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Review of Industrial Organization

, Volume 41, Issue 1–2, pp 109–132 | Cite as

Merger Control Policy Under China’s Anti-Monopoly Law

  • Ping Lin
  • Jingjing Zhao
Article

Abstract

China’s merger policy and enforcement approaches since its Anti-Monopoly Law (AML) took effect in August 2008 are by and large based on the same conceptual framework that is employed in advanced economies. While China has shown a very fast learning capability in conducting competition analysis, further capacity building in China is crucial. There is no clear evidence of industrial policy considerations being at the forefront in the eight published decisions by the Ministry of Commerce to date, except for its very early decisions. We propose a competition-neutral principle, which requires that a competition test be conducted before, and independently from, any consideration of industrial policy and argue that industrial policy matters only for competition-neutral mergers. On a more technical level, if China adopts the total welfare standard, then its treatment of efficiencies and the meaning of sufficiency of entry post merger should be modified accordingly from the US/EU consumer-oriented model.

Keywords

Merger control China’s Anti-Monopoly Law Theory of harm Welfare standard Industrial policy 

JEL Classification

L4 L43 L44 

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Copyright information

© Springer Science+Business Media, LLC. 2012

Authors and Affiliations

  1. 1.Department of EconomicsLingnan University of Hong KongTuen MunHong Kong
  2. 2.Norton Rose Hong KongCentralHong Kong

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