Regulating a Free Trade Zone - Ensuring the success of the Shanghai Free Trade Zone through effective competition

This paper discusses the adoption and enforcement of a competition law regime in the Shanghai Free Trade Zone (Shanghai FTZ) in order to regulate the free market and ensure its continued success through effective competition.

The Chinese competition regime is comprehensive, covering mergers, monopoly agreements and abuse of dominance. The regime has many similarities with the EU and UK regimes, which is unsurprising given that the Chinese regime was modelled on other more established jurisdictions, including the EU and the UK.

However, there are certain aspects of the EU and UK regimes which do not feature in the Chinese competition regime, but which may assist in the enforcement of the Chinese competition regime. The Shanghai FTZ offers an opportunity for the Chinese authorities to trial such provisions, which could help to achieve the Shanghai FTZ ’s objectives and, simultaneously, road test new approaches in a contained environment and which could then be applied more broadly in China if effective.

Key discussion points

  • Consider potential reforms to the Chinese competition regime, by reference to the EU and UK competition law regimes, which could be trialled in the Shanghai FTZ
  • Consider whether there should be a reform to the Anti-Monopoly Law enforcement authorities.


You can also download this report in Chinese.