Donald Scarinci
Firm Managing Partner
201-896-4100 dscarinci@sh-law.comFirm Insights
International Law Update: China Pledges To Equally Enforce Anti-Monopoly Law
Author: Donald Scarinci
Date: January 12, 2015
Key Contacts
Back
How is international law going to be affected once China begins to enforce this new law?
China represents significant opportunities for U.S. corporations, with exports alone totaling $161 billion in 2013. However, the country’s legal unpredictability increases the risks of conducting business in terms of international law.
To improve trade relations, officials from China and the United States recently concluded the 25th session of the U.S.-China Joint Commission on Commerce and Trade (JCCT). The JCCT meets annually to review the progress made by 16 working groups that meet throughout the year to address diverse trade issues, from intellectual property rights to the environment.
“This year we sought to ‘reimagine’ the JCCT to engage businesses from both countries in a dialogue about how to strengthen the trade and investment relationship between the world’s two largest economies, and we made significant progress,” said U.S. Secretary of Commerce Penny Pritzker.
Among the most noteworthy agreements, China has pledged to modify its enforcement of its Anti-Monopoly Law (AML) to treat domestic and foreign companies equally. The law is intended to deter monopoly agreements, prevent abuse of dominant market position, and police other transactions that may restrict competition. However, multi-national corporations operating in China have raised serious concerns about insufficient predictability, fairness and transparency in China’s investigative processes since the law’s enactment in 2008.
In a report published last year..
the U.S. Chamber of Commerce alleged that China’s enforcement of the anti-competition law in favor of local companies “arguably violates commitments that China undertook when it acceded to the World Trade Organization.” Last year alone, Audi, BMW, Daimler, Microsoft, and Qualcomm were all investigated for violating the AML.
At the JCCT..
the Chinese delegation agreed that a foreign company in an Anti-Monopoly Law investigation would be permitted to have counsel present and to consult with the company during proceedings. China also made several additional commitments, such as agreeing to provide increased transparency for investigated companies.
For U.S. businesses..
the agreed upon changes should lead to greater predictability and increased economic opportunities when operating in China. We will be closely tracking the status of the JCCT commitments and will provide updates in the coming months.
- Practices: Corporate Transactions & Business, International Law & Trade
- Locations: Red Bank, NJ, Little Falls, NJ, New York City
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.