China's Approach to Anti-trust Issues

By Julian Zhu, Zhong Lun Law Firm, Shanghai

Mergers and acquisitions activity involving foreign investors has been gaining much more publicity in China in the past year. Because foreign investors usually choose established companies that play a leading role in their respective industry as targets, foreign investors can conceivably establish a monopoly position in the relevant industry after a merger or takeover. In such circumstances, legislation on anti-trust issues in relation to M&A by foreign investors has gained more prominence. There are currently different approaches in the PRC legal system for regulation of anti-trust issues in relation to M&A by foreign investors.