Anti-Monopoly Law

I. The significance and urgency of enacting the Anti-Monopoly Law

Firstly, from the point of view of economics.

Generally speaking, in the state of free competition, each manufacturer does not have the monopoly power to control prices and production, in order to obtain profits, each manufacturer must take the way of increasing labor productivity, lower prices, improve the quality of products and services to expand market share to obtain greater profits, in the process, due to the mechanism of elimination of the best and the worst, the free flow of resources will be able to realize the optimal allocation of resources. The optimal allocation of resources will be realized. And in the monopoly, especially the complete monopoly state, due to the uniqueness of the supply, so that the monopolist can be free pricing, to find the best combination of production quantity and price, to achieve the maximization of monopoly profits. At the same time, in order to safeguard its own super monopoly interests, the monopolist is bound to take measures to hinder the entry of new competitors into the market. In this way, it will not be conducive to the optimal allocation of resources in society as a whole, the progress of science and technology, the improvement of production efficiency, and the improvement of people's lives. Therefore, competition brings efficiency.

Secondly, from the impact of WTO accession on various industries in China.

In order to join the WTO, China in the negotiations with the United States and the European Union, committed to a substantial reduction in tariffs, and the abolition of a large number of import licenses or quota restrictions on imports, and at the same time, the access to the service trade market has also made greater concessions. In this way, the reduction of import tariffs and non-tariff barriers, and the liberalization of trade in services will lead to greater access to the domestic market for foreign products or a greater influx of foreign direct investment. This will certainly have a great impact on our relatively fragile industries and services. Compared with some domestic industries that are backward in terms of technology, inefficiency and lack of capital, foreign manufacturers or foreign-funded manufacturers are more likely to occupy a monopoly position or even become oligopolies in our country. At present, the concentration of foreign direct investment in production and sales in a number of industries has reached a fairly high level. For example, in the car industry, foreign-invested enterprises account for 68%; in the elevator industry, 70%; in program-controlled exchanges, 90%; and in mobile telephone communication equipment, 90% ...... It can be seen that in certain industries in China, foreign investment (essentially a few large multinational corporations) has occupied a dominant market share. And, with China's accession to the WTO, this phenomenon will intensify, at least for a considerable period of time. Driven by the nature of the pursuit of profits, enterprises with monopoly status will certainly abuse or utilize their dominant power, intentionally or unintentionally, to strive for high profits and suppress domestic investors. This is not only not conducive to the development of China's market economy, hindering the improvement of domestic production efficiency, harming the long-term interests of consumers, more seriously, it will not be conducive to the establishment of China's national industry is strong, a serious impediment to accession to the WTO in China's industries to respond to the impact of the challenge to meet. Thus making the weak weaker and the strong stronger. This will offset the benefits and opportunities brought to our country by WTO accession.

In summary, our country needs to formulate our country's "anti-trust law", in order to adapt to the WTO free trade rules, and better safeguard the WTO's free competition order, give full play to the WTO to our country's long-term interests, so that accession to the WTO is really an opportunity for the country's industry to take off.

Second, the status of China's competition law

In 1994, China formulated China's first competition law, "Unfair Competition Law", the law strongly regulate the domestic competition, but the content of the law is too simple. 1997, China has formulated the "Anti-dumping and Countervailing Regulations," which became China's first international trade regulations to regulate the behavior of the competition and, accordingly, the newsprint, cold paper, cold paper, cold paper, cold paper, cold paper, cold paper, cold paper, cold paper, cold paper, cold paper, cold paper and cold paper. Carried out on newsprint, cold rolled steel and other cases of dumping investigation and processing, effectively combating the foreign manufacturers of China's low-priced dumping behavior, to protect China's domestic industry. In addition, there are still many rules and regulations governing competition behavior in China. However, China's competition law has not formed a system. With the development of China's market economy and the major changes in China's economic field after its accession to the WTO, China's competition law has begun to be dwarfed. This is one of the key point is that China's competition law lacks the "Anti-Monopoly Law" an important part of the anti-monopoly, China's law is still a blank slate, this situation has seriously lagged behind the level of China's economic development.