Competition policy in China and its relevance to SMEs

Article

Zhang, Yahua and Round, David K.. 2012. "Competition policy in China and its relevance to SMEs." Frontiers of Law in China. 7 (1), pp. 21-38. https://doi.org/10.3868/s050-001-012-0002-9
Article Title

Competition policy in China and its relevance to SMEs

ERA Journal ID36685
Article CategoryArticle
AuthorsZhang, Yahua (Author) and Round, David K. (Author)
Journal TitleFrontiers of Law in China
Frontiers of Law in China: selected publications from chinese Universities
Journal Citation7 (1), pp. 21-38
Number of Pages18
Year2012
Place of PublicationBeijing, China
ISSN1673-3428
1673-3541
Digital Object Identifier (DOI)https://doi.org/10.3868/s050-001-012-0002-9
Web Address (URL)http://journal.hep.com.cn/webpub/cipub/articledetail?articleid=67125640-68E5-11E1-BD17-E52C9BCDABC5&journalid=4&jyear=2012&issue=1&type=
Abstract

Competition policy has great relevance to all the firms in any economy. Even though it is unlikely that small and medium-sized enterprises (SMEs) have enough market power to constrain competition through a misuse of such power, they may still face prosecution if they are involved in a boycott of competitors or suppliers, price-fixing, output-restriction and other monopoly agreements. This article discusses antitrust issues pertaining to SMEs with a focus on China's Anti-Monopoly Law (AML) and its implementation rules. Contrary to the popular view that SMEs benefit from competition laws, evidence shows that they are reluctant to get involved in antitrust litigation against large firms partly because of the high legal costs involved. There is an urgent need to promote an awareness of antitrust compliance in China and to educate SMEs about the need to avoid breaching the new antitrust law and its associated regulations. In the meantime, SMEs should take full advantage of the antitrust laws to fight against the abuse of market dominance directed at them, and to gain equal opportunities to market access.

Keywordscompetition policy; SMEs; China; AML; public interest
ANZSRC Field of Research 2020380109. Industry economics and industrial organisation
440703. Economic development policy
480699. Private law and civil obligations not elsewhere classified
Byline AffiliationsSchool of Accounting, Economics and Finance
University of South Australia
Institution of OriginUniversity of Southern Queensland
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