International Law

China?s Muscular Competition Law

By Stan

Excellent article in the Financial Times on the still-relatively new Anti-monopoly Law. Part of the article is a standard “You (foreign companies) really need to sit up and take notice of this new law,” complete with quotes from foreign lawyers about why this is so important — and, I suppose, why you need to consult your friendly neighborhood international law firm for advice.

The rest of the article is good stuff, though, particularly the writeup of the latest important anti-monopoly decision involving Mitsubishi and Lucite. Highly recommended reading.

China?s revamped anti-monopoly regime has quickly become among the most muscular in the world and companies engaged in global deals ignore it at their peril, competition lawyers have warned.

The country?s ministry of commerce (Mofcom) has made three landmark decisions involving foreign companies since new laws were introduced last August, two of which related to global deals with limited connection to China.

The latest ruling, issued last week, approved the $1.6bn acquisition by Japan?s Mitsubishi Rayon of Lucite International of the UK but with several stringent terms.

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Full post as published by China Hearsay on May 04, 2009 (boomark / email).