China: China Monthly Antitrust Update - September 2016


State Council Publishes the Working Scheme to Lower Costs for Real Economy Enterprises

On 22 August, the State Council published the Working Scheme on Reducing Cost of Real Economy Enterprises ("Scheme"), which is aimed at alleviating difficulties of real economy enterprises effectively, helping enterprises on transformation and upgrading, and taking measures to lower costs for real economy enterprises. The Scheme includes that the State Council will devote on reducing institutional transaction costs with efforts to break regional blockade and industry monopoly and strengthening development of market circumstance of fair competition; the State Council will further reduce land costs of enterprises, impel revolution in energy field and deregulate price in competition area; and the State Council will carry out supporting measures on reducing costs, strengthen regulations in respect of antitrust, anti-unfair competition, IP protection, quality safety supervision, etc.1

Jiangsu Government Issues Opinions on Implementing the Fair Competition Review System

On 22 August, People's Government of Jiangsu Province issued the Opinions on Implementing the Fair Competition Review System of Jiangsu Province ("Opinions"). According to the Opinions, regulations, normative documents, policies and measures that have bearing on the business of market participants as well as drafts of local laws and regulations that requested for review by the People's Congress, etc., should be reviewed in terms of fair competition during drafting process. Policymaking departments should enforce self-review strictly according to the review standard during policies and measures making process. Policies, measures and relevant documents are banned to be issued until reviewed in terms of fair competition. Meanwhile, the Opinions set deadlines for government departments of Jiangsu at all levels to clear and abolish the relevant regulations and measures that obstruct unified market and fair competition.2

State Tobacco Monopoly Administration and China National Tobacco Corporation Publish Opinion to Establish Fair Competition Review System in Tobacco Industry

On 17 August, the State Tobacco Monopoly Administration and China National Tobacco Corporation published an opinion, which requires establishing fair competition review system in tobacco industry. Tobacco monopoly bureaus and tobacco corporations at all levels and other relevant departments should enforce fair competition review while enacting normative documents, policies and measures related to market entry, tendering and biding, operation standard, etc., that have bearing on the business of market participants, should take laws and regulations as final review standard and should combine self-review with external supervision.3

NDRC Publishes Internal Working Procedure of Implementing Fair Competition Review System

On 27 July, the National Development and Reform Commission ("NDRC") published the Notice of Internal Working Procedure on Implementing the Opinions on Establishing the Fair Competition Review System in Market System Development, which requires all departments of NDRC to conduct self-review according to the principle that "whoever formulates a policy shall be responsible for policy clean-up"; all departments can solicit opinion from the Price Supervision and Inspection and Anti-Monopoly Bureau if deemed necessary; all departments should submit the conclusion of fair competition review while submitting the relevant policies and measures to Laws and Regulations Department for legal review.4

Guangdong Province Will Enforce the Fair Competition Review System Stepwise

On 25 July, People's Government of Guangdong Province published the Notice of People's Government of Guangdong Province on Transmitting the Opinions on Establishing the Fair Competition Review System in Market System Development("Notice"),which requires government departments of Guangdong at all levels to accelerate the establishment and enforcement of the fair competition review system. The relevant departments at provincial level must enforce fair competition review in enacting process of policies and measures from July 2016, while governments and departments of city and county level should enforce fair competition review gradually from 2017. The Notice requires government departments of Guangdong at all levels, at the same time, to clear and abolish orderly the relevant regulations and measures that obstruct unified market and fair competition, as well as complete the relevant working mechanism.5


NDRC, SAIC and MOFCOM Launch Surveys about Fair Competition Review System in Several Provinces

China's antitrust enforcement authorities (NDRC, the State Administration for Industry and Commerce("SAIC")and the Ministry of Commerce ("MOFCOM")) conducted on-site surveys on the fair competition review system in Chongqing, Tianjin, Hebei, Sichuan, Hunan, etc. since 16 August. Survey groups carried out surveys in respect of the implementation of the fair competition review system and the development of the fair competition market circumstance, discussed with delegates of government departments, industry associations and enterprises in terms of basic circumstances of market competition within industry and listened to their suggestions and opinions.6

The First Phase of the Training Program of Price Supervision and Antitrust Enforcement Graduation Ceremony Held at CUPL

On 12 August, the first phase of the training program of price supervision and antitrust enforcement graduation ceremony was held in International Communication Center of Changping campus of China University of Political Science and Law ("CUPL"). Mr. Chen Zhijiang, Deputy Director-General of the Price Supervision and Inspection and Anti-Monopoly Bureau ("PSIAMB"), Mr. Chen Da and Mr. Liu Jian, Director and Deputy Director of the General Office of PSIAMB, Mr. Shi Jianzhong, Deputy President of CUPL, Ms. Zhang Xiaoqin, Deputy Dean of CUPL's School of Further Education, attended the commencement. The training program was held for improving enforcement ability of antitrust enforcement authority so as to better preserve fair competition order of market and protect legitimate rights and interests of consumers. The second phase will be held from 28 August to 23 September.7

CEB of SAIC Meets a Delegation from China Gas Association

On 3 August, the Anti-Monopoly and Anti-Unfair Competition Enforcement Bureau ("CEB") of SAIC met a delegation led by Mr. Chi GuoJing, Secretary-General of China Gas Association ("CGA"). CEB introduced the status of the special enforcement implemented by AICs against public utilities which restrict competition and commit monopolistic conduct. Both sides exchanged opinions and discussed on existing problems which are suspected of monopoly and anti-unfair competition in gas industry. It was expressed that CGA will support the special enforcement by SAIC actively, organize self-review of members, rectify irregular issue discovered and reinforce self-discipline within industry in future. CGA was, meanwhile, looking forward to receiving more guidance from SAIC towards business operation in gas industry.8

