Measures for the Implementation of the Regulation on Fair Competition Reviews

Measures for the Implementation of the Regulation on Fair Competition Reviews
(Issued by Order No. 99 of the State Administration for Market Regulation on February 28, 2025 and shall come into force on April 20, 2025)

Chapter I General Provisions
Article 1 These Measures are developed in accordance with the Anti-monopoly Law of the People's Republic of China and the Regulation on Fair Competition Reviews (the “Regulation”) for the purposes of ensuring the implementation of fair competition review rules.
Article 2 Administrative organs and organizations empowered by a law or regulation to administer public affairs (collectively “drafting entities”) shall conduct fair competition reviews in accordance with the law when drafting policies and measures involving undertakings' economic activities.
The policies and measures involving undertakings' economic activities as referred to in the preceding paragraph include laws, administrative regulations, local regulations, rules, regulatory documents, and specific policies and measures involving undertakings' lawful and equal use of production elements and fair participation in market competition in aspects such as market access and exit, industrial development, investment attraction, government procurement, bidding, qualification standards, and regulation and law enforcement.
“Specific policies and measures” as referred to in the preceding paragraph means policies and measures other than laws, administrative regulations, local regulations, rules, and regulatory documents, that involve undertakings' economic activities, including but not limited to policy documents, standards, technical specifications, and administrative agreements and memorandums of understanding to be signed with undertakings.
Article 3 The State Administration for Market Regulation (“SAMR”) shall be responsible for guiding the implementation of fair competition review rules, urging relevant departments and local authorities to conduct fair competition reviews, and performing the following duties in accordance with the law:
(1) Guiding the implementation of fair competition review rules nationwide and promoting the resolution of major issues in the implementation of the rules.
(2) Conducting fair competition reviews in conjunction with the drafting entity of any policy or measure to be issued by the State Council or proposed to the National People's Congress and its standing committee for deliberation.
(3) Establishing and improving the mechanisms for random checks, handling of reports, and supervision related to fair competition reviews and organizing the relevant work nationwide.
(4) Undertaking the assessment of the implementation of fair competition review rules nationwide.
(6) Other matters on guiding and urging the implementation of fair competition review rules.
Article 4 Local market regulatory departments at or above the county level shall be responsible for organizing the implementation of fair competition review rules within their respective administrative regions, urge relevant departments to conduct fair competition reviews, and accept the guidance and supervision of market regulatory departments at higher levels.
Article 5 Drafting entities shall strictly fulfill their responsibilities for fair competition reviews, establish and improve fair competition review mechanisms, specify the institutions undertaking fair competition reviews, strengthen capacity building for fair competition reviews, and strengthen guarantees for the fair competition review work.
Article 6 Market regulatory departments shall strengthen the training, guidance, and law popularization and publicity for fair competition reviews, and promote and enhance the capacity and level of fair competition reviews.
Article 7 Market regulatory departments shall effectively carry out the statistics, development, and utilization of fair competition review data and other relevant work, and strengthen the building of information technology systems in fair competition reviews.
Article 8 In the assessment and evaluation of the construction of a law-based government and the optimization of the business environment by people's governments at or above the county level, market regulatory departments shall cooperate in effectively assessing and evaluating the fair competition review work and promote the comprehensive implementation of fair competition review rules.
Chapter II Review Standards
Section 1 Standards for Reviewing Restrictions on Market Access and Exit
Article 9 Any drafted policy or measure involving undertakings' economic activities shall not contain any of the following contents relating to the illegal establishment of market access approval procedures for any industry, field, or business, among others, beyond the negative list for market access:
(1) Formulating a negative list of a market access nature beyond the national unified negative list for market access in violation of regulations.
(2) Establishing in violation of regulations access permits beyond the national unified negative list for market access, or by such means as recordation, certification, catalogue, plan, planning, and accreditation, requiring the undertaking to obtain approval for its application before it can engage in investment and operation activities.
(3) Illegally increasing market access approval process and procedures or setting up procedures for prior recordation of an administrative approval nature.
(4) Imposing additional measures to prohibit market access or administrative measures for the licensing of market access in such aspects as restricting the qualification, form of ownership, equity ratio, business scope, types of operation, and business model of business entities in violation of regulations.
