. The SAMR and its provincial branches have continuously advised local governments on implementation of this system and offered technical training to the relevant officials.

A similar system was promoted in the digital economy sector. After penalizing Alibaba for exclusionary anti-competitive practices, the SAMR issued an "administrative guidance letter" requiring the company to set up a robust anti-monopoly compliance mechanism with both internal and external checks. Following the Alibaba case, the SAMR, jointly with the Cyberspace Administration of China and the State Taxation Administration, summoned 34 leading tech firms and urged them to improve the internal anti-monopoly compliance systems.

All these legislative and administrative developments illustrate a clear trend in enhancing AML enforcement in China, particularly in the digital economy and the sectors bearing special importance for the livelihoods of consumers. In addition to rigorous AML enforcement, the Chinese authorities significantly contribute to the creation and implementation of other policies aiming at protecting fair market competition with a focus on anti-monopoly compliance and self-assessment. The Guiding Opinions on strengthening AML compliance and further promoting the implementation of fair competition policies adopted by the Central Committee for Comprehensively Deepening Reform will further coordinate the anti-monopoly work.

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