Does China have an anti-trust law wherein a foreign investor has to consider when entering into a merger and acquisition deal?
At present, China does not have a proper anti-trust law or regulation. However, a foreign investor may wish to note that in the Provisions Concerning Merger and Division of Foreign Investment Enterprises (the "Merger Provisions"), the issue of anti-trust was considered. The Ministry of Foreign Trade and Economic Cooperation (MOFTEC) issued the Merger Provisions. In considering an application for a merger and acquisition, MOFTEC shall, if it is of the opinion that the transaction would ultimately lead to a monopoly, hold a hearing with the relevant government bodies or where necessary, conduct a market survey. Indeed, currently the decision by the government authorities is discretionary until a proper clear-cut anti-trust law is drafted.
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