China's Anti-Monopoly Law: Protectionism or a Great Leap Forward?

Abstract

Thirty years since China’s markets opened to the world, the People’s Republic has seen impressive growth, in large part due to an openness to foreign investment. In 2009, China was one of few nations to experience GDP growth. With a market based on competition for the first time in decades, China has begun to promulgate antitrust legislation to curb anticompetitive behavior. The creation of an Anti-Monopoly Law in 2008 has prompted concern from outside China that the law will be used to promote a protectionist agenda, shielding Chinese domestic industry from foreign competition or investment. This Note examines the root cause of such concerns using a recent decision by Chinese antitrust authorities to prevent a merger between a domestic Chinese fruit juice company and Coca-Cola. This Note recommends an implementation of merger guidelines by the Chinese government in order to provide more transparency in its antitrust regime.