Fair Competition Regulations: Eliminate phenomena such as “glass doors” and “revolving doors”

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《 The Fair Competition Review Regulations will come into effect on August 1 this year. The State Council Information Office held a regular briefing on State Council policies today (21st) morning to introduce the relevant situation of the Fair Competition Review Regulations.

As my country\’s first administrative regulation on fair competition review, what issues does the \”Regulations\” focus on solving? What is the main content? Guo Qiwen, head of the Second Legislative Bureau of the Ministry of Justice, said:

Fair competition is the basic principle of market economy and an objective requirement for building a unified national market. Since the establishment and implementation of my country\’s fair competition review system in 2016, it has played a positive role in standardizing administrative powers and ensuring operators\’ fair participation in market competition. However, there are also some problems during the implementation process. In some places and fields, fair competition reviews of policies and measures are not carried out as required, resulting in discriminatory and differential treatment of operators, especially private enterprises, in terms of market access, factor acquisition, government procurement, bidding, incentives and subsidies, etc., and local protection , regional blockades and industry barriers still exist, and phenomena such as \”no entry, no business\”, \”glass door\” and \”revolving door\” have not been eliminated.

In response to these problems, the Ministry of Justice, together with the State Administration for Market Regulation, drafted the Regulations from the perspective of further improving the rules of the fair competition review system in response to some outstanding issues existing in the fair competition review. The main content of the \”Regulations\” includes five aspects:

First, it stipulates the subject and scope of fair competition review. Review entities include administrative agencies and organizations authorized by laws and regulations to manage public affairs. The scope of the review is the texts of laws, administrative regulations, local regulations, rules, normative documents and specific policy measures involving the economic activities of operators during the drafting process.

The second is to stipulate the responsibilities of relevant parties. The State Council has established a fair competition review and coordination mechanism. The market supervision and administration department of the State Council is responsible for guiding the implementation of the fair competition review system. Local People\’s Government at or above the county levelThe government\’s market supervision and administration department is responsible for organizing and implementing the fair competition review system within its own administrative region.

The third is to clarify the review standards for fair competition. The \”Regulations\” clarify the review standards from four aspects, that is, policy measures must not contain content that restricts or disguises restrictions on market access and exit, restricts the free flow of goods and factors, affects production and operation costs without legal basis, and affects producers\’ business behavior. At the same time, exceptional institutional arrangements have also been made for fair competition review of specific policy measures such as safeguarding national security and realizing social and public interests.

The fourth is to clarify the fair competition review mechanism. The \”Regulations\” stipulate that for policies and measures to be promulgated by departments, the drafting unit or the leading drafting unit shall conduct a fair competition review; for policies and measures to be promulgated by the people\’s government or submitted to the National People\’s Congress and its Standing Committee for review, the market supervision and administration department shall jointly conduct the drafting unit Conduct a review. At the same time, the Regulations encourage qualified regions to explore the establishment of cross-regional and cross-department fair competition review working mechanisms.

The fifth is to strengthen the review, supervision and guarantee of fair competition. In order to ensure the implementation of the fair competition review system, a special chapter of the Regulations stipulates a series of supervisory and safeguard measures such as spot checks, reports, supervision, interviews, etc., to further strengthen the rigid constraints of the fair competition review system.

Look at the news reporter: Li Bolin

Editor: Chang Ying

Editor: Ding Tao