As predicted earlier this week on BizChinaUpdate, China has now passed its Anti-Monopoly Law, which will require foreign purchasers of Chinese firms in sensitive sectors to pass stringent national security reviews.
"The aim of the law is to make effective use of foreign investment
while protecting core industries and maintaining economic security,"
Huang Jianchu, Head of the Economic Law Section of the National
People's Congress, told reporters in Beijing.
The Anti-Monopoly Law has eight chapters and 57 provisions, and bans
monopolistic pacts and practices, such as cartels and price-fixing,
but allows for monopolies that "promote innovation and technological
advance." China began work on the law in 1994, though a first draft
was not completed until 2003.
The legislation is timely, state media added, "as foreign companies
have increasingly begun to acquire major state-owned enterprises or
companies with famous brands, arousing concerns about economic
security."
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