China

The fascinating evolution of Chinese public policy poses myriad threats to multinationals as they seek to become leaders in this vast market.  Freshfields, the global law firm, writes intriguingly about the development of private party anti-monopoly litigation in this country.  What strikes us about their description of Article 17(7) as a “catch-all” for “abusive exploitation of dominant market position” is how perfectly the statute seems to be suited for putting pressure on all companies to meet the Chinese government’s social policy ambitions.  The firm, in its research note, refers to the quasi “public advocacy” nature of private suits under these rules.  It seems clear to us that the implicit threat of such actions could exert a very powerful force on multinationals trying to secure positive corporate reputation in China to comply not just with the law, but the government’s social and economic policy objectives as well.

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