pdf

Draft Revisions to Chinese Anti-Unfair Competition Law

March 14, 2016

The 1993 Anti-Unfair Competition Law (“AUCL”)[1] was among the first major laws of China’s “reform and opening up” period to target unfair and anticompetitive practices in the course of market behavior. It establishes offenses for trademark and trade dress infringement, commercial bribery, false and deceptive advertising, misappropriation of trade secrets, trade libel or disparagement, misuse of sales incentives and sweepstakes, and various anticompetitive practices. On February 25, 2016, the State Council released for public comment draft revisions[2] to the AUCL that would materially change Chinese law in two areas of rising concern for multinational companies active in China: commercial bribery and antitrust. If enacted, the draft revisions would overhaul China’s basic prohibition of commercial bribery, delete obsolete antitrust provisions of the AUCL, and introduce sweeping new rules against the “abuse of a relative advantageous position.” Some proposed revisions codify current enforcement practice or adapt principles from foreign regimes, but the proposed language raises many questions about the future of scope and targets of AUCL enforcement.

Click here to read the whole article.


[1] See Zhonghua Renmin Gongheguo Fanbuzhengdang Jingzheng Fa [Anti-Unfair Competition Law of the People’s Republic of China] (promulgated by the Standing Committee of the National People’s Congress on Sept. 2, 1993 and effective Dec. 1, 1993), available here.

[2] See Zhonghua Renmin Gongheguo Fanbuzhengdang Jingzheng Fa (Xiuding Cao’an Songshengao)[Draft Revisions to the Anti-Unfair Competition Law of the People’s Republic of China Submitted for Review] (released by the State Council on Feb. 25, 2016 for public comments), available here.


O'Melveny & Myers LLP is a foreign law firm registered with the Ministry of Justice of the People's Republic of China. Under current Chinese regulations, we are allowed to provide information concerning the effects of the Chinese legal environment, but we are not authorized to practice Chinese law or to render legal opinions in respect of Chinese law. We work in cooperation with a number of Chinese law firms. Should you require a legal opinion in respect of any Chinese law matter, we would be happy to assist you in obtaining one from a Chinese firm.

This memorandum is a summary for general information and discussion only and may be considered an advertisement for certain purposes. It is not a full analysis of the matters presented, may not be relied upon as legal advice, and does not purport to represent the views of our clients or the Firm. Nathan Bush, an O'Melveny partner licensed to practice law in District of Columbia, and Virginia, Bingna Guo, an O'Melveny partner licensed to practice law in New York, Lining Shan, an O'Melveny senior legal consultant in O'Melveny's Beijing office, and Sean Wu, an O'Melveny associate licensed to practice law in New York, contributed to the content of this newsletter. The views expressed in this newsletter are the views of the authors except as otherwise noted.

Portions of this communication may contain attorney advertising. Prior results do not guarantee a similar outcome. Please direct all inquiries regarding New York's Rules of Professional Conduct to O’Melveny & Myers LLP, Times Square Tower, 7 Times Square, New York, NY, 10036, Phone:+1-212-326-2000. © 2016 O'Melveny & Myers LLP. All Rights Reserved.