Home>News Center>China

Foreign firms' monopolies cause concern
By Fu Jing (China Daily)
Updated: 2005-12-08 05:44

China should introduce an early warning-system to prevent multinational companies (MNCs) from cornering the Chinese market, a cabinet think-tank has suggested.

Xie Fuzhan, vice-president of the State Council Development Research Centre urged the government to take action as foreign investors have intensified expansion in some industrial sectors and obtained sizeable shares of certain large projects.

"These are new trends in foreign investment, and they deserve close attention," Xie warned.

"But it doesn't conflict with our lasting strategy that emphasizes partnerships with MNCs which are willing to transfer core technologies and management experience."

Facing the new investment trend, Xie suggested that China should establish standards and a system to watch the behaviour of overseas investors to prevent monopoly risks in the Chinese market.

The system and standards are expected to be line with the Anti-Monopoly Law, which is going to be delivered to the National People's Congress for voting soon.

Xie voiced his concerns at yesterday's forum on China's Investment Opportunity and Overseas Chinese Entrepreneurs, which was organized by China News Agency.

In addition to preventing foreign investors from implementing monopolistic practices, China is establishing an anti-monopoly law to create equal market access for all investors, said Lin Yueqin, researcher with Chinese Academy of Social Sciences.

"The upcoming law will stipulate very clearly that a dominant market position should not be allowed to be abused by any market players, either from home or abroad," said Lin.

Lin said China will limit mergers and acquisitions and create a report system in which any mergers or acquisitions that meet certain criteria will require approval.

The criteria will be transparent, meaning enterprises will be held fully responsible for their business activities, said Lin.
Page: 12

Wen starts Slovak visit
Old man refused to advertise for companies
Hebei coal mine blast kills 74
  Today's Top News     Top China News

China, US start new round of strategic talks



Foreign firms' monopolies cause concern



Dam planned to contain river pollution



Deaths rise to 74 in Hebei coal mine blast



US air marshal kills passenger, citing threat



Saddam's stop-start trial goes on without him


  Medical bill scandal worsens as fresh allegations emerge
  Giant pandas to leave gilded cages
  62 dead, 13 missing in Hebei mine blast
  China links with Russia to combat toxic spill
  'Winter Days' too hot for drug rings
  Coastal city worries over seawater intrusion
  Go to Another Section  
  Story Tools  
  Related Stories  
Air firm wants end to fuel monopoly
Foreign money to see wider market access
Foreign money to see wider market access
Foreign money to see wider market access
Paving way for private biz going into military
Draft law aims to hold back monopolies
Draft law aims to hold back monopolies
  News Talk  
  It is time to prepare for Beijing - 2008  
Manufacturers, Exporters, Wholesalers - Global trade starts here.