Yet more uncertainty

Author: | Published: 1 Oct 2007

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...