Legislature deliberates law
(Xinhua)
Updated: 2006-06-24 17:07
The draft anti-monopoly law, dubbed as the Constitution in economic field,
was submitted to the Standing Committee of the National People's Congress (NPC),
or China's legislature, for first deliberation after more than 10 years drafting
work.
The aim of the law is to protect fair competition, prevent and
check monopolistic behavior and maintain an orderly market place.
The
22nd session of the 10th NPC Standing Committee is to be held from June 24 to
29.
The draft law bans monopolistic agreements, such as price-fixing and
other forms of collusion and provides for investigation and prosecution of
monopolistic practices.
The draft law bans monopolies wielding their
dominant status to curb competition.
It would help open some markets
wider to foreign competition, at the same time would help prevent foreign
companies from acquiring "more and more Chinese firms" and help safeguard
national economic security.
A special anti-monopoly commission, which
consists of officials and experts, will be set up to deal with anti-monopoly
cases, according to the draft law.
Cao Kangtai, director of the
Legislative Affairs Office of the State Council on Saturday told the legislature
that China, as a country adopting market economy, needs to set up and implement
an anti-monopoly law to ensure business operators to participate in fair
competition and to regulate the market order.
"Currently, some
monopolies is taking advantage of their dominant status in market in a bid to
fix prices, conduct forcible trade, engage in package sale, and set unified
price, divide market and limit production output with other major business
operators. Their behaviors severely affected fair competition and infringed upon
the legitimate rights of consumers and small business operators," Cao confessed.
He also said "with the frequent domestic and overseas company merging
and reshuffle, monopolies emerged in some areas and in certain
sectors.Therefore, it is very necessary to formulate the anti-monopoly
law."
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