New Reply

Post a Reply

Thread: Anit-monopoly law passed!!!

Title: (100 characters at most)

Content: ( 3,000 characters at most, please )

You can add emoticons below to your post by clicking them.

[quote=KEVIN0518,244643]Source: Xinhua and China org.cn.

On August 30th, the standing committee of NPC passed the Anti-monopoly law and declared that the law will take effect on August 1st in 2008. And it aims at ensuring the fair competition and regulating the market order.

The law has set some rules for those foreign giant companies. It requires: "Foreign mergers and acquisitions of domestic companies or foreign capital investing in domestic companies' operation in other forms should be examined according to relevant laws and regulations if the cases are related to national security."

The purpose is to ensure China's ecnomic security.  According to official statistics, the number of foreign merger and acquisition cases reached 20 percent in 2005. Moreoever, foreign companies have begun to acquire major state-owned enterprises or companies with famous brands in recent years, arousing concerns about China's economic security. 
 
The regulation set by MOC (Ministry of Commerce ) last year requires: Foreign investors should apply for approvals from the Ministry of Commerce (MOC) if their purchases of domestic companies affect national economic security, take place in key sectors or cause a transfer of the operating rights of famous domestic brands.

All companies seeking mergers or acquisitions would have to notify the anti-monopoly law enforcement departments if the actions meet the standard set by the State Council.

On the issue of Anti- monopoly law, some people doubt whether it will take effect. They think that it is hard to make these monopolising giants such as Sinopec, China Mobile,China Unicom, China Telecom and China Net abide by the laws. What do you think?

[/quote]

characters left

Name:

Get a new code