Foreign Investment Climate in China: Present Challenges and Potential for Reform, Hearing Before the U.S.-China Economic and Security Review Commission, January 28, 2015 [open pdf - 3MB]
This testimony compilation is from the January 28, 2015 hearing "The Foreign Investment Climate in China: Present Challenges and Potential for Reform" held before the U.S.-China Economic and Security Review Commission. From the testimony of Maureen K. Ohlhausen: "In fact, China's Anti-Monopoly Law or 'AML,' itself said to have Chinese characteristics, explicitly provides for the consideration of non-competition factors such as protecting 'social public interest' and 'promoting the healthy development of the socialist market economy.' With respect to merger review in particular, the AML provides that when reviewing a transaction, China's Ministry of Commerce, or 'MOFCOM,' should consider factors such as 'the influence of the concentration of business operators on the national economic development.' In addition, Chinese characteristics could mean encouraging immediate economic gains by extracting additional value from intellectual property by reducing the protection of intellectual property rights, particularly the right of exclusion. We are hearing a lot of criticism of Chinese actions in these areas. Importantly, and on a more positive note, we appear to be seeing a serious response to U.S. government engagement by Chinese enforcers that could signal improvement in their approach to these issues. It is also appropriate to recognize that the concerns with AML enforcement in China are not unique. Many new antitrust regimes face limits on staff and their experience, as is the case in China, although with China the importance of our economic relationship makes getting past these limitations all the more important." Statements, letters and materials submitted for the record include those of the following: William A. Reinsch, Daniel Slane, Maureen K. Ohlhausen, Mark A. Cohen, Robert D. Atkinson, Dan Harris, Oded Shenkar, Elizabeth Xiao-Ru Wang, William Kovacic, Gil Kaplan, Joshua Esenman, and Scott Kennedy.
U.S.-China Economic and Security Review Commission: http://www.uscc.gov/