Page 120 - 2017 White Paper
P. 120
7 White Paper on the Business Environment in China
This Article adjusts the regulatory scope from acts involving unfair competition in different industries,
the previous competitors to uncertain persons, thus etc. The Draft clarifies the general jurisdiction of the
the objects of this Article are no longer limited to administrative authorities for industry and commerce
“competitors”. Whoever fabricates or spreads false over acts of unfair competition, and meanwhile provides
information, makes bad faith comments, or spread that the relevant departments may also supervise and
information that is incomplete or could not be proved, inspect according to the provisions of other related
to damage the business goodwill or the commodity laws and regulations, thus solving the problem that the
reputation of others may violate this Article. competent authorities of other industries dismember the
law enforcement power of the authorities for industry
(5) Clause 3 of Article 10 of the current law reads that, and commerce.
“‘business secrecy’, in this Article, means the technical
information and business information which is unknown (2) The Draft added an additional article, Article 14,
to the public, which is capable of bringing economic which reads that,
benefit to its legal owners, has practicality and is
maintained in secrecy by its legal owners”. “operators may not engage in other acts of unfair
competition which may damage the legitimate rights
In the Draft, the above clause is amended to: and interests of others and disturb market order. Other
“Clause 3 of Article 9: ‘Business secrecy’, in this acts of unfair competition’ in the preceding clause shall
Law means the technical information and business be determined by the Department for Industry and
information which is unknown to the public, has business Commerce under the State Council”
value and is maintained in secrecy by its legal owners”.
This Article is a miscellaneous provision regarding
This Clause deletes the restriction of “which is capable acts of unfair competition and the power of the State
of bringing economic benefit to its legal owners, has Administration for Industry and Commerce to determine
practicality” in the current law, further expanding the acts of unfair competition, which includes the new acts of
scope of business secrets. unfair competition lacking current legal regulations that
may appear in the future, within the regulatory scope
2. Strengthen the Operability of Specific Enforcement of the current law and solve the problem of legislation
of Law by the Administration of Industry and Commerce unable to enumerate all types of wrongful acts within the
and Market Supervision scope of the law.
(1) Clause 2 of Article 3 of the current law reads that, (3) Article 17 of the current law reads that,
“the administrative authorities for industry and “in supervising and inspecting acts of unfair
commerce in the people’s governments at or above the competition, the supervising and inspecting authorities
county-level shall supervise and inspect acts of unfair are entitled to exercise the following functions and
competition. In respect to the acts which, according powers:
to the provisions of various laws and administrative · to question the operators under suspicion, interested
regulations, shall be supervised and inspected by other parties and witnesses in accordance with the prescribed
departments, these provisions shall be abided by”. procedures, requiring them to provide documentary
evidence or other information related to acts of unfair
In the Draft, the above Clause is amended to: competition;
“Clause 2 of Article 3: The administrative authorities · to inquire and copy written agreements, books of
for industry and commerce in the people’s governments account, receipts, bills, vouchers, invoices, documents,
at or above the county-level shall supervise and inspect records, business correspondence and other materials
acts of unfair competition. If there are provisions as other related to acts of unfair competition; and
otherwise stipulated in other laws and administrative · to inspect the properties related to acts of unfair
regulations, the relevant departments may also supervise competition as stipulated in Article 5 of this Law, and,
and inspect according to said provisions”. where necessary, ordering the operators under inspection
to explain the source and quantity of the goods, to
The current Law has problems such as different temporarily stop selling the goods pending inspection,
standards of determination and punishment criterion of and not to remove, conceal or destroy the goods”.
120
This Article adjusts the regulatory scope from acts involving unfair competition in different industries,
the previous competitors to uncertain persons, thus etc. The Draft clarifies the general jurisdiction of the
the objects of this Article are no longer limited to administrative authorities for industry and commerce
“competitors”. Whoever fabricates or spreads false over acts of unfair competition, and meanwhile provides
information, makes bad faith comments, or spread that the relevant departments may also supervise and
information that is incomplete or could not be proved, inspect according to the provisions of other related
to damage the business goodwill or the commodity laws and regulations, thus solving the problem that the
reputation of others may violate this Article. competent authorities of other industries dismember the
law enforcement power of the authorities for industry
(5) Clause 3 of Article 10 of the current law reads that, and commerce.
“‘business secrecy’, in this Article, means the technical
information and business information which is unknown (2) The Draft added an additional article, Article 14,
to the public, which is capable of bringing economic which reads that,
benefit to its legal owners, has practicality and is
maintained in secrecy by its legal owners”. “operators may not engage in other acts of unfair
competition which may damage the legitimate rights
In the Draft, the above clause is amended to: and interests of others and disturb market order. Other
“Clause 3 of Article 9: ‘Business secrecy’, in this acts of unfair competition’ in the preceding clause shall
Law means the technical information and business be determined by the Department for Industry and
information which is unknown to the public, has business Commerce under the State Council”
value and is maintained in secrecy by its legal owners”.
This Article is a miscellaneous provision regarding
This Clause deletes the restriction of “which is capable acts of unfair competition and the power of the State
of bringing economic benefit to its legal owners, has Administration for Industry and Commerce to determine
practicality” in the current law, further expanding the acts of unfair competition, which includes the new acts of
scope of business secrets. unfair competition lacking current legal regulations that
may appear in the future, within the regulatory scope
2. Strengthen the Operability of Specific Enforcement of the current law and solve the problem of legislation
of Law by the Administration of Industry and Commerce unable to enumerate all types of wrongful acts within the
and Market Supervision scope of the law.
(1) Clause 2 of Article 3 of the current law reads that, (3) Article 17 of the current law reads that,
“the administrative authorities for industry and “in supervising and inspecting acts of unfair
commerce in the people’s governments at or above the competition, the supervising and inspecting authorities
county-level shall supervise and inspect acts of unfair are entitled to exercise the following functions and
competition. In respect to the acts which, according powers:
to the provisions of various laws and administrative · to question the operators under suspicion, interested
regulations, shall be supervised and inspected by other parties and witnesses in accordance with the prescribed
departments, these provisions shall be abided by”. procedures, requiring them to provide documentary
evidence or other information related to acts of unfair
In the Draft, the above Clause is amended to: competition;
“Clause 2 of Article 3: The administrative authorities · to inquire and copy written agreements, books of
for industry and commerce in the people’s governments account, receipts, bills, vouchers, invoices, documents,
at or above the county-level shall supervise and inspect records, business correspondence and other materials
acts of unfair competition. If there are provisions as other related to acts of unfair competition; and
otherwise stipulated in other laws and administrative · to inspect the properties related to acts of unfair
regulations, the relevant departments may also supervise competition as stipulated in Article 5 of this Law, and,
and inspect according to said provisions”. where necessary, ordering the operators under inspection
to explain the source and quantity of the goods, to
The current Law has problems such as different temporarily stop selling the goods pending inspection,
standards of determination and punishment criterion of and not to remove, conceal or destroy the goods”.
120
