Hongxing News:

The third plenary session of the 20th CPC Central Committee proposed to build a unified national market, which would require breaking up various secluded small markets and their internal circulation. What measures have been adopted by the administration for market regulation to break up local protectionism and market segmentation? Thank you.

Pu Chun:

My colleague, Mr. Zhou, will answer this question.

Zhou Zhigao:

Thank you for your question. Just as you mentioned, breaking up local protectionism and market segmentation is of great significance to accelerate the construction of a unified national market. In recent years, the administration for market regulation has addressed both the symptoms and root causes, and has attached equal importance to efforts in both establishing new systems and abolishing old ones, working resolutely to break various forms of local protectionism and market segmentation with positive progress being achieved.

First, we have improved the mechanisms for fair competition with higher standards and have consolidated the foundational rules of law for building a unified national market. Building a unified national market requires comprehensive and unified mechanisms for fair competition. In June 2022, China completed the first amendment to the Anti-Monopoly Law after 15 years since its introduction, establishing a foundational role for competition policies from the legal perspective. In January this year, the State Council revised and raised the declaration thresholds for concentration of undertakings, facilitating investment, mergers and acquisitions of enterprises. On Aug. 1, the Regulations for Fair Competition Reviews officially came into effect and put forward specific requirements with 19 prohibitions from four aspects, preventing the introduction of policies and measures that would exclude or impede competition. The formulation and revision of these laws and regulations has laid a solid institutional groundwork for eliminating local protectionism and speeding up the construction of a unified national market.

Second, we further enhanced supervision and law enforcement, regulating improper administrative interventions in market competition. Since 2022, we have focused on public utilities and other key fields and strengthened law enforcement to prevent and stop the abuse of administrative power that excludes and stifles competition. So far, we've investigated and resolved 122 cases of administrative monopolies. In addition, we began reviewing and abolishing policies and measures that hinder the development of a unified national market and fair competition. We've fully implemented a fair competition review system to ensure institutions serve as a rigid constraint. We addressed numerous improper actions that restricted trade, impeded the free flow of commodities and factors of production, or excluded and restricted non-local businesses, aiming to eradicate closed "small markets" and fragmented "minor cycles."

Third, we bolstered public support for fair competition, encouraging all stakeholders to safeguard and promote it. Since 2022, we have organized an annual publicity week for China's fair competition policies with the theme "Unified National Market, Fair Competition for the Future." We have published annual reports on anti-monopoly law enforcement and carried out publicity activities to introduce fair competition laws and policies to government organs, Party schools, and enterprises. We've also intensified publicity and training efforts, vigorously promoting a culture of fair competition. I'd like to inform all our media friends that this year's publicity week for fair competition policies will kick off in September, and we welcome your support.

The third plenary session of the 20th CPC Central Committee made important deployments on building a unified national market. It proposed that we enhance the binding force of fair competition review, and review and abolish regulations and practices that impede the development of a unified national market and fair competition. Moving forward, the SAMR will thoroughly implement the guiding principles of the session and enhance the intensity and effectiveness of regulating improper administrative interventions in market competition, aiming to create a fairer and more vigorous environment for all business entities. Thank you.