On January 26, 2024, the new Provisions on the Notification Standards for Concentration of Undertakings were promulgated and came into effect. The new standard raises the threshold for undertakings to declare the concentration of undertakings to the anti-monopoly law enforcement agency, and raises the standards for the total global and domestic turnover and the unilateral turnover in China from the current 10 billion yuan, 2 billion yuan and 400 million yuan to 12 billion yuan, 4 billion yuan and 800 million yuan. As a result, investment and M&A transactions that have the obligation to report under the old reporting standards do not need to be reviewed for concentration of undertakings, and the number of declarations is expected to be reduced by 30%, which reduces the cost of the investment and M&A system, which is conducive to further stimulating the vitality of business entities and consolidating and enhancing the positive trend of economic recovery. We will take this revision as an opportunity to adhere to the guidance of the socialist ideology with Chinese characteristics in the new era, and serve the high-quality development of the economy and society with high-quality review of concentration of undertakings.
**The General Secretary stressed that high-quality development is the primary task of building a modern socialist country in an all-round way. Since the implementation of the Anti-Monopoly Law in 2008, especially since the 18th National Congress of the Communist Party of China, under the strong leadership of Comrade Zheng as the core, the review of concentration of undertakings has coordinated the development and safety, efficiency and fairness, vitality and order, domestic and international, and provided strong support for high-quality economic development.
The competitive environment continues to be optimized. The purpose of the review is to maintain fair competition in the market and create a good business environment and space for innovative development for all types of business entities. Since 2008, a total of 5,787 cases have been concluded, including 5,723 unconditional approvals, 61 conditional approvals, and 3 prohibitions, involving a transaction amount of more than 60 trillion yuan, effectively maintaining a unified, open, competitive and orderly market system, effectively ensuring the safety and stability of the industrial chain, and providing strong support for the development of China's advanced industries.
The effectiveness of the review is constantly improving. Implement a categorical review system for simple and non-simple cases, and implement a "double 20 days" requirement for acceptance and review time for simple cases, continuously improving the efficiency of review. The pilot project entrusts the market supervision departments of five provinces (municipalities) including Beijing to carry out the review work, establish a two-level review mechanism, give full play to the advantages of local departments close to the market and close to enterprises, and serve enterprises in investment and mergers and acquisitions "one step ahead". It is the first in the world to operate the world's leading concentration business system to facilitate online declaration by enterprises.
Institutional norms are becoming clearer. Vigorously promote the establishment of a concentration system for undertakings, and provide clear, clear and predictable institutional norms for market investment. Amend the Anti-Monopoly Law to improve the design of the top-level system for the review of concentration of undertakings. The Provisions on the Review of Concentration of Undertakings and the Anti-Monopoly Compliance Guidelines for Concentration of Undertakings have been revised to clarify the review procedures and standards. At present, a system of institutional norms consisting of one law, one administrative regulation, two departmental rules and a series of documents has been established, and the review work is progressing in an orderly manner on the track of the rule of law.
Overseas services are more powerful. Actively participate in the negotiation of international competition rules, promote the convergence and integration of competition rules, and provide guarantees for the smooth development of investment activities. The Guidelines for Overseas Anti-Monopoly Compliance of Enterprises have been issued to guide Chinese enterprises to respond to overseas anti-monopoly litigation and investigations, guide enterprises to strengthen overseas anti-monopoly compliance, and reduce anti-monopoly legal risks.
Looking back on the past, the review of concentration of undertakings adhered to integrity and innovation, and achieved innovative development from scratch and from effective to efficient in the process of continuous iterative upgrading, which fully embodies the important concept of attaching equal importance to supervision and service, and serving supervision. The achievement of these achievements lies fundamentally in the strong leadership of the first comrade as the core, and in the scientific guidance of the first socialist thought with Chinese characteristics in the new era. We must earnestly unify our thoughts and actions with the scientific judgment of the economic situation and the decision-making and deployment of economic work with Comrade *** as the core, adhere to high-quality development as the last word in the new era, completely, accurately and comprehensively implement the new development concept, strive to build a new development pattern, and solidly promote high-quality development.
Further improve the efficiency of examinations. Deepen the reform and innovation of the review system, optimize the review of simple cases, simplify the application documents and materials of simple cases, and reduce the cost of the M&A system. Improve the review system for entrusted pilots, give full play to the effectiveness of the market supervision system, improve the efficiency of review, and maintain fair competition in the market.
Further service enterprise declaration. We will do a good job in publicizing and implementing the "Provisions on the Criteria for Notification of Concentration of Undertakings", and study and formulate the "Guidelines for the Review of Horizontal Concentration of Undertakings" and the "Technical Specifications for the Anti-monopoly Review and Declaration of Concentration of Undertakings", standardize the review work, and provide clear guidance for enterprises to make efficient declarations.
Further stimulate the vitality of the market. Promote the "green channel" for the review of concentration of undertakings, speed up the review of cases without competition issues, support the upgrading and transformation of traditional industries and the development of strategic emerging industries, and help mergers and acquisitions in real estate and other fields to resolve risks. Innovate regulatory methods, unify discretionary standards, blend leniency with severity, and reflect the temperature of law enforcement in the performance of duties in accordance with law.
Further improve normalized communication. Establish and improve the normalized communication and exchange mechanism with private enterprises, foreign-funded enterprises and other enterprises, gain an in-depth understanding of new situations and new problems, improve review work in a timely manner, support enterprises to implement centralization in accordance with the law, and further boost confidence and stabilize expectations.
Further deepen international exchanges. Expand high-level institutional opening-up in the field of competition, and build the brand of "Invest in China". Promote regular exchanges with law enforcement agencies in major jurisdictions in Europe and the United States. Strengthen the response and guidance of overseas anti-monopoly litigation and investigations, safeguard the legitimate rights and interests of Chinese enterprises, and actively support Chinese enterprises to "go global".
Facing the future, we will be guided by the thought of socialism with Chinese characteristics in the new era, fully implement the spirit of the 20th National Congress of the Communist Party of China and the 2nd Plenary Session of the 20th Central Committee of the Communist Party of China, implement the deployment of the first economic work conference, adhere to the principle of seeking progress while maintaining stability, promoting stability with progress, and establishing first and then breaking down, continuously optimize the review of concentration of undertakings, serve in supervision, maintain fair competition in the market, continue to stimulate the vitality of business entities, and contribute to promoting high-quality economic development.
The author, Xu Xinjian, is the Anti-Monopoly Director of the State Administration for Market Regulation **Economy**).
*:Economy**.