A unified and independent agency is needed to ensure the
successful implementation of the Anti-Monopoly Law, which is
scheduled to come into effect next August, experts have said.
The law, adopted by the Standing Committee of the National
People's Congress on August 30, after 13 years of revisions,
proposes a special Anti-Monopoly Commission be set up under the
State Council to organize, coordinate and guide anti-monopoly
work.
The law will include targeting abuse of market-dominant
positions and administrative power that excludes or restricts
competition.
The central government will be able to authorize certain
agencies in anti-monopoly enforcement, the law states, without
specifying which agencies they are.
Speaking at the International Symposium on Anti-monopoly
Enforcement yesterday in Beijing, Wang Jiafu, an expert in law at
the Chinese Academy of Social Sciences, said: "The situation (of
several ministries participating in the law enforcement) will be
loose there should be a unified, effective and authoritative agency
to ensure maximum effect."
He said the ministry responsible for anti-monopoly law
enforcement should be a "neutral" one that has no interests or
involvement with businesses.
"It should also have much experience in handling unfair
competition and anti-monopoly practices," he said.
Currently, at least three ministries, including the National
Development and Reform Commission, the State Administration of
Industry and Commerce and Ministry of Commerce, are involved in
handling monopolies disputes.
Wang Xiaoye, a law expert who was involved in drafting the
Anti-Monopoly Law, said: "A powerful, unified agency is needed to
enforce the law against powerful government organs that might abuse
their administrative power to ensure State enterprises have a
monopoly in communications and power sectors."
Foreign countries have adopted various models for law
enforcement, with either parallel anti-monopoly ministries or a
single and unified one to handle the issue, he said.
A unified agency will be more swift and effective in
enforcement, but those models involving more than one agency might
cover a wider range of the market, he said.
However, experts have also said that China has accumulated
experience in anti-monopoly law enforcement with the Anti-Unfair
Competition Law, which has been in effect since 1993.
Figures show that industry and commerce authorities at all
levels have investigated about 7,000 cases of possible monopolies,
involving companies in the water, electricity, gas, postal service,
banking and tobacco sectors.
Hassan Qaqaya, head of the Competition Law and Consumer Policy
Branch of the United Nations Conference on Trade and Development,
said: "The Anti-Monopoly Law is a great development and will help
the Chinese economy adjust to current situations and benefit from
globalization and trade."
He said the challenges for China are mainly to do with the level
of implementation.
Meanwhile, foreign acquisitions of Chinese companies will also
be subject to stringent new checks intended to protect national
economic security.
"China will balance its situation with World Trade Organization
requirements while implementing the law," Zhong Youping,
vice-minister of the State Administration for Industry and
Commerce, said yesterday.
(China Daily December 14, 2007)