(5) Taking temporary administrative measures for market access in violation of regulations.
(6) Any other illegal establishment of approval procedures for any industry, field, or business, among others, not included in the negative list for market access.
Article 10 Any drafted policy or measure involving undertakings' economic activities shall not contain any of the following contents that unlawfully set up or grant a government-granted franchise:
(1) Setting up a franchise or increasing administrative licensing items in the name of a franchise without any basis in laws and administrative regulations or without the approval of the State Council.
(2) Failing to select a government franchisee through the means of fair competition such as bidding and negotiation.
(3) Illegally setting the term of the franchise or changing the term of the franchise in violation of legal procedures.
(4) Other contents that illegally set up or grant a government-granted franchise.
Article 11 Any drafted policy or measure involving undertakings' economic activities shall not contain any of the following contents that restrict the operation, purchase, or use of goods or services (collectively “goods”) provided by specific undertakings:
(1) Restricting or restricting in disguise the operation, purchase, or use of goods provided by specific undertakings by explicit requirements, hint, or other methods.
(2) Restricting or restricting in disguise the operation, purchase, or use of goods provided by specific undertakings by restricting the undertakings' form of ownership, place of registration, form of organization, or setting other unreasonable conditions.
(3) Restricting or restricting in disguise the operation, purchase, or use of goods provided by specific undertakings by setting up unreasonable project libraries, directories, alternative databases, qualification databases, and other methods.
(4) Restricting or restricting in disguise others' operation, purchase, or use of the goods provided by specific undertakings by taking incentive or punitive measures.
(5) Other contents that restrict the operation, purchase, or use of goods provided by specific undertakings.
Article 12 Any drafted policy or measure involving undertakings' economic activities shall not contain any of the following contents that set unreasonable or discriminatory access and exit conditions:
(1) Setting access conditions that are evidently unnecessary or exceed actual needs.
(2) Setting discriminatory market access and exit conditions according to the undertaking's form of ownership, place of registration, form of organization, and scale, among others.
(2) Setting obstacles to market exit in such aspects as the undertaking's deregistration, bankruptcy, quotation and transfer.
(4) Other contents that set unreasonable or discriminatory access and exit conditions.
Section 2 Standards for Reviewing Restrictions on the Free Flow of Goods and Elements
Article 13 Any drafted policy or measure involving undertakings' economic activities shall not contain any of the following contents that restrict the entry of non-local or imported goods or elements to the local market or prevent the relocation of local undertakings or the transport of local goods or elements to other places:
(1) Taking discriminatory measures such as prescribing technical requirements or inspection standards for non-local or imported goods different from those for local goods of the same type or requiring repeated inspections or repeated certification.
(2) Restricting the entry of non-local and imported goods or elements to the local market or the export of local goods or elements by setting up checkpoints or other means.
(3) Illegally setting up approval procedures or other unreasonable conditions to prevent undertakings from changing their registered address or reducing the registered capital, or imposing requirements for undertakings' duration of operations in the local area.
(4) Other contents that restrict the entry of non-local or imported goods or elements to the local market or prevent the relocation of local undertakings or the transport of local goods or elements to other places.
Article 14 Any drafted policy or measure involving undertakings' economic activities shall not contain any of the following contents that exclude or restrict non-local undertakings from, or force or force in disguise non-local undertakings into making investments, engaging in operations, or forming branches in the local area.
(1) Forcing, rejecting, or obstructing non-local undertakings from making investments, engaging in operations, or forming branches in the local area.
(2) Unreasonably restricting or imposing unreasonable requirements on the scale, mode, output value, and taxes of non-local undertakings' investments in the local area, and on the business model, form of organization, among others, of branches to be formed in the local area.
(3) Taking the investment or formation of branches in the local area as a necessary condition for participation in local government procurement, bidding, and conducting production and distribution.
(4) Other contents that exclude or restrict non-local undertakings from, or force or force in disguise non-local undertakings into making investments, engaging in operations, or forming branches in the local area.
Article 15 Any drafted policy or measure involving undertakings' economic activities shall not contain any of the following contents that exclude, restrict, or restrict in disguise non-local undertakings from participating in local government procurement and bidding.
(1) Prohibiting non-local undertakings from participating in local government procurement and bidding activities.
(2) Requiring, directly or in dis......