A question of strategy
There is more to dispute resolution in China than meets the eye. By making strategic choices, foreign businesses can maximise their chances of winning anti-monopoly and IP disputes
Issue: February 2012
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Foreign businesses and their legal advisers often discuss how to weigh different dispute resolution methods such as mediation, arbitration and litigation to better protect their interests in China. They seem to have little understanding of other important options such as administrative review and administrative litigation, let alone considering carefully how these options could be used strategically to handle anti-monopoly and intellectual property issues.
The implications of this issue for anti-monopoly disputes are significant, as reflected in Article 53 of the 2007 PRC Anti-monopoly Law (中华人民共和国反垄断法) (AML). The provision stipulates, among other things, that if a business operator is dissatisfied with a decision made by agencies in charge of investigating monopolistic acts such as “monopoly agreements reached between business operators” and “abuse of dominant market position by business operators”, the business operator “may apply for administrative review or lodge an administrative lawsuit according to law [author’s note: this means...