China: Foreign firms lawyer-up among tense competition law enforcement

Foreign firms operating in China are reportedly getting increasingly skittish regarding domestic competition regulators’ skepticism of their business, despite claims by Chinese officials that such skepticism is not solely directed at foreign companies.

Recent investigations by Chinese watchdogs have lead to major crackdown on foreign firms. The most prominent recent case involved reported record fines issued to several international makers of instant infant milk formula for price-fixing allegations, but other industries – including telecommunications, banks and pharmaceuticals – are also proving to be major targets.

In response, reports say such foreign companies are hiring lawyers to ensure their operations are in compliance with Chinese competition law.

The instant milk price-fixing case seemingly launched the nation’s antimonopoly law, now five years old, into major importance for the government to enforce. Following the case, officials reportedly warned that harsher crackdowns were to come.

Full Content: Reuters

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