Recently, in the Fifth High-Level Forum of China’s Financial Reform, supervisory and regulatory officials from departments such as the CIRC, CSRC, CBRC, People’s Bank of China and Ministry of Finance, indicated the CIRC and CBRC have reached consensus on a pilot investment project. The project will concern investment in the insurance industry by 4 large banks allowing for some breakthrough in the Mixed Management of Banking Industry in China.

 

Continue Reading Chinese Banks Attempt to Invest in the Insurance Industry

On March 4th 2009, attorney Zhou Ze filed a claim in Beijing Dongcheng District Court. He accused China Mobile and Beijing Mobile of abusing their dominant market position (DMP) and price discrimination. The court has accepted the case and the hearing will be in the near future. For China mobile, the largest domestic mobile phone operator and the world’s largest operator by subscribers, it is the first time an Anti-monopoly suit has been brought against the company.

 

Continue Reading China Mobile under Anti-monopoly Law Suit

When referring to the anti-monopoly authority in China, many first mention the Ministry of Commerce of the People’s Republic of China (MOFCOM). However, based on the provisions of the Anti-monopoly Law of the PRC (AML) and the power allocated by the State Council, the State Administration for Industry and Commerce (SAIC) will play a primary role in AML enforcement.

 

Continue Reading China’s SAIC and the Enforcement of the AML

The following is an excerpt from a recent interview on China’s Anti-monopoly law conducted with Dr. Zhan Hao. The interview below briefly analyzes some of his comments and questions concerning China’s stride towards a form of competition law.

Continue Reading Comments on China’s new Anti-Monopoly Law (Anti-trust/Competition

With the rapid growth of the Chinese economy, international business between foreign companies and Chinese companies is commonplace. The presence of dispute is inevitable. Should a commercial dispute arise concerning international trade in China, there is enormous potential for complex legal problems to arise. For example, the party may suffer a large loss; and questions arise as to where in China the lawsuit should be brought and whether a judgment is binding. Parties need to know whether their rights will be protected. Arbitration presents itself as a practical alternative to the traditional mode of courts.

 

Continue Reading Arbitration in China: Benefits of an Arbitration Clause

Since the Ministry of Commerce (MOFCOM) promulgated its decision to block the acquisition of Huiyuan Juice Group by The Coca-Cola Company, the decision has been subject to tremendous criticism from trade lawyers and economists. Some have argued China appears willing to wield its Anti-monopoly Law to fend off foreign attempts at buying promising domestic firms (though Huiyuan was incorporated in the Cayman Islands), even when the resulting market concentration would not be excessive.

 

Continue Reading Coca-Cola & Huiyuan: Explanation, Theory, An attempt to Rationalize?

According to the Administration of Stock Investments by Insurance Institutional Investors Tentative Procedures issued by the CIRC on December 24th 2004, institutional insurance investors may engage in or entrust a qualified institution to engage in the trading of stocks, convertible corporate bonds and a range of other securities.

 

Continue Reading Expanding Investment Channels for Chinese Insurance Funds

Last year, China Insurance Regulatory Commission (CIRC) promulgated the Guidelines on the Operation of the Board of Directors of Insurance Companies (hereafter refers to the Guidelines) whose provisions are, comparing with the Guiding Opinion on Regulating the Corporate Governance of Insurance Companies promulgated in 2006, more specific in many aspects such as the qualification of directors, the operation of directors board and its professional committee, secretary and assistant institutions of the directors board, corporate governance report, etc. The Guidelines, together with the Interim Measures for the regulation of Insurance Companies’ Independent Directors and the Interim Measures for the regulation of Affiliate Transaction of Insurance Companies, composes the primary system of the board of directors of insurance companies.

 

Continue Reading China CIRC Strengthens the Board of Directors System of Insurance Companies

On January 7 2009 the Ministry of Commerce (Mofcom), in hope of receiving comments, published draft guidelines for the demarcation of the relevant market.

Lack of detailed guidelines for the demarcation of the relevant market is a primary criticism of the PRC Anti-monopoly Law (AML) and its enforcement. Relating to the definition of the relevant market, there has been a tremendous difference in opinion amongst Chinese experts, including legal consultants and economists. The gap between such opinions is far too wide for consolidation. Thus, the State Council has intentionally ignored the demarcation of the relevant market in regulations following the AML concerning notification of concentrations.
 

Continue Reading The First Steps toward Economic Analysis of the AML

On August 1, the Chinese Anti-monopoly Law (AML) was enforceable and four plaintiffs filed an anti-monopoly case in the No1 Intermediate People’s Court of Beijing. Some members of the media and laymen cheered it as the first anti-monopoly private litigation in China.

The plaintiffs were four anti-counterfeiting companies who sued the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), an industry regulator. The original four plaintiffs were later joined by four other anti-counterfeiting Chinese companies from across the country . Claiming AQSIQ violated the AML, due to its efforts to popularize an online network.
 

Continue Reading Private Litigation – Unresolved Problems of China’s Anti-Monopoly Law