China deliberates new law
(Xinhua)
Updated: 2006-06-25 09:35
The draft of China's first anti-monopoly law has been submitted to the
national legislature for its deliberation after more than 10 years in its
composition.
The aim of the law is to protect fair competition, prevent
and check monopolistic behavior and maintain a regulated market
place.
The 22nd session of the 10th National People's Congress (NPC)
Standing Committee will consider the draft when it meets from June 24 to
29.
The draft law would help open some markets wider to foreign
competition, while helping to prevent foreign companies from acquiring existing
Chinese monopolies to safeguard national economic security.
A special
anti-monopoly commission, which consists of officials and experts, will be set
up to deal with anti-monopoly issues under the draft law.
Cao Kangtai,
director of the Legislative Affairs Office of the State Council, on Saturday
told the legislature that China needed an anti-monopoly law to ensure fair
competition and to regulate market order.
"Currently, some monopolies
wield their dominant status in the market to fix prices, pressure suppliers,
engage in enforced package sales, and establish cartels, divide the market and
limit production with other major business operators," Cao said.
"Their
behavior severely affects fair competition and infringes the legitimate rights
of consumers and small business operators.
"With frequent domestic and
overseas mergers and restructuring, monopolies are forming in some areas and in
certain industries in China. This is why and anti-monopoly law is
essential."
The draft law, with eight chapters and 56 provisions, bans
monopolistic agreements, such as cartels and other forms of collusion, and
provides for investigation and prosecution of monopolistic practices, while
protecting monopolistic agreements that promote innovation and technological
advance.
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