Competition policy in China and its relevance to SMEs

Zhang, Yahua and Round, David K. (2012) Competition policy in China and its relevance to SMEs. Frontiers of Law in China , 7 (1). pp. 21-38. ISSN 1673-3428

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Competition policy has great relevance to all the firms in any economy. Even though it is unlikely that small and medium-sized enterprises (SMEs) have enough market power to constrain competition through a misuse of such power, they may still face prosecution if they are involved in a boycott of competitors or suppliers, price-fixing, output-restriction and other monopoly agreements. This article discusses antitrust issues pertaining to SMEs with a focus on China's Anti-Monopoly Law (AML) and its implementation rules. Contrary to the popular view that SMEs benefit from competition laws, evidence shows that they are reluctant to get involved in antitrust litigation against large firms partly because of the high legal costs involved. There is an urgent need to promote an awareness of antitrust compliance in China and to educate SMEs about the need to avoid breaching the new antitrust law and its associated regulations. In the meantime, SMEs should take full advantage of the antitrust laws to fight against the abuse of market dominance directed at them, and to gain equal opportunities to market access.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty / Department / School: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance
Date Deposited: 03 Jan 2013 05:38
Last Modified: 18 Jul 2014 05:43
Uncontrolled Keywords: competition policy; SMEs; China; AML; public interest
Fields of Research : 14 Economics > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation
16 Studies in Human Society > 1605 Policy and Administration > 160505 Economic Development Policy
18 Law and Legal Studies > 1801 Law > 180105 Commercial and Contract Law
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910205 Industry Policy
Identification Number or DOI: 10.3868/s050-001-012-0002-9

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