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Peter Corne, Carl Hinze, Steve Yu, Aug 11, 2008
Olympic competition is not the only form of competition that China will be endorsing this August. On August 1, 2008, China’s Antimonopoly Law came into effect. Two days later, the State Council’s Regulations on Notification Standards of Concentrations of Undertakings was officially promulgated and also made effective. The Merger Filing Rules, which supplement the AML, set out the trigger thresholds for merger filings in China. In this article, we review the key focal points of the AML and Merger Filing Rules, offer a few criticisms and identify instances where China has deviated from antimonopoly laws in other jurisdictions, and examine challenges facing the AML’s enforcement. We conclude with some thoughts on the AML’s effectiveness and its potential impact on foreign companies operating in China.