Currently, there is an absence of legislation in China concerning gun jumping in the context of mergers and acquisitions. However, the Anti-monopoly Law (AML) could potentially be utilized as mode to curb and or prohibit gun jumping in the future. The following will attempt to analyze how the AML may be used in relation to gun jumping in the future.
Continue Reading CHINA: “Gun Jumping” and the Anti-monopoly Law (AML)
In China and according to the Organic Law of the People’s Courts, judicial powers are exercised by the courts at four levels:
(i) Basic People’s Court: Courts at the county or district level. Tribunals may also be established in accordance with local practice;
(ii) Intermediate People’s Court: Prefecture level courts;
(iii) Higher People’s Court: Provincial level courts.
(iv) The Supreme People’s Court: the highest court in the judicial system located in Beijing. The court is directly responsible to the NPC and its Standing Committee. The court supervises the administration of justice by the People’s Courts at various levels. Additionally, the court provides interpretations of law which play an important role in the application of law and which act as guidelines for trials in China.
Continue Reading An Introduction to China’s Judicial System: the Courts
Last week, SAIC promulgated two draft regulations relating to China’s Anti-monopoly Law. The new regulations concern abuse of dominance and monopoly agreements.
A prohibition on anti-competitive monopoly agreements and a prohibition against the abuse of market dominance are two of AML’s main prongs; the third being a review of concentration. However, under the AML, the provisions of these two categories lack detail as they are only covered through the broad principles of China’s competition law. Hence, the new draft regulations are welcomed as a mode to increase the detail of and to further develop China’s competition law. Furthermore, substantial private litigation has emerged challenging the abuse of dominance and monopoly agreements. Therefore, SAIC’s promulgation of the two drafts is a welcomed response to this rising trend.
Continue Reading New Draft SAIC Regulations: Positive Affects for the AML
Another hotspot related to this case is national security issue.
The opponents argued that this concentration will threat the national security of our country. Huiyuan is a well-known domestic brand in Chinese juice beverage market. According to a survey made by AC Nielson, pre-concentration, Huiyuan’s market share in pure juice beverage market and middle-level concentration juice beverage market reached 42.10% and 43.60% respectively. If Huiyuan was acquired by Coca-cola, a foreign giant in soft drink market, this domestic brand will suffer the same fate as those who have been acquired by foreign corporations: disappear in the market. At that time, Chinese juice beverage market will be monopolized by foreign enterprise. It will be a huge threat to China’s economic and food security.
Continue Reading Landmark case: Coca-cola & Huiyuan Concentration(2)
First, it is no doubt that this case has become a landmark case in the developing history of China anti-monopoly law. There are four points I should address under my first topic as to why this case is so significant to China AML.
Continue Reading Landmark case: Coca-cola & Huiyuan Concentration(1)
The insurance market in China is growing at an unprecedented rate. Cultural norms towards insurance have begun to change regardless of the intangible nature of insurance and a substantial portion of this growth has arrived through foreign investment. Foreign investors continue to increase their share of the Chinese market regardless of the current economic downturn. Compared with other financial sectors, the insurance market is the most accessible in China, however, such investors will ultimately face fresh challenges from the banking sector due to the present state of credit markets and the regulatory environment surrounding Chinese insurance businesses is uninviting. In order for potential investors to gauge prospective returns, one must hold an understanding of the hurdles associated with such forms of investment on the Mainland of China. The following will attempt to outline some of the major hurdles faced by current and prospective investors in China’s insurance market. By no means is this account to be exhaustive, rather its purpose is to provide general insight and awareness. Given the importance of due-diligence, considering the past errs within the market, current and prospective investors must be aware of the current regulatory environment.
Continue Reading Major Hurdles Of Foreign Owned Insurance Businesses in China
Last week, I received an email from an American attorney, whose client encountered some problems concerning their insurance policy, a policy purchased from two Chinese Insurance Companies. In his email, he informed me that after the occurrence of an accident which was suppose to be covered in the insurance policy, the Chinese Insurance Companies refused to compensate his client. The insurer and the insured had different understandings of the policy clause. He wanted to know whether his client could seek help from the CIRC and if so, how they should go about doing so in China. In his email, some provisions in the Guideline of the Management of the Insurance Company issued by CIRC were quoted to inform me the CIRC functioned similar to the SEC in the US. I informed him the CIRC could not help, his client should bring this case to court or if there is an arbitration clause in the policy, the dispute could be arbitrated in the arbitration commission agreed by the parties.
Continue Reading The CIRC and Its Local Offices: Functions and Responsibilities
Last week, the so-called first case of abuse of dominant market position (DMP) was heard by the Beijing First Middle-level court. This time, the famous Chinese search-engine Baidu was brought under the sword of China’s Anti-monopoly law (AML).
Continue Reading Baidu Denies Charge of Dominant Market Position
1. The dilemma in the contractual cooperation between banks and insurance companies
Generally speaking, the mode of mixed operation is still under exploration and the driving force mainly originates from the spontaneous market.
The cooperation between banks and the insurance sector remains on the level of contractual agreement between insurance companies and banks. Such cooperation only involves certain activities in which banks conduct the following for insurance companies; charging insurance premiums, disbursing insurance amounts and selling insurance products.
Continue Reading Institutional defects of China divided operation
