The Anti-monopoly Bureau of the State Administration for Market Regulation recently published the Guidelines on Leniency for Horizontal Monopoly Agreements. The guidelines propose a relatively reliable leniency system under the Anti-monopoly Law, which is of great significance for improving the effectiveness of antitrust enforcement, while providing a valuable source of guidance for Chinese market players to follow.
China's antitrust agency's greatest competition concerns in the automobile sector relate to vertical restraints. Possibly underscoring this concern, the newly published Antitrust Guidelines on the Automobile Industry placed its main focus on clarifying issues arising therefrom. To help companies in the automobile industry better make their own assessments on antitrust compliance in China, this article explains the antitrust rules relating to vertical restraints provided in the guidelines and analyses their implications.
Alongside increased administrative action, Chinese companies increasingly bring private antitrust actions against rival companies, particularly in the technology sphere. These suits are often accompanied by an administrative complaint that can lead to investigations and penalties. This article clarifies China's hybrid antitrust system in order to better understand the antitrust risks facing foreign enterprises in China.
China's merger review practice has not been negatively affected by the COVID-19 outbreak. According to public statistics, in the first quarter of 2020 the State Administration for Market Regulation (SAMR) completed 111 filing reviews, with a slight year-on-year growth of 0.9%. The current economic downturn raises the question of whether the SAMR will relax its antitrust scrutiny to encourage M&A activity. However, recent merger review practice in China suggests that this has not been the case in the semiconductor sector.
The year 2019 marked the 11th anniversary of the implementation of the Anti-monopoly Law and was also the first full calendar year since the State Administration for Market Regulation (SAMR) became China's single centralised antitrust enforcement agency. Evidently. the SAMR has become more stringent and detail oriented with respect to the analysis of relevant markets and the competition impact of mergers.
Foreign insurers cannot directly sell insurance products in China unless they have successfully established a joint venture or wholly foreign-owned enterprise (WFOE) insurer in mainland China. In light of Shenzhen's recent pilots and reforms, it is now the most favourable destination for foreign insurers seeking to establish a WFOE in mainland China.
Despite the tortuous path ahead for the US election campaigns and the trials and tribulations of 2020, the US-China Phase One Trade Deal remains in place. As China begins to further open its financial market, foreign insurance institutions (FIIs) may be wondering whether non-US FIIs have any chance of benefiting from China's treatment of US insurers. If only US insurers benefit, would that be a Global Agreement on Trade in Services (GATS) violation or would it be GATS compliant?
The rapid spread of the COVID-19 pandemic has affected business operations worldwide. For many companies, business interruption (BI) as a result of the pandemic is one of the greatest operational risks of 2020. Although many companies are insured against BI, their coverage may not extend as far as they believe. For example, compensation under a BI policy is often based on the condition that damage to property has occurred. This article sheds some light on this rule.
It is no secret that China's insurance industry presents good upside growth opportunities and China's insurtech market continues to grow rapidly. Foreign insurers are currently underrepresented in this market, even as former market barriers to entry continue to fall. This market presents great potential for foreign insurers, and Western insurers in particular have centuries of experience to share with their Chinese counterparts.
In early 2020, the Luckin Coffee scandal drew attention from the insurance, legal and security industries and turned the spotlight on directors' and officers' (D&O) liability insurance policies in China. With the developing pace of the security and insurance markets, the refreshed focus on D&O insurance gives Chinese underwriters plenty to contemplate.
In order to effectively strengthen the protection of users' personal information, the Ministry of Industry and Information Technology issued the Notice on Carrying out the Special Campaign to Promote Governance on Apps that Infringe Upon Users' Rights and Interests, requiring that a national app testing platform management system be launched before the end of August 2020. The testing platform management system is expected to complete testing for 400,000 mainstream apps before 10 December 2020.
The Supreme People's Court and the National Development and Reform Commission recently issued the Opinions on Providing Judicial Services and Supports to Accelerate the Improvement of the Socialist Market Economy System in the New Era. Among other things, the opinions emphasise that the state should strengthen the protection of data rights and personal information security.
The Ministry of Industry and Information Technology (MIIT) recently instructed third-party testing agencies to examine certain mobile apps and issued the Second and Third Batches of Apps that Infringe Upon Users' Rights and Interests, requiring operators of said apps to make rectifications. Numerous apps did not complete their rectifications before the designated timelines. As a result, the MIIT may impose fines.
China Central Television's 3.15 programme recently exposed that third-party software development kit plug-ins for mobile phones were collecting and using users' personal information. In response, the Ministry of Industry and Information Technology immediately asked the relevant entities to investigate the enterprises involved in accordance with the law.
The Justice Bureau of Shenzhen Municipality recently issued the Data Regulations of Shenzhen Special Economic Zone for public opinion. The draft regulations define the concept of 'data rights' for the first time and set out the ownership of personal and public data. According to the draft regulations, no organisation or individual may infringe on natural persons' data rights in accordance with the law.