The Anti-Monopoly Law, the new competition law of the People’s Republic of China, entered into force on August 1, 2008. It is a comprehensive and modern antitrust regime that is broadly similar to competition laws in the United States and the European Union. It nevertheless contains various ambiguities that will give the Chinese authorities wide discretion when enforcing its provisions. Early decisions of the Chinese agencies will be followed closely to determine how the law is being applied and whether it is being used to pursue objectives unrelated to competition law. The AML applies to foreign and Chinese companies and regulates activity outside China that may have an effect on Chinese markets, as well as activity inside China.
