China merger control (2019)
Produced in partnership with King & Capital
China merger control (2019)

The following Competition guidance note Produced in partnership with King & Capital provides comprehensive and up to date legal information covering:

  • China merger control (2019)
  • 1. Have there been any recent developments regarding the China merger control regime and are there any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in China?
  • 2. Under Chinese merger control law, is the control test the same as the EU concept of ‘decisive influence’? If not, how does it differ and what is the position in relation to minority shareholdings?
  • 3. Are joint ventures caught by the national merger control provisions (including non-structural, cooperative joint ventures)?
  • 4. What are the merger control thresholds and would a purely foreign-to-foreign transaction be caught (commenting on any ‘effects’ doctrine/policy if relevant)?
  • 5. Are there any specific issues parties should be aware of when compiling and calculating the relevant turnover for applying the jurisdictional thresholds?
  • 6. Where the jurisdictional thresholds are met, is notification mandatory and must closing be suspended pending clearance?
  • 7. Is there any discretion to review transactions that fall below the notification thresholds?
  • 8. Is it possible to close the deal globally prior to local clearance?
  • 9. Is there a deadline for filing a notifiable transaction and what is the timetable thereafter for review by the SAMR?
  • more

A conversation with Jin Yi, partner in the Beijing office of King & Capital, on key issues on merger control in China.

NOTE–to see whether notification thresholds in China and throughout the world are met, see Where to Notify.

1. Have there been any recent developments regarding the China merger control regime and are there any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in China?

On 17 March 2018, the First Session of the Thirteenth National People's Congress adopted the Decision of the First Session of the Thirteenth National People's Congress on the Plan for the Reform of the Institutions of the State Council, approving the Plan for the Reform of the Institutions of the State Council (the Plan. According to the Plan, the responsibilities of the State Administration for Industry and Commerce (SAIC), the General Administration of Quality Supervision, Inspection and Quarantine, the State Administration for Food and Drug, supervision and inspection of price and anti-monopoly law enforcement of the National Development and Reform Commission (NDRC), anti-monopoly law enforcement of concentrations between undertakings of the Ministry of Commerce (MOFCOM) and the Office of Anti-monopoly Committee of the State Council was to be integrated and the State Administration for Market Regulation (SAMR) shall be established as a direct organ under the State Council. Following