Great news for Chinese insurance industry is from CIRC’s Chairman Mr. Wu Dingfu. In a recent press conference in January 2011, Mr Wu introduced the situation of the development of the Chinese insurance market, during his speech he said, in the last 5 years, the insurance premium income of the country has increased 24.2% per year on average and has reached 720.12 billion yuan, the income from investment has been over 6% per year on average. China has become the most important newly developing country for the insurance industry where the number of insurance companies had increased by 53 since 2005 and there are now a total of 146 insurance companies in China.
SAIC regulations signal greater anti-monopoly enforcement
On November 29 2010 the National Development and Reform Commission (NDRC) promulgated one substantive regulation and one procedural regulation regarding pricerelated monopolies (for further details please see "NDRC issues new anti-monopoly pricing regulations"). To accompany these regulations, the State Administration for Industry and Commerce (SAIC) issued the Regulation on Prohibiting Monopoly Agreements, the Regulation on Prohibiting Abuse of Market Dominance and the Regulation on Prohibiting Abuse of Executive Authority to Exclude and Limit Competition on December 1 2010.
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No quick answers in instant noodle dispute
Baixiang Food Group and other instant noodle manufacturers have brought a complaint against their competitor Kangshifu, claiming that it unfairly dominates the instant noodle market in China. Kangshifu has also been accused of engaging in price dumping through its subsidiary brand Fumanduo. Kangshifu contests both assertions.
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Conditional approval for Novartis’s acquisition of Alcon
The Ministry of Commerce’s Anti-monopoly Bureau approved Novartis’s acquisition of Alcon on August 13 2010, subject to conditions.(1) The ministry accepted the filing in respect of the acquisition on April 20 2010 and decided on May 17 2010 that a further review period was needed. The ministry reviewed information on:
- the overlap of the two companies’ products in the Chinese and global markets;
- their respective market shares;
- the characteristics, applications, prices and sales methods of their products;
- the supervisory policies in the relevant market; and
- the two companies’ relationships with competitors in the market.
Opinions were sought from other companies in the field. After negotiating with the filing parties, consensus was reached on how to reduce the acquisition’s undesirable effects on competition in the relevant markets.…
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