China's State Administration for Market Regulation released the Implementation Measures for the Fair Competition Review Regulations ("the Measures") on 18 March 2025. The Measures aim to strengthen the enforcement of the Fair Competition Review Regulations ("the Regulations") that came into effect in August 2024 for building a unified national market with fair order.
The Measures will officially take effect on 20 April 2025 and consist of 48 articles and provide detailed guidelines under the framework of the Regulations. Key points include:
- Clarifying general requirements – specifies the scope of fair competition review, the role of market regulators at various levels, and the duties of policy-drafting entities (organizations in management of public affairs authorized by administrative organizations, laws or regulations) to implement and improve the review framework.
- Refining review standards – elaborates the four main review criteria – market entry and exit restrictions, restrictions on the free flow of goods, and impact on costs and activities of production and operation – into 66 detailed scenarios to ensure clarity and prevent improper application of exceptions.
- Optimising review mechanism– sets up specific requirements for the review process, including how to receive comments from relevant stakeholders and how market regulators should coordinate with drafting entities.
- Strengthening supervision and safeguards– improves complaint handling process, establishes random check mechanism, and stipulates corrective actions such asurge rectification, interviews, written reminders and administrative recommendations. It also aligns with antitrust laws to ensure accountability and ensure the effective implementation of the system.
It is noted that the Measures establish clear standards for local governments to implement the Regulations and introduce review and supervision measures to ensure effective enforcement by relevant entities. They work to establish market fairness by preventing local protectionism and discriminatory policies against non-local or imported goods to facilitate the free flow of goods and resources across broader regions. They aim to play a vital role in stabilising market expectations, boosting business confidence, and supporting sustained economy development.
The State Administration for Market Regulation is amending the "Provisions on Curbing Abuse of Administrative Power to Eliminate or Restrict Competition", which focus on improving enforcement procedures, accountability, and targeted effectiveness. The draft amendment will be released for public comment in due course.
From various regulations and measures in recent years and in future, we can see the Chinese government's ongoing efforts to foster a transparent and equitable market environment, while preventing policies that hinder fair competition.
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