Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

Start by selecting your Topic of interest below. Then choose your Regions and finally refine the exact Subjects you are seeking clarity on to view detailed analysis provided by our carefully selected internationally recognised experts.

4. Results: Answers
Merger Control
7.
Penalties and sanctions
7.1
If notification is mandatory, what sanctions may be imposed for failure to notify? In practice, does the relevant authority frequently impose sanctions for failure to notify?
China

Answer ... Failure to notify may incur a fine of up to RMB 500,000. The filing parties may also be ordered to take all necessary measures to unwind the transaction.

In practice, the Anti-monopoly Bureau of the State Administration for Market Regulation (SAMR) is issuing an increasing number of penalty decisions for failure to notify and is also seeking to increase the cap on the fine.

For more information about this answer please contact: Yi Jin from King & Capital Law Firm
7.2
If there is a suspensory obligation, what sanctions may be imposed if the transaction closes while the review is ongoing?
China

Answer ... Yes. If the transaction closes while the review is ongoing, the sanctions will be as same as those for failure to notify.

For more information about this answer please contact: Yi Jin from King & Capital Law Firm
7.3
How is compliance with conditions of approval and sanctions monitored? What sanctions may be imposed for failure to comply?
China

Answer ... In general, the SAMR is responsible for the supervision of the implementation of the remedies approved. In addition, in cases where divestments are required, the monitoring trustee approved by the SAMR will undertake this responsibility and report on fulfilment of the remedies to the SAMR.

If the parties fail to comply with the remedies, the SAMR may require corrections by a certain deadline. If the infringement is grievous, the SAMR is entitled to issue an order requiring the parties to:

  • cease implementation of the transaction;
  • dispose of certain shares or assets by a certain deadline;
  • transfer the business by a certain deadline; or
  • pay a fine of up to RMB 500,000.

For more information about this answer please contact: Yi Jin from King & Capital Law Firm