Wednesday, December 14, 2011
Posted by D. Daniel Sokol
Xinzhu Zhang Chinese Academy of Social Sciences and Global Economics Group & Vanessa Yanhua Zhang Renmin University of China, Global Economics Group have written on China's Merger Control Policy: Patterns of New Development.
ABSTRACT: Antitrust is one of the most important policy instruments used by policymakers to promote competition in modern market economies. It has profound impacts on industrial structure, corporate governance and firm behavior. Indeed, it was with this vision that, after thirteen years of incubation, the Chinese government finally enacted the Anti-Monopoly Law (“AML”). The AML comes at a time when China’s economy is in the transition from a centrally-planned economy to a market economy. In a previous paper published in 20101, we discussed the patterns of China’s merger control policy and analyzed its future implications. There have since been new developments in the policy. With more provision rules and regulations being issued, and more merger cases being reviewed, MOFCOM, China’s merger control agency, is building its capacity to deal with cases more efficiently and effectively.
The released case decisions and the filing processes we have participated in (either as independent economists for MOFCOM, or as economists for filing firms preparing competition analysis reports) seem to suggest that some enforcement patterns are emerging. These patterns provide important implications for understanding MOFCOM’s enforcement policy in the future. In this paper, we seek to explore the patterns that those case decisions have implied, and that we have encountered in our case filing experiences.