China is set to implement new fair competition regulations starting August 1, aiming to create a level playing field for all market participants and establish a unified domestic market free from regional protectionism. The State Administration for Market Regulation announced the move, highlighting the country’s commitment to fostering an open and fair business environment.
According to Zhou Zhigao, an official from the administration, the regulations are designed to prevent governmental authorities from introducing measures that could exclude or limit market competition. Speaking at a press conference on Friday, Zhou emphasized that authorities will be required to conduct fair competition reviews when formulating laws, regulations, and policies related to business activities.
The reviews will cover various aspects, including market entry and exit, the free flow of goods, business operation costs, and standard practices. For instance, official policies should not impose unreasonable or discriminatory conditions on market access or restrict products from entering local markets. Without legal backing or approval from the State Council, authorities are prohibited from granting specific businesses tax breaks or providing selective incentives or subsidies.
To protect business autonomy, the regulations also prevent governments from unlawfully interfering with market-regulated price levels or exceeding their authority by setting guided prices. The goal is to eliminate market barriers and ensure that all types of capital have equal opportunities, fair access, and can compete in an orderly manner.
China established a fair competition review system in 2016 and has since intensified efforts to create a better business environment. Over the past eight years, approximately 93,000 policies and measures that limited competition have been abolished or revised, correcting practices that hindered fair access and restricted the free flow of market factors.
Xu Xinjian, another official from the administration, described the new regulations as a significant milestone. “China will be able to build a more solid foundation for a unified domestic market of fair competition,” Xu said. “This will ensure that favorable policies for all business entities are fairer and will further improve our market-oriented, law-based, and internationalized business environment.”
The introduction of these regulations signifies China’s ongoing dedication to refining its economic landscape, promoting transparency, and encouraging both domestic and foreign investment by assuring businesses of fair treatment across the board.
Reference(s):
China to bring into force fair competition regulations on August 1
cgtn.com
