Combating Price Monopoly

The Regulations on Anti-Price Monopoly and Regulations on Procedures for Administrative Enforcement of Anti-Price Monopoly, formulated by the National Development and Reform Commission, came into effect on February 1.

The Regulations on Anti-Price Monopoly prohibit price-fixing agreements and limiting or excluding competition through abuse of dominant market position. The Regulations on Procedures for Administrative Enforcement of Anti-Price Monopoly are designed to elevate the effectiveness of enforcing agencies and restrain them from abusing power.

"The regulations can provide guidance to businesses because the general provisions in the Anti-Monopoly Law are fairly general and could be subject to different interpretations," said Peter Wang, a partner with the law firm Jones Day in Shanghai. 

Withdrawal of Painkiller

All medicines containing dextropropoxyphene, a painkiller, must be withdrawn from the market by July 31, according to a statement issued by the State Food and Drug Administration (SFDA) on January 31.

The statement said that dextropropoxyphene could cause toxic effects on patients' hearts and may threaten life if taken in heavy doses, based on both domestic and overseas research.

The administration said there are alternative drugs to dextropropoxyphene that can ease pain caused by cancer or other diseases. Allowing for the fact that a sudden stop of use of dextropropoxyphene may cause withdrawal symptoms, the statement suggested that for a safe transition patients should seek proper alternative therapies under the guidance of their doctors.

Reviewing Foreign M&As  

China's State Council said in a statement on February 12 that it will establish a ministerial panel to review proposed foreign mergers and acquisitions of local companies to ensure the deals will not pose a danger to the national security.

According to the new regulation, which will come into effect in March, foreign M&A deals involving business in defense, agriculture, energy resources, infrastructure, transportation, technology or equipment manufacturing will be scrutinized. The review panel will be led by the National Development and Reform Commission and the Ministry of Commerce (MOFCOM).

Wang Zhile, a researcher at the Chinese Academy of International Trade and Economic Cooperation under the MOFCOM, said China welcomes foreign investment. "The new panel will play an active role in guiding the foreign investment to where it's most needed," he said.