The promulgation of the PRC Anti-Monopoly Law by the Chinese
legislature on August 30 2007 heralds a new phase in Chinese
competition law. Under the new law, M&A in China, the
volume of which has increased dramatically since China entered
the WTO, will be subject to more stringent governmental review.
Below are the key implications for foreign investors.
China first introduced merger control in 2003 with the
passage of the Provisional Regulations for the Acquisition of
Domestic Enterprises by Foreign Investors, effective from April
12 2003 and later revised on September 8 2006 (M&A
Regulations). Unlike the Anti-Monopoly Law, which was enacted
by China's top law-making body, the National People's Congress
(NPC), the M&A Regulations were issued at a ministry level
and do not contain penalties for failing to notify. In the
future, foreign investors will have to concern themselves with
a stricter merger control regime and, in...