On June 13, the State Council of the People's Republic of China issued Decree No.783. The Regulations on Fair Competition Review have been adopted by the 32nd Standing Meeting of the State Council on May 11, 2024, and are hereby promulgated for implementation as of August 1, 2024. Regulations on
Examination of
Fair Competition Chapter I General Provisions
Article 1 These Regulations are formulated in accordance with the Anti-monopoly Law of the People's Republic of China and other laws in order to regulate the examination of fair competition, promote fair competition in the market, optimize the business environment and build a unified national market. Article
2 When drafting laws, administrative regulations, local regulations, rules, normative documents and specific policies and measures (hereinafter referred to as policies and measures) concerning the economic activities of business operators, administrative organs and organizations authorized by laws and regulations with the functions of managing public affairs (hereinafter referred to as drafting units) shall carry out fair competition review in accordance with the provisions of these Regulations. Article
3 The review of fair competition shall adhere to the leadership of the Communist Party of China and implement the line, principles, policies and decision-making arrangements of the Party and the state.
The state strengthens the examination of fair competition to ensure that all kinds of operators use production factors equally according to law and participate in market competition fairly. Article
4 The State Council shall establish a coordination mechanism for fair competition review, coordinate, coordinate and guide the national fair competition review, study and solve major problems in the fair competition review, and evaluate the national fair competition review. Article
5 Local people's governments at or above the county level shall establish and improve the working mechanism of fair competition review, guarantee the working force of fair competition review, and incorporate the funds for fair competition review into the budgets of the governments at the corresponding levels. Article
6 The market supervision and administration department under the State Council shall be responsible for guiding the implementation of the fair competition review system and urging relevant departments and localities to carry out fair competition review. The market supervision and management departments of the local people's governments at or above
the county level shall be responsible for organizing and implementing the fair competition review system in their respective administrative regions. Article
7 The people's governments at or above the county level shall incorporate the examination of fair competition into the assessment and evaluation of the construction of a government ruled by law and the optimization of the business environment. Chapter
II Examination Standards
Article 8 The policies and measures drafted by the drafting unit shall not contain the following restrictions or disguised restrictions on market access and withdrawal:
(1) illegally setting up examination and approval procedures for industries, fields and businesses other than the negative list of market access;
(2) Illegally establishing or granting franchise rights;
(3) Restricting the operation, purchase or use of commodities or services (hereinafter referred to as commodities) provided by specific operators;
(4) Setting unreasonable or discriminatory conditions for entry and exit;
(Five) other restrictions or disguised restrictions on market access and withdrawal. Article
9 The policies and measures drafted by the drafting unit shall not contain the following contents that restrict the free flow of commodities and factors:
(1) Restricting the entry of foreign or imported commodities and factors into the local market, or obstructing local operators from moving out and exporting commodities and factors;
(2) Excluding, restricting, forcing or forcing in disguised form non-local operators to invest and operate locally or set up branches;
(3) Excluding, restricting or restricting in disguised form non-local operators to participate in local government procurement, tendering and bidding;
(4) Setting discriminatory charging items, charging standards, prices or subsidies for non-local or imported commodities or factors;
(5) Setting discriminatory requirements for non-local operators to invest and operate locally in terms of qualification standards, supervision and law enforcement;
(Six) other contents that restrict the free flow of commodities and factors. Article
10 The policies and measures drafted by the drafting unit shall not contain the following contents affecting the cost of production and operation without the basis of laws and administrative regulations or without the approval of the State Council:
(1) giving preferential tax treatment to specific operators;
(2) Give selective and differentiated financial incentives or subsidies to specific operators;
(3) Give preferential treatment to specific operators in terms of factor acquisition, administrative fees, government funds, social insurance premiums, etc.;
(4) Other contents affecting production and operation costs. Article
11 The policies and measures drafted by the drafting unit shall not contain the following contents that affect the production and operation activities:
(1) forcing or disguising the operators to carry out monopolistic acts, or providing convenient conditions for the operators to carry out monopolistic acts;
(2) Formulating government-set or guided prices beyond the scope of its statutory power and providing preferential prices to specific operators;