Jiangsu AIC Supervises the Special Enforcement Action against Public Utilities

From 12 July to 20 July, the Administration of Industry and Commerce of Jiangsu Province ("Jiangsu AIC") composed 5 inspection teams for supervising the special enforcement action to rectifying the conduct of competition restriction and monopoly by public utilities. Jiangsu AIC held a meeting to brief the supervision and brought up new requirements for the future work.9


Sichuan AIC Holds an Analysis Meeting on Representative Cases in the Enforcement Campaign against Public Utilities

On 26 August, the Administration of Industry and Commerce of Sichuan Province ("Sichuan AIC") held an analysis meeting on representative cases in the enforcement campaign against public utilities. The status of play of the enforcement campaign against public utilities in Sichuan Province was communicated, difficult issues in individual cases were discussed and further requirements on the next step work were put forward during the meeting. Officials of SAIC also attended the meeting.10

Hubei AIC Fines Insurance Industry Association for Monopoly Agreement

On 16 August, SAIC released penalty decision imposed by the Administration of Industry and Commerce of Hubei ("Hubei AIC") on Insurance Industry Association of Hubei Province for organizing industry participants to implement monopoly agreement. Hubei AIC found that since May 2003 the Insurance Industry Association of Hubei Province organized 27 insurance companies to conclude monopoly agreement on dividing up the new car insurance market, which violates Article 16 of the Anti-monopoly Law("AML"). Hubei AIC imposed penalties of RMB 200,000 on the Insurance Industry Association of Hubei Province.11

Shanghai Price Bureau Fines Three Home Appliance Selling Companies for RPM

On 12 August, the Development and Reform Commission of Shanghai released penalty decision imposed by Shanghai Price Bureau on Chongqing RRS Household Appliances Selling Company (Shanghai branch), Chongqing Haier Electronics Selling Company (Shanghai branch)and Chongqing Haier Household Appliances Selling Company (Shanghai branch) ("Parties") for committing monopoly agreement. Shanghai Price Bureau uncovered that the Parties concluded and implemented agreements on maintaining resale price towards third parties, which violates Article 14(2) of the AML and Article 8(2) of the Provisions against Price Monopoly. Shanghai Price Bureau fined the Parties RMB 12.348 million in total.12


MOFCOMReleases25 Streamlined Cases in August

Up to 31 August 2016, MOFCOM has released 25 streamlined cases in August on its website, with total amount reaching 506 so far.13

MOFCOM Commented on the Didi&Uber China Merger Filing Issue for the second time

On 17 August, Mr. Shen Danyang, the spokesperson of MOFCOM commented on the Didi&Uber China merger filing issue for the second time during the routine press conference: Enterprises shall calculate turnover according to relevant regulations strictly and make filing in advance to MOFCOM; enterprises shall take responsibility if they implement the concentration without merger filing while the concentration reaches the filing threshold; if the concentration of enterprises leads, or may lead, to elimination or restriction of competition which is indicated from the fact or evidence collected in accordance with regulations, MOFCOM shall carry out investigation according to law seven though the concentration doesn't reach the thresholds.14


Accounting Firms File an Administrative Litigation against Antitrust Penalty Imposed by Shandong AIC but Lose the First Instance

On 11 August 2016, a first-instance judgment made by Lixia district court in Jinan of Shandong Province upheld the penalty decisions made by the Administration of Industry and Commerce of Shandong Province ("Shandong AIC") towards a cartel among accounting firms. In August 2014, Shandong AIC investigated the cartel engaged in by Hongcheng Accounting Firm, etc., and made penalty decisions towards 23 accounting firms in March 2016. In May, seven accounting firms involved in the cartel filed an administrative litigation against Shandong AIC for revoking the penalty decision. Upon trial, the court found that Shandong AIC has complied with the administrative penalty procedures and collected sufficient facts and evidence, and also has applied laws and regulations rightly. Then the court dismissed the claims of the plaintiffs.15


Jet Deng Interviewed on the Didi&Uber China Merger Filing Issue by Several Media

On 1 August 2016, Didi announced acquisition of all assets of Uber China, including its brand, business operations and data. Jet Deng, Senior Partner of Dentons China Antitrust Team, was interviewed on the high-profile merger filing issue in this transaction by domestic and foreign media including Southern Metropolitan Daily, China, Tencent Finance and Bloomberg. Jet Deng commented that whether the Didi&Uber China merger needs to undergo China's merger filing procedure depends on whether the filing thresholds of China are met, which in turn depends on how to calculate the turnover of the merging parties. Separately, if MOFCOM carries out antitrust review, it will focus on how significant the market power of the merging parties will be, which is often indicated by the combined market share. In this regard, relevant market needs to be first defined, which will consider whether the car-hailing service provided by Didi and Uber can be substituted by other similar services.

















Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Events from this Firm
6 Dec 2017, Webinar, New York, United States

Join Dentons for a complimentary webinar focused on the ongoing challenge of integrating new technologies into existing information governance policies and risk management frameworks.

24 Jan 2018, Seminar, San Francisco, United States

Dentons will host our Fourth Annual Courageous Counsel Leadership Institute in January, centered on the theme "Cultivating Innovation."

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.