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China

Li Qiang signs a State Council order to announce the Regulations on Fair Competition Review

2024-06-14   

The Regulations consist of 5 chapters and 27 articles, mainly stipulating the following content.
One is to clarify the scope of fair competition review. Administrative agencies and organizations authorized by laws and regulations with the function of managing public affairs (hereinafter referred to as drafting units) shall conduct fair competition reviews in accordance with the provisions of this Regulation when drafting laws, administrative regulations, local regulations, rules, normative documents, and specific policy measures (hereinafter referred to as policy measures) related to the economic activities of operators.
The second is to define the responsibilities of relevant parties. The State Council establishes a coordination mechanism for fair competition review to coordinate, coordinate, and guide the national fair competition review work. The market supervision and administration department of the State Council is responsible for guiding the implementation of the fair competition review system, and supervising relevant departments and localities to carry out fair competition review work. Local people's governments at or above the county level shall establish and improve the mechanism for fair competition review, and the market supervision and management department shall be responsible for organizing and implementing the fair competition review system in their respective administrative regions.
The third is to clarify the standards for fair competition review. Drafting policy measures shall not contain any content that restricts or indirectly restricts market access and exit, restricts the free flow of goods and factors, improperly affects production and operation costs, or affects production and operation behavior. If policy measures have or may have the effect of excluding or restricting competition, but meet the requirements of maintaining national security, realizing social public interests, and there is no alternative plan that has a smaller impact on fair competition, and a reasonable implementation period or termination condition can be determined, they can be introduced.
The fourth is to clarify the fair competition review mechanism. The policy measures to be introduced by the department shall be subject to fair competition review by the drafting unit during the drafting stage. The policy measures proposed to be jointly introduced by multiple departments will be subject to fair competition review by the leading drafting unit during the drafting stage. The policy measures proposed to be introduced by the people's government at or above the county level or submitted for review by the local people's congress and its standing committee shall be subject to fair competition review by the market supervision and management department of the local people's government in conjunction with the drafting unit during the drafting stage. To conduct fair competition review, opinions from relevant stakeholders should be heard; If it involves the public interest, the opinions of the public should be heard. Policy measures that have not undergone fair competition review or do not comply with the provisions of this regulation shall not be introduced.
The fifth is to strengthen supervision and guarantee. The market supervision and management department shall organize spot checks on relevant policies and measures, and shall urge the drafting unit to rectify any violations of the provisions of this Regulation. Any unit or individual may report to the market supervision and management department any policy measures that violate the provisions of this regulation. The State Council regularly conducts inspections on the fair competition review work of local people's governments at or above the county level. If the drafting unit fails to conduct a fair competition review in accordance with the provisions of this regulation and fails to rectify it after supervision, the person in charge may be interviewed. 

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