China is sharpening its focus on antitrust enforcement and fair competition as it seeks to bolster the role of private enterprise in its “Chinese-style modernization” strategy.
A lengthy policy statement published today in Qiushi, the Communist Party’s leading theoretical journal, underscores that the private economy is now regarded as a “vital force” for national rejuvenation. The article, authored by the head of the State Administration for Market Regulation (SAMR), makes clear that sustaining private sector growth will depend on strengthening competition law enforcement, dismantling hidden market barriers, and advancing a unified national market.
The statement comes on the heels of significant legislative reform. On 27 June, China’s legislature adopted sweeping revisions to the Anti-Unfair Competition Law, which will take effect on 15 October 2025. The new statute sits alongside the Anti-Monopoly Law, last amended in 2022, and the recently enacted Private Economy Promotion Law, creating what Beijing describes as a more comprehensive legal framework for equal market participation by all forms of ownership.
“Robust antitrust and anti-unfair competition enforcement is an intrinsic requirement of improving the socialist market economy system,” the article states, pledging targeted enforcement against abuses of dominance in platform markets, discriminatory practices in public procurement, and administrative barriers that fragment the national market.
The policy blueprint stresses three priorities:
- Breaking down barriers to entry and factor allocation: Despite repeated central government orders, local “glass doors” and “spring doors” continue to hinder market access for private firms. SAMR vowed stronger oversight to counter discriminatory standards, forced local procurement, and selective enforcement by regional authorities.
- Tackling disorderly and monopolistic competition: The statement highlights concerns about predatory pricing in traditional industries, “involution-style” competition in the digital economy, and the use of data and algorithms by platforms to impose “choose one of two” restrictions or to engage in exploitative pricing. SAMR also pointed to abusive “killer acquisitions” that threaten innovation.
- Strengthening enforcement capacity and compliance tools: Measures include building a four-tier competition review system across central and local government, expanding joint inspections, and introducing compliance guidelines for online platforms, including rules on platform fee-setting. The regulator also pledged to reduce the compliance burden on businesses through credit-based supervision and “first violation exemption” policies for minor infractions.
The policy statement explicitly links China’s competition regime to broader geopolitical challenges. It warns that rising external trade restrictions and supply chain fragmentation are compounding domestic vulnerabilities, underscoring the need for private enterprises to innovate and upgrade. Fair competition enforcement, it argues, is key to preventing “low-end lock-in” and ensuring resilience in the face of external shocks.
As of July 2025, China counted 185 million private market entities, making up more than 96% of all registered businesses. Their contribution to employment, innovation, and growth is seen as indispensable to economic stability at a time of slowing global trade and heightened geopolitical tensions.
For international competition lawyers, today’s statement signals that China is positioning antitrust enforcement not only as a tool of market governance but also as a cornerstone of industrial policy. The simultaneous emphasis on dismantling local protectionism, regulating digital platforms, and encouraging private enterprise suggests that enforcement priorities will remain closely intertwined with the state’s economic development strategy.
Source: https://www.samr.gov.cn/xw/mtjj/art/2025/art_67868a85311e43afb4eba71561c513ad.html
