THE FRAGMENTATION OF ENFORCEMENT POWERS UNDER CHINA’S ANTi-MONOPOLY LAW OF 2007

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Chinas Anti-Monopoly Law was adopted on August 30, 2007 for the purposes of furthering the establishment of a strong and integrated domestic market, increasing Chinese enterprises competitiveness in the context on Chinas accession to the World Trade Organization, and defending consumers rights.  It was certainly an important gesture, directed both outward, towards the international community and multinational enterprises, and inward, towards powerful market actors such as State-Owned Enterprises and regional champions, trade associations, local administrations. Yet, it failed at reforming the structures in charge of implementing competition policies in China.  The Anti-Monopoly Law of 2007 consecrated the division of powers between three administrations, the NDRC, the SAIC, and the Ministry of Commerce, and between central and provincial level of administration.  Nevertheless, contrary to the early predictions of scholars and lawyers, the AML is implemented. After a slow start, the enforcement authorities have been investigating and closing cases, and they are evolving in order to become more effective. Regional disparities exist, with regards to their level of activities.  Otherwise, the SAIC appears to rely on its provincial offices, whereas the NDRC has been more implicated and could qualify for a leading position if the antitrust structures were to be reformed and merged into an unique agency.  Indeed, even though the different decisions published have been coherent with each other so far, the enforcement authorities would increase their efficiency, and their credibility if they were to be united. A better coordination and diffusion of awareness of the law is necessary, and the unification of the enforcement resources under an unique agency or coordination body would be ideal. In any event, the relation between administrative and judiciary enforcements should also be clarified.  This essay focuses in particular on the role of the NDRC and the SAIC, as they have similar mandates under the AML, and their local counterparts, in the implementation of the AML, and the diffusion and standardization of competition norms and policies across China.  
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