Type to search

China Looking To Boost Status of Its Anti-Monopoly Bureau

Under the plan, the National Anti-Monopoly Bureau would be elevated to deputy-ministerial level, while remaining within SAMR, to help M&A investigators gain resources

Chinese President Xi Jinping, right, and former president Hu Jintao attend the closing session of the 19th National Congress of the Communist Party in Beijing in Oct 2017. Photo: Jason Lee, Reuters.

 

China is considering boosting the status of its antitrust bureau within the market regulatory agency as it steps up a campaign against anti-competitive behaviour.

Urged on by President Xi Jinping, the once low-profile State Administration for Market Regulation (SAMR) has made headlines this year with a push to root out and penalise anti-competitive behaviour, particularly in the vast online “platform” economy.

Under a new structure under consideration by the government, the antitrust bureau would become the National Anti-Monopoly Bureau and be elevated to deputy-ministerial status, while remaining within SAMR, two people with knowledge of the plans told Reuters.

The higher ranking would help antitrust investigators gain resources when examining mergers and acquisitions, the people said, strengthening their hand as Beijing seeks to rein in the power of corporate behemoths.

The proposed new structure, details of which have not been reported before, would also bolster SAMR’s in-house capability to conduct research that it has previously had to outsource, according to the people.

In April there were reports that Beijing was planning to bulk up SAMR’s antitrust workforce and delegate case reviewing power to its local bureaus.

Gan Lin, current deputy minister of SAMR, would lead the upgraded bureau within SAMR, the people said.

SAMR did not respond to a request for comment on the plans and Gan could not immediately be reached for comment.

The plan is subject to change and needs final approval of China‘s State Council, or cabinet, as well as the National People’s Congress, said the sources, who declined to be named as they were not authorised to speak with media.

 

Studying Western Models

The proposed status upgrade of SAMR’s antitrust bureau comes after Xi in March cited the need to “strengthen antitrust powers” to rein in corporate giants that play a dominant role in the country’s consumer sector.

Beijing has looked to European antitrust authorities as a model as it seeks to upgrade its antitrust capabilities, one of the people said. In August, SAMR’s antitrust office said on its website that it had invited experts from the EU and United States to hold online courses for Chinese “antitrust talents.”

“Compared to other major anti-monopoly enforcement authorities in the world, the authorities in China currently have fewer staff, which needs to be changed in the future,” Wu Zhenguo, head of SAMR’s anti-monopoly bureau, told industrial online journal The Antitrust Source in a July interview.

China has shed what was once a relatively laissez-faire approach to market regulation of the internet sector in dramatic fashion this year, including blocking mergers and imposing a record $2.75 billion fine on e-commerce giant Alibaba for abusing its market position.

This month, it levied a $527 million fine on food delivery giant Meituan, also for abusing its market dominance.

Beijing has in the past elevated the administrative status of other regulatory bodies as its governance agenda evolved. The Ministry of Ecology and Environment was upgraded from a national bureau to a ministry in 2008, and later revamped with greater powers during a 2018 governmental overhaul.

 

• Reuters with additional editing by Jim Pollard

 

ALSO SEE:

The Hit List: How China’s Crackdowns Have Cost Its Firms Billions

China Says Crackdowns Essential to Protect Markets, Tame ‘Barbaric’ Tech Growth

China Media Call Xi’s Regulatory Storm a “Profound Revolution’’

From E-Commerce to Education, China’s Season of Regulatory Crackdown

China’s Private Tutoring Overhaul Stuns Online Education Industry

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

logo

AF China Bond