Foreign‐invested companies: more risky facing up to China's anti‐monopoly law?

Abstract

Purpose

The anti‐monopoly law (AML) of the People's Republic of China (PRC), which had undergone ten years of debate among the whole spectrum of China's society, was finally issued on August 30, 2007 and took effect on August 1, 2008. This paper seeks to assess the impact of these new laws.

Design/methodology/approach

Through an examination of the latest anti‐monopoly cases since the AML came into force, this paper seeks to study the goals and regulations of the AML, and attempts to foresee features of those foreign‐invested enterprises (FIEs) who are most risky under the new Law.

Findings

The new AML, called by some scholars a “landmark of China's economic reform” and “a great achievement of international cooperation” has given birth to mass legal subjects and far‐reaching influence to business circle both explicitly and potentially(Wang, 2008). The new Law attracts concerns from many foreign companies, especially those MNCs and tycoons having business interests in China. Many foreign commentators take the Law as a positive sign for their future investment in China, whereas complaints about the uncertainties of some outstanding issues doubtless persist.

Originality/value

The study provides an insight into antitrust changes in China and signals areas of concern for potential competitors

Citation

Junfeng, L. (2009), "Foreign‐invested companies: more risky facing up to China's anti‐monopoly law?", International Journal of Law and Management, Vol. 51 No. 3, pp. 179-186. https://doi.org/10.1108/17542430910959254