New Measures to Safeguard Fair Competition in China: What Global Businesses Need to Know
China has unveiled a comprehensive set of measures to enhance the enforcement of its Fair Competition Review Regulations, with the aim of safeguarding a level playing field for all market participants and accelerating the establishment of a unified national market. The State Administration for Market Regulation (SAMR)released the Implementation Measures of the Fair Competition Review Regulations on March 18, 2025, which will officially take effect on April 20. These measures are expected to have a significant impact on both domestic and international businesses operating in China.
Strengthening Compliance and Accountability
The new measures, comprising 48 articles, are designed to strengthen the practical enforcement of the Fair Competition Review Regulations introduced last year. These regulations were originally enacted to prevent administrative policies from unfairly limiting market access or competition. The updated measures further specify the responsibilities of local and central authorities, setting a clear framework for compliance and ensuring consistency across the nation.
A key highlight is the refinement of review standards, which address potential market distortions across four primary areas:
1.Market Entry and Exit Restrictions: Preventing administrative policies from creating unnecessary barriers.
2.Free Flow of Goods and Factors: Encouraging unrestricted movement of products and production elements across regions.
3.Business Operating Costs: Mitigating policies that could lead to excessive financial burdens on companies.
4.Business Conduct Regulations: Ensuring that policies do not disproportionately affect how businesses operate.
To enhance clarity, the new measures break down these four broad standards into 66 specific scenarios, helping regulators and policy drafters accurately identify potential competition distortions. Furthermore, the concept of “reasonable implementation periods”and “less restrictive alternatives”is more clearly defined to avoid abuse of exceptions, thereby protecting competitive neutrality.
A Robust Supervision Framework
The updated regulations also strengthen the oversight mechanism by outlining explicit procedures for public consultation and stakeholder engagement during the review process. This approach not only encourages transparency but also actively involves affected parties in shaping fair competition policies.
In addition, the measures introduce a monitoring and enforcement system to address non-compliance, including:
·Supervisory Spot Checks: Random evaluations of policy compliance.
·Reporting and Investigation Mechanisms: Clear channels for businesses to report unfair practices.
·Remedial Actions: Including corrective recommendations, formal reminders, and administrative advice.
·Alignment with Anti-Monopoly Law: Establishing a coherent legal framework to reinforce anti-competitive regulation.
Opportunities and Challenges for International Businesses
China's new fair competition measures signal a stronger commitment to reducing regional disparities and promoting a unified market. For multinational companies, this means heightened compliance demands but also greater policy consistency across regions. The breakdown into 66 specific scenarios offers clearer guidelines, but businesses must stay vigilant about updates and proactively align their practices to avoid regulatory risks.
While stricter oversight may seem daunting, the enhanced transparency and predictability can benefit companies with cross-regional operations. Engaging in public consultations and building robust compliance frameworks will be key to navigating the new landscape while capitalizing on a more standardized business environment.
Key Takeaways for Global Stakeholders
These new measures offer a double-edged opportunity: on one hand, the potential for greater market stability through standardized regulation; on the other, the challenge of maintaining stringent compliance. To thrive, global businesses should prioritize risk assessments and establish strategic partnerships with local experts. Active engagement with regulatory updates will help mitigate potential pitfalls and maximize the benefits of a more consistent and fair competitive environment.
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