The Chinese mainland is set to implement new fair competition regulations on August 1, aiming to create a level playing field for all market participants. According to officials from the State Administration for Market Regulation, these rules will eliminate regional protectionist practices and foster a unified domestic market.
These regulations will require authorities to review laws, rules, and policies related to business activities, including market entry and exit, the free flow of goods, and operational costs and practices. The goal is to prevent unreasonable or discriminatory conditions that restrict market access or limit the entry of external products without proper legal support.
Furthermore, without authorization from the State Council, authorities will be prohibited from granting specific businesses tax breaks or providing selective incentives and subsidies. The new rules also safeguard business autonomy by preventing illegal interference in market-regulated price levels and ensuring that governments do not overstep their authority in setting guided prices.
Since establishing a fair competition review system in 2016, the Chinese mainland has abolished or revised approximately 93,000 policies and measures that limited competition. These efforts have corrected practices that hinder fair access and restrict the free flow of factors, paving the way for a more market-oriented and law-based business environment.
Officials highlight that the new regulations mark a significant milestone in building a solid foundation for fair competition, ensuring that all business entities enjoy fairer policies, and enhancing the overall business climate to support emerging markets and innovation.
Reference(s):
China to bring into force fair competition regulations on August 1
cgtn.com
