Legal experts involved in drawing up China's new anti-monopoly draft law say
a unified organization is needed to enforce what is viewed as the nation's
The draft governs the actions of all monopolies in China, both domestic and
foreign, and, as it stands, an anti-monopoly commission will be established
under the State Council.
But the responsibility for enforcement will be divided among the Ministry of
Commerce, the State Administration for Industry and Commerce, and the National
Development and Reform Commission.
But Wang Xiaoye, Sheng Jiemin and Shi Jianzhong, three legal experts who
participated in the legislation, all oppose enforcement by the multi-department
"No country in the world appoints so many administrative departments to
enforce a law to protect market competition," Wang, economic law director of the
law institute under the Chinese Academy of Social Sciences, told China Daily.
Without a unified and authoritative law enforcement organization, she added,
the anti-monopoly law will be difficult to enforce, and "the issue is a key
point in the legislation."
Shi, a professor at the China University of Political Science and Law, said
most countries have a unified anti-monopoly law enforcement organization. One
notable exception is the United States, which authorizes the Department of
Justice and Federal Trade Commission to do the work.
He said he hoped that the anti-monopoly commission under the State Council
would handle the law's enforcement.
Sheng, director of the Institute of Economic Law at Peking University, also
pointed out that a multi-department law enforcement system would not work.
On combating administrative monopolies such as the postal service or the
railways, Wang disagreed with the part of the draft that authorizes higher
authorities to correct governmental misuse of power that hampers market
If the draft is adopted without a change in that area, she said, "it may mean
the anti-monopoly law enforcement organization has no right to curb
The answer, she said, is to empower the anti-monopoly law enforcement
organization to deal with administrative monopolies.
The draft was submitted to the Standing Committee of the National People's
Congress (NPC) in June for the first read, and the second read is not expected
until the first half of next year.
Other experts praised the draft for addressing both domestic and foreign
Huang Yong, a professor at the University of International Business and
Economics who also participated in the legislation, said that the law does not
target only foreign monopolies.
"Maintaining order in competition that does not discriminate against foreign
companies accords with China's interests," he said.
Complaints against monopolies of multinationals include areas such as laptop
computers, beverages, and supermarkets.