Promoting the Construction of a Unified Market through Fair Competition Review

2023-05-17

Recently, the State Administration for Market Regulation and Regulation released the "Fair Competition Review Regulations (Draft for Soliciting Opinions)" (hereinafter referred to as the "Regulations") to solicit opinions from society. The Regulations have improved the review content of market access and exit, free flow of goods and factors, impact on production and operation costs, and impact on production and operation behavior, aiming to further standardize and strengthen the fair competition review work, Break down local protection and administrative monopolies, and promote the acceleration of the construction of an efficient, standardized, fair competition, and fully open national unified market. Since the reform and opening up, how to break down the barriers of local protection domestically, build a unified domestic market, adapt to international trade rules externally, and better integrate into economic globalization has been a major issue related to China's economic development. Although China's Anti unfair competition Law and Anti monopoly Law have successively regulated the abuse of administrative power to restrict competition, they are mostly based on the post supervision of law enforcement agencies on local governments at all levels, which inevitably lags behind. Moreover, the actual coverage is small and the law enforcement is insufficient, which cannot play a deterrent role. In addition, there is no clear regulation of government subsidy behavior between the two, which can easily lead to some Chinese companies receiving government subsidies facing countervailing investigations in overseas markets and suffering losses. In order to deepen the reform of the economic system, prevent excessive and improper government intervention in the market, and unleash the vitality of market entities, the State Council introduced a fair competition review mechanism in 2016. Since then, local governments at all levels have achieved remarkable results through self inspection and self correction of policies and measures that distort competition through fair competition review. According to public data, in 2021 alone, a total of 244000 new policy measures were reviewed nationwide, 442000 existing policy measures were cleared, and 11000 policy measures that violated fair competition review standards were corrected or abolished. Considering the large amount of fair competition review work, strong professionalism in the review work, and differences in the enthusiasm and rigor of local governments at all levels in their specific implementation, the Regulation proposes to establish a coordination mechanism for fair competition review work at the same level from the State Council to local governments at or above the county level. By establishing a major policy measure fair competition review system, introducing a third-party evaluation mechanism Develop annual reports on fair competition review work and other measures, focusing on addressing issues such as incomplete review content, incomplete review procedures, and insufficient rigid constraints. However, some aspects of the Regulations still need to be further improved to avoid blind spots in the implementation of the system. Firstly, enhance the transparency of fair competition review work. Although there have been over a million policy and measure documents of local governments at all levels that have undergone fair competition review in recent years, except for a few typical cases that have been made public, most of them have not disclosed written fair competition review results, which affects the public's supervision of fair competition review work. The proposed regulations stipulate that, in addition to the need for confidentiality in accordance with the law, policy making agencies should publicly solicit opinions from society or seek opinions from relevant business entities, industry associations, chambers of commerce, and other stakeholders. However, from past practice, the vast majority of policy making agencies tend to seek the opinions of "stakeholders" and lack necessary social supervision,

Edit:Ying Ying    Responsible editor:Shen Chen

Source:legaldaily.com

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