Companies: beware dawn raids in China

Author: | Published: 1 Jul 2009

Companies with operations in China should prepare for dawn raids, as the State Administration for Industry and Commerce (SAIC) publishes its first procedural rules on the investigation of suspected cartels and abuses of dominance.

On Friday, the regulator issued Procedural regulations on the investigation of monopolistic agreement and abuse of dominant market position and Procedural regulations on the prevention of abuse of administrative power and competition restriction.

While the latter lacks teeth, the former (effective from July 1) indicates that SAIC will soon begin to aggressively pursue investigations.

"Prepare for dawn raids by the regulator and be aware that potential fines will take a...