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2006-06-09 | All chapters

Monopoly Law Will Target All
Bloomberg, 9th June 2006

A new anti-monopoly law will not single out foreign investors, a commerce official said, amid concerns multinationals would be unfairly targeted.

"This law is meant to prevent monopolies, and is not meant to target only foreign companies in China. It applies to both Chinese and foreign investors," Vice Minister of Commerce Ma Xiuhong said Thursday.

The new law follows a 2004 government report that said some foreign companies were using their dominant positions to suppress competition and maximize profits in the mainland.

The State Council approved the draft law, which will ban the domination of industries by one or two companies, China Daily reported.

"We drafted this law only after many years of considerable research," Ma said. "It is modeled after those in the United States, Europe and other developed nations."

European companies operating in China told officials they would like to play a role in the implementation of the law to ensure it was applied fairly, Giorgio Magistrelli, secretary general of the EU Chamber of Commerce, said.

"Drafting an anti-monopoly law is a step in the right direction," he said.

Click here to view the article quoted on The Standard.