China's new Anti-Unfair Competition laws to aid 'ease of doing business' - (25 Feb 2016)

MRTP/ Competition Laws

China’s Legislative Affairs of the State Council released Draft Amendments to the People’s Republic of China Anti-Unfair Competition Law. Promulgated in 1993 the Anti-Unfair Competition Law regulates passing off, misappropriation of trade secrets, unlawful discounts and also encompasses consumer protection provisions.

The amendments proposed cover a wider gamut of conduct that constitutes unfair competition and enhance penalties that can be imposed by the administration. The changes are also seen as protecting goodwill and brand promotion, and legislate against unauthorised use of ‘commercial signs’ - trademarks.

In its notes on the draft, the Council stated existing laws to have reached saturation in the current economic climate and the vast scope of the market and competition. It termed the 1993 laws as not being suitable for continued economic development for leaving loopholes, and creating non-uniform enforcement standards by decentralising administrative law enforcement. In recent years Chinese authorities have surprised Western firms with legal and policy decisions that have sided with domestic industry brazenly copying and creating imitation designs.