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The resolution adopted at the third plenary session of the 20th CPC Central Committee emphasizes the need to enhance the binding force of fair competition review and to take stronger action against monopolies and unfair competition. What work has been done by the SAMR in this regard? Thank you.

Pu Chun:

My colleague Mr. Zhou will answer this question. 

Zhou Zhigao:

Fair competition is the cornerstone of a market economy and provides important support for high-quality development. In recent years, the SAMR has focused on high-quality development as our top priority. We have consistently worked to regulate market competition, ensuring fair competition and maintaining market order. Our work has mainly been in three aspects:

First, we have deepened anti-monopoly regulation and enforcement in key areas. Over the past two years, we have carried out special anti-monopoly enforcement actions in sectors related to people's well-being, enhancing regulation and enforcement in the fields of medicine, building materials, automobiles, and utilities. Since 2022, we have investigated and dealt with 60 cases involving monopoly agreements and abuses of dominant market positions. These actions have resulted in forfeitures exceeding 2.5 billion yuan, contributing to a steady improvement in market competition order. Meanwhile, we deepened regular anti-monopoly regulation in the digital economy and other areas. We unconditionally approved 48 notifications of platform operator concentrations in accordance with the law. We have fully leveraged major cases as cautionary examples to encourage business operators to sign industry-specific self-discipline pacts, issued warnings against monopolistic practices as per the law, urged and guided enterprises involved in various cases to restructure and meet compliance requirements, aiming to continuously optimize order across multiple industries.

Second, we have made efforts to conduct anti-monopoly reviews of cases of operator concentration. Since 2022, we have investigated and closed more than 1,900 such cases, conditionally approved 10, including Simcere's acquisition of Tobishi and Wanhua Chemical's acquisition of Yantai Juli Fine Chemical, and legally lifted the restrictive conditions over the case of Marubeni Corporation buying the entire stake of Gavilon Holdings, boosting enterprises' vitality in investment and mergers. Meanwhile, we reviewed simple cases and other cases separately, authorized market regulation departments in Beijing and four other provincial-level regions to conduct anti-monopoly reviews of some simple cases of operator concentration, and launched online systems to review these cases, thus improving the quality and efficiency of case reviews.

Third, we have supported and guided operators to enhance anti-monopoly compliance. This April, the Anti-Monopoly and Anti-Unfair Competition Commission of the State Council revised and issued anti-monopoly compliance guidance for operators, detailing specific monopoly-related compliance risks, and established an incentive system for anti-monopoly compliance. Meanwhile, we released anti-monopoly compliance guidance for operator concentration and hosted a series of lectures on anti-monopoly compliance, aiming to support and guide operators in enhancing compliance management. We are intensifying efforts to establish national standards for fair competition compliance management among operators. We aim to create a collaborative governance model combining voluntary enterprise compliance, effective government guidance, and widespread public support.

As you just mentioned, the third plenary session of the 20th CPC Central Committee laid out explicit requirements for intensifying anti-monopoly measures. Moving forward, the SAMR will continue to enhance and refine its supervision and enforcement of these measures. Our goal is to better maintain market order, address market failures and ensure an environment for fair competition that bolsters the internal driving forces and creativity of the whole of society. By championing fair competition, we aim to promote high-quality development yielding even more substantial outcomes. Thank you.