Merger Remedies in China : Developments and Issues

With its Anti-Monopoly Law (AML) entering into force on August 1st, 2008, China introduced a fully-fledged merger control regime that applies generally to both foreign and Chinese companies. Since then, the Ministry of Commerce (MOFCOM), the designated enforcement agency for merger control under the AML, has moved quickly to issue or draft implementing rules and taken on an enhanced role in reviewing cases. One major development in this process is the application of remedies in merger enforcement and its still-evolving approach. During the first two years since the start of the AML merger control system in China, MOFCOM has conditionally cleared five mergers and made efforts to adopt rules on merger remedies. But China has yet to build up the experience of remedy enforcement. This article explores the developments and issues in this process. It first explains the remedies adopted in the five conditional clearance decisions. Then it provides an analysis of the relevant provisions and newly adopted rules that further reflect MOFCOM’s approach to merger remedies