Opinion | Chinese antitrust regulators must address charges of anti-foreigner bias
Hu Shuli calls on officers to adhere to procedural standards in their investigations, and widen the scope of their scrutiny to state-owned giants
Once mocked as a "toothless tiger", China's anti-monopoly law is finally demonstrating some bite, six years after it took effect.
The three agencies responsible for enforcing it - the National Development and Reform Commission, the Ministry of Commerce and the State Administration for Industry and Commerce - recently launched a wave of antitrust investigations mainly targeting multinationals. While some people approve of such strict enforcement, the crackdown has nevertheless raised questions about bias and whether foreign companies were being singled out.
Such a worry is not unfounded. The number of multinational companies under investigation has markedly increased, and now includes Microsoft, Qualcomm, Mercedes-Benz and Chrysler, among many others.
Just a week ago, the NDRC slapped a record fine of 1.24 billion yuan (HK$1.6 billion) on 12 Japanese auto parts suppliers. The heavy penalty ignited fresh speculation and panic among investors. Even observers in China see the crackdown as a move by the regulators to help local firms gain market share.
Through it all, the regulators have denied an anti-foreigner bias and insist that all are equal before the law.
China's anti-monopoly law has been described as no less than its "economic constitution". Indeed, it plays a major role in the protection of fair market competition and, in China's case, also serves as a tool to sever the unhealthy links between government and business in many administrative departments.
The legislation itself was passed only after many years of effort. It must not remain words on paper. Since its enactment, sadly, market development in some sectors has regressed, undermining the foundations for its enforcement.