The Independence of Chinese Competition Agencies and the Impact on Competition Enforcement in China

Journal of Antitrust Enforcement, 2015

Posted: 19 Nov 2015

See all articles by Wendy Ng

Wendy Ng

University of Melbourne - Law School

Date Written: November 18, 2015

Abstract

Administrative enforcement of China’s Anti-Monopoly Law is shared among three ministries, and a pan-ministry commission sits above these ministries to coordinate competition policy. This two-tiered tripartite enforcement structure has been criticized as inefficient, costly, and ineffective. In particular, commentators are concerned that the agencies’ lack of independence will lead to the consideration of non-competition matters in competition enforcement. However, there has been minimal research done on how these institutional arrangements limit the independence of the Chinese competition agencies and whether and how this has actually impacted the enforcement of the Anti-Monopoly Law.

This article addresses this gap by investigating whether a lack of independence has affected competition enforcement in China. By looking at the concept of agency independence, this article argues that, in addition to the constraints on independence that arise from the competition agencies’ positions as ministries within the executive branch, their independence is also limited by the conventions, coordination mechanisms, and relationships that exist within China’s socialist system. Applying this broader, multidimensional concept of independence to understand the enforcement experience of the Anti-Monopoly Law, the article finds that the limitations placed on the independence of the competition agencies have shaped enforcement processes and outcomes.

Keywords: competition law, anti-monopoly law, antitrust, China, institutional arrangements, agency independence, political economy, competition enforcement

JEL Classification: B25, D73, D73, D78, K21, L4, L5, P26

Suggested Citation

Ng, Wendy, The Independence of Chinese Competition Agencies and the Impact on Competition Enforcement in China (November 18, 2015). Journal of Antitrust Enforcement, 2015. Available at SSRN: https://ssrn.com/abstract=2693051

Wendy Ng (Contact Author)

University of Melbourne - Law School ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia

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