Beijing, December 29, 2025 — The Chinese authority has released revised rules aimed at preventing the abuse of administrative power to exclude or restrict markets, with the new framework set to take effect on February 1, 2026.
The updated provisions, issued by the State Administration for Market Regulation, refine the rules governing conduct by public authorities that interferes with market activity. The authority said the revisions respond to evolving forms of administrative intervention that complicate enforcement, including the use of local performance indicators, awards, tax and social security contributions as favorable factors in corporate credit evaluations, and the application of such evaluations in public tendering to disadvantage non-local firms.
Addressing New Forms of Intervention
According to the authority, these practices have increasingly distorted market outcomes, making it more difficult for enforcers to accurately identify unlawful conduct. The revisions also seek to address inconsistencies in how some local authorities apply administrative interviews and recommendations during enforcement.
Key Changes
The revised rules introduce changes across five main areas, including stronger accountability mechanisms, clearer procedural coordination, closer alignment with the fair competition review system, tighter conditions for closing cases through corrective measures, and broader use of enforcement tools to improve effectiveness.
New provisions specify that where an investigated entity refuses to adopt fair competition review opinions lawfully issued by market regulators, continues abusive conduct after being urged to stop, has previously been subject to enforcement action within five years, or carries out sham rectification without removing market restrictions, the enforcement authority should generally recommend disciplinary action against directly responsible officials when issuing administrative recommendations.
In serious cases or where significant negative effects arise, the authority may also copy such recommendations to supervisory bodies to strengthen accountability for responsible personnel.
The authority said the revisions are intended to reinforce deterrence and improve consistency in addressing administrative conduct that undermines market-based allocation of resources.
Source: https://www.samr.gov.cn/xw/mtjj/art/2025/art_15c98653a8a449cfaac145afcad8adc2.html
