Cartels 2025

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

1.6 Jurisdiction The PRC antitrust regime has extraterritorial reach. As prescribed by Article 2, the AML shall apply to cartel infringement conduct occurring outside the territory of the PRC, provided that such conduct eliminates or restricts competition within the PRC. 1.7 Principles of Comity For antitrust enforcement, in practice, whether the case has been, or is currently being, con - sidered by foreign counterparts would not necessarily affect the Competition Authori - ties’ discretion to initiate investigations or ren - der administrative decisions. Nevertheless, it is believed that the principles of comity would influence the enforcement process/outcome to a certain extent in cases involving foreign entities or international matters, but the precise degree of such influence remains difficult to quantify. On the judicial front, the Civil Procedure Law amended in 2023 adopts a general rule of comity applicable to monopolistic disputes. According to Articles 280, 281 and 282 of the Civil Pro - cedure Law, the People’s Court may suspend proceedings of a lawsuit where a litigant applies to the PRC court in writing for suspension of the lawsuit, on the ground that a foreign court has accepted the case prior to the PRC court, unless (i) the litigants have agreed on selection of the PRC court with jurisdiction, or the dispute falls under exclusive jurisdiction of the PRC court; or (ii) it is evidently more convenient for a PRC court to try the case. Additionally, under the doctrine of forum non conveniens, a People’s Court may choose not to accept a lawsuit if it deems itself an inconvenient forum to hear the dispute. 1.8 Enforcement Priorities Enforcement actions against cartel behaviour remain robust and continuously prioritise sec -

tors of public interest and welfare. The Competi - tion Authorities published a total of eight cartel administrative enforcement decisions in 2024, slightly fewer than the 11 cases in 2023. All eight cases last year were initiated ex officio and tar - geted typical cartel conduct, including price fix - ing, market allocation and output restrictions. It can be observed that enforcement priorities in 2025 have been focused on domestic cartels in traditional industries that are closely related to people’s livelihoods, such as motor vehicle inspection, liquefied gas and rock wool. In addition, the Competition Authorities have held sessions and lectures on antitrust compli - ance targeting major companies in certain indus - trial sectors, like pharmaceutical, automotive, platform economy, etc. 1.9 Guides Published by Governmental Authorities The following regulations/rules/guides can help to understand China’s practice in dealing with cartel conduct (all in Chinese): • Anti-monopoly Guidelines of the Anti-monop - oly Commission of the State Council in the field of Automotive (2019); • Guidelines of the Anti-monopoly Commis - sion of the State Council to the Application of the Leniency System to Horizontal Monopoly Agreement Cases (2019); • Guidelines of the Anti-monopoly Commission of the State Council on Undertakings’ Com - mitments in Monopoly related Cases (2019); • Anti-monopoly Guidelines of the Anti-monop - oly Commission of the State Council in the field of Platform Economy (2021); • Guidelines for Overseas Anti-monopoly Com - pliance of Enterprises (2021); • Provisions on Prohibiting Monopoly Agree - ments (2023);

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