Monday, October 24, 2011
The Application of Chinese Competition Law to Foreign Mergers: Lessons from the Draft New Guidelines
Posted by D. Daniel Sokol
Markus Masseli (Volkswagen Financial Services AG) has authored The Application of Chinese Competition Law to Foreign Mergers: Lessons from the Draft New Guidelines.
ABSTRACT: After three years of application, the impression remains that Chinese merger law only applies to foreign mergers and that domestic mergers remain uncontrolled. As regards foreign mergers, the control classically follows an economics-based approach centring on unilateral and coordinated effects which also extends to vertical and diagonal merges. Besides typical factors such as market concentration, market entry, efficiency defence and failing company defence, MOFCOM again made it quite clear, that industrial policy is on the agenda.