(3) Illegally interfering in the price level of commodities and factors of production whose prices are regulated by the market; and
(4) Other contents that affect production and operation. Article
12 The policies and measures drafted by the drafting unit have or may have the effect of excluding or restricting competition, but they meet one of the following circumstances, and there is no alternative scheme that has less impact on fair competition, and they can determine a reasonable implementation period or termination conditions. The following may be introduced:
(1) for the purpose of safeguarding national security and development interests;
(2) for the purpose of promoting scientific and technological progress and enhancing the country's capacity for independent innovation;
(3) for the purpose of realizing public interests such as energy conservation, environmental protection and disaster relief;
(Four) other circumstances stipulated by laws and administrative regulations. Chapter
III Review Mechanism
Article 13 Policies and measures to be promulgated by departments shall be subject to fair competition review by drafting units at the drafting stage. Policies and measures
to be jointly promulgated by several departments shall be reviewed by the leading drafting unit at the drafting stage. Article
14 Policies and measures to be promulgated by the people's governments at or above the county level or submitted to the people's congresses and their standing committees at the corresponding levels for consideration shall be examined by the market supervision and administration departments of the people's governments at the corresponding levels in conjunction with the drafting units at the drafting stage. The drafting unit shall carry out the preliminary examination and submit the draft policies and measures and the preliminary examination opinions to the market supervision and management department for examination. Article
15 The State encourages conditional regions to explore the establishment of a cross-regional and cross-sectoral fair competition review mechanism. Article
16 In conducting fair competition review, the opinions of relevant operators, trade associations, chambers of commerce and other stakeholders on the impact of fair competition shall be heard. Where the interests of the public are involved, the opinions of the public shall be heard. Article
17 The review of fair competition shall be conducted in accordance with the review standards stipulated in these Regulations, and the conclusion of the review shall be made after assessing the impact on fair competition. Where the provisions of Article 12 of these Regulations are
applicable, they shall be explained in detail in the conclusion of the examination. Article
18 Policies and measures shall not be promulgated without fair competition review, or if they are considered to violate the provisions of Articles 8 to 11 of these Regulations and do not conform to the provisions of Article 12 after fair competition review. Article
19 Relevant departments, units and individuals shall keep confidential the state secrets, business secrets and personal privacy they know in the process of fair competition review according to law. Chapter
IV Supervision and Guarantee
Article 20 The market supervision and administration department of the State Council shall strengthen the supervision and guarantee of fair competition review, establish and improve the mechanism of fair competition review, spot check, report handling and supervision. Article
21 The market supervision and management department shall establish and improve the mechanism of fair competition examination and spot check, organize spot check of relevant policies and measures, and urge the drafting unit to rectify the violation of the provisions of these Regulations.
The market supervision and management department shall report the spot check to the people's government at the corresponding level, and the results of the spot check may be made public to the public. Article
22 Any unit or individual may report to the market supervision and management department any violation of the policies and measures stipulated in these Regulations. After receiving the report, the market supervision and management department shall promptly handle or transfer it to the relevant departments for handling.
The market supervision and management department shall make public the telephone, mailbox or e-mail address for accepting reports to the public. Article
23 The State Council regularly inspects the construction of the fair competition review mechanism of the local people's governments at or above the county level, the development of the fair competition review, and the handling of reports. The market supervision and management department of the State Council is responsible for the specific implementation. Article
24 If the drafting unit fails to carry out fair competition examination in accordance with the provisions of these Regulations and fails to rectify within the time limit under the supervision of the market supervision and management department, the market supervision and management department at the next higher level may interview the person in charge. Article
25 Where a fair competition review is not carried out in accordance with the provisions of these Regulations and causes serious adverse effects, the persons directly in charge of the drafting unit and other persons directly responsible shall be punished according to law. Chapter
V Supplementary Provisions
Article 26 The market supervision and administration department of the State Council shall formulate specific measures for the implementation of fair competition review in accordance with these Regulations. Article
27 These Regulations shall come into force as of August 1, 2024.
