China has included the acts of forcing enterprises to transfer technology or set up local branches in its fair-competition review system, according to the country's top market regulator.
The State Administration for Market Regulation (SAMR), together with four other government bodies, jointly released the specific rules for the fair-competition review system on Thursday.
China will improve the fair-competition review system with regard to market entry and exit, the free movement of goods and production factors, and the impact on production and operational costs and conduct.
According to the rules, government authorities are prohibited from setting up unreasonable or discriminatory barriers to entry and withdrawal from the market, granting franchise rights without a fair-competition review, and setting up approval processes for industries and businesses that are outside the market-entry negative list.
Meanwhile, the rules also ban authorities from organizing or guiding market players to form monopolistic arrangements and abuse their dominant market position.
Going forward, relevant departments will investigate and punish in a timely manner those who abuse their administrative powers to exclude and limit competition, said the SAMR.