Wednesday, May 6, 2009
Posted by D. Daniel Sokol
ABSTRACT: China's AML has been in effect for less than a year. The enforcement authorities are progressing with respect to structure and regulations. The Coca-Cola-Huiyuan decision has aroused concern that the competition provisions are being applied in a manner that is biased against foreign acquirers of Chinese companies.
This should not be construed as a more general trend to disfavor foreign investment, however, as MOFCOM in particular has recently promulgated measures to simplify some foreign investment approval procedures and the Chinese government has spoken out strongly against protectionism. The AML moreover appears to be having a pro-competitive impact in some respects as shown with regard to the insurance industry.