China has a mandatory and suspensory merger control regime under the Anti-Monopoly Law (AML), which was adopted in 2007 and came into effect on 1 August 2008. Transactions that meet the definition of ‘concentration’ as well as prescribed turnover thresholds must be notified to the Chinese merger control authority, i.e. the Anti-Monopoly Bureau (AMB) of the Ministry of Commerce (MOFCOM). The AML also contains a broad prohibition on anti-competitive agreements and the abuse of dominant market position, as well as provisions dealing with abuse of administrative power by regulatory bodies.

The AML replaces an earlier merger review regime under the Provisions on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (‘the 2006 M&A Rules’). Unlike the position under the 2006 M&A Rules, the new merger control regime applies equally to mergers and acquisitions by both foreign and domestic undertakings.

The authorities have published several implementation rules and guidelines since the AML came into force. However, there are still a number of unresolved issues as at the date of publication, including the way in which the regime applies to joint ventures. The new merger control regime in China is expected to be further supplemented over time by more detailed implementation regulations and through enforcement activity.