Cartels 2025

CHINA Law and Practice Contributed by: Qian Xiaoqiang, Yang Yikai and Chu Linxian, Haiwen & Partners

standards, or carrying out professional labour division; • improving the efficiency and enhancing the competitiveness of small and medium-sized undertakings; • realising public interests such as energy conservation, environmental protection and disaster relief and aid; • mitigating serious decreases in sales or excessive production during economic reces - sions; • safeguarding the legitimate interests in inter - national commerce; and • others as prescribed by laws and the State Council. Regarding the first five purposes, the undertak - ing must also prove that such agreement will not seriously restrict competition and will allow consumers to benefit from the agreement’s out - comes. In addition, per Article 69, the AML will not apply to alliances formed between, or the co-ordinat - ed activities of, agricultural producers and rural economic organisations in the production, pro - cessing, sale, transportation, storage and other business activities related to agricultural prod - ucts. 1.5 Limitation Periods Limitation Periods of Administrative Liabilities The power of Competition Authorities to impose administrative liabilities on those engaged in cartel conduct is subject to Article 36 of the Administrative Penalty Law amended in 2021. No administrative liabilities shall be imposed if the cartel infringement is not discovered within two years, which shall be extended to five years in cases involving personal safety or financial security and resulting in harm. In principle, such limitation period starts from the date the cartel

conduct is committed; if the cartel conduct is of a continuous nature, such period starts from the date on which the cartel conduct ceases. Limitation Periods of Civil Liabilities For private civil actions, the limitation periods are governed by the Civil Code implemented in 2021 and further clarified by the 2024 Judicial Interpretations. As prescribed in Article 188 of the Civil Code, civil actions are subject to a three-year limitation period. Such period shall commence from the date when the infringed party becomes aware, or should have become aware, of both the infringe - ment and the identity of the infringer. Under Arti - cle 49 of the 2024 Judicial Interpretations, if the infringed party files an administrative complaint with competition authorities, the three-year limi - tation period is paused and will restart from the moment the complainant becomes aware, or should become aware, of the outcome of the administrative enforcement. Article 188 of the Civil Code further provides that the civil rights of the infringed party are not protected by the People’s Court if more than 20 years have elapsed since the infringe - ment, except for special circumstances with the approval of the People’s Court. Civil claims seeking injunctive relief, however, are not subject to any of the limitation periods per Article 196 of the Civil Code. Limitation Periods of Criminal Liabilities Per Articles 87 and 89 of the Criminal Law, the limitation period for current cartel-related crimes is five years. Such period starts from the date the crime is committed; if the crime is of a continu - ous nature, such period starts from the date on which the crime ceases.

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