Page 42 - 2017 White Paper
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7 White Paper on the Business Environment in China
affected foreign companies. Moreover, fines imposed on Emphasizing the Rule of Law
state-owned enterprises were not less than those levied
on foreign companies, Mr. Wang said. He added that, if Continuing the reform platform boldly introduced
anything, China will be tougher on Chinese companies during the Third Plenum in 2013 and recognizing that in
than on their foreign competitors. He explained that order to make these reforms work, it is vital for China to
the intensified enforcement of the anti-monopoly law have strong regulatory institutions, the Fourth Plenum of
“reflected China’s transition to ongoing supervision of the CCP’s 18th Party Congress in October 2014, passed the
companies and markets, rather than simply approving Decisions on Major Issues about Promoting the Rule of
companies’ plans and then failing to monitor their Law in a Comprehensive Way, laying down the framework
activities” (Jarrett 2014). for a series of regulations about the development of a
market economy, including power list, setting restrictions
Also in September 2014, Chinese regulators echoed on rent-seeking, protecting property rights, opposing
Vice Premier Wang’s comments and denied allegations monopolization and stimulating innovation. Chinese
made by foreign business groups that China is using its media reported that all these regulations aim to draw
anti-monopoly law to unfairly target foreign companies. a line between the government and the market, and
In a rare joint press briefing, according to the Wall Street focus on building a legalized, regulatory economy. These
Journal, Xu Kunlin, an official at the National Development regulations will, the report said, “no doubt play an active
Reform Commission accompanied by senior officials of role in keeping a fair competitive environment, improving
the Ministry of Commerce and the State Administration economic effectiveness. The dividends brought about
for Industry and Commerce, three of the main entities by these regulations will help greatly China’s economic
that have been spearheading anti-monopoly and pricing transformation and upgrading” (Li 2014).
investigations of the commercial sector in China, said
that China treats foreign and domestic companies fairly In an October 2014 editorial released after the
and reiterated that China does not specifically foreign Fourth Plenum (whose main topic of discussion was
companies for anomalies probes (Yang and Laurie 2014). implementing a stronger rule of law), People’s Daily,
the de facto broadcaster of political agendas from the
The same report speculates that Chinese regulators perspective of the Communist Party of China, defined the
may be trying to“curry favor”with the general population “rule of law”as“governance according to the Constitution.
by tackling high consumer prices in China. Critics claim To respect the Constitution and implement it in letter and
that Chinese regulators have used “questionable tactics”, spirit is to lay the foundation of the socialist rule of law
the Wall Street Journal says, such as advising companies with Chinese characteristics” (People's Daily 2014).
under investigation not to seek legal representation,
“to control product pricing in industries ranging from That same month, various online Chinese netizens
dairy to auto parts”. Mr. Xu countered by declaring that and academics took to the interwebs to express their
those companies have been allowed to bring their own opinion about the rule of law in China, as aggregated by
legal counsel to meetings. Ren Airong, a director of China Daily (China Daily 2014a):
antimonopoly at the State Administration for Industry
and Commerce, added that during the Microsoft (The following are quoted verbatim from China Daily
investigation, regulators were frequently outnumbered 2014a)
by the software company’s lawyers (Yang and Laurie
2014). “To prevent the authorities from abusing the law, it is
necessary to promote transparency in governance and
According to the Wall Street Journal, Chinese allow ordinary citizens to supervise power. Sunshine
companies haven’t been spared the intensified scrutiny. is the best cure for corruption and an indispensable
Last September, regulators fined three Chinese cement guarantee of the rule of law.”
companies a combined US$18.6 million for price fixing
(Yang and Laurie 2014). fawan.com, Oct 15
42 “Much needs to be done to establish the rule of law
in a society that had long been under the rule of man.
Officials can abuse their power, while citizens dare not
challenge their illegal behavior. Rooting the spirit of the
affected foreign companies. Moreover, fines imposed on Emphasizing the Rule of Law
state-owned enterprises were not less than those levied
on foreign companies, Mr. Wang said. He added that, if Continuing the reform platform boldly introduced
anything, China will be tougher on Chinese companies during the Third Plenum in 2013 and recognizing that in
than on their foreign competitors. He explained that order to make these reforms work, it is vital for China to
the intensified enforcement of the anti-monopoly law have strong regulatory institutions, the Fourth Plenum of
“reflected China’s transition to ongoing supervision of the CCP’s 18th Party Congress in October 2014, passed the
companies and markets, rather than simply approving Decisions on Major Issues about Promoting the Rule of
companies’ plans and then failing to monitor their Law in a Comprehensive Way, laying down the framework
activities” (Jarrett 2014). for a series of regulations about the development of a
market economy, including power list, setting restrictions
Also in September 2014, Chinese regulators echoed on rent-seeking, protecting property rights, opposing
Vice Premier Wang’s comments and denied allegations monopolization and stimulating innovation. Chinese
made by foreign business groups that China is using its media reported that all these regulations aim to draw
anti-monopoly law to unfairly target foreign companies. a line between the government and the market, and
In a rare joint press briefing, according to the Wall Street focus on building a legalized, regulatory economy. These
Journal, Xu Kunlin, an official at the National Development regulations will, the report said, “no doubt play an active
Reform Commission accompanied by senior officials of role in keeping a fair competitive environment, improving
the Ministry of Commerce and the State Administration economic effectiveness. The dividends brought about
for Industry and Commerce, three of the main entities by these regulations will help greatly China’s economic
that have been spearheading anti-monopoly and pricing transformation and upgrading” (Li 2014).
investigations of the commercial sector in China, said
that China treats foreign and domestic companies fairly In an October 2014 editorial released after the
and reiterated that China does not specifically foreign Fourth Plenum (whose main topic of discussion was
companies for anomalies probes (Yang and Laurie 2014). implementing a stronger rule of law), People’s Daily,
the de facto broadcaster of political agendas from the
The same report speculates that Chinese regulators perspective of the Communist Party of China, defined the
may be trying to“curry favor”with the general population “rule of law”as“governance according to the Constitution.
by tackling high consumer prices in China. Critics claim To respect the Constitution and implement it in letter and
that Chinese regulators have used “questionable tactics”, spirit is to lay the foundation of the socialist rule of law
the Wall Street Journal says, such as advising companies with Chinese characteristics” (People's Daily 2014).
under investigation not to seek legal representation,
“to control product pricing in industries ranging from That same month, various online Chinese netizens
dairy to auto parts”. Mr. Xu countered by declaring that and academics took to the interwebs to express their
those companies have been allowed to bring their own opinion about the rule of law in China, as aggregated by
legal counsel to meetings. Ren Airong, a director of China Daily (China Daily 2014a):
antimonopoly at the State Administration for Industry
and Commerce, added that during the Microsoft (The following are quoted verbatim from China Daily
investigation, regulators were frequently outnumbered 2014a)
by the software company’s lawyers (Yang and Laurie
2014). “To prevent the authorities from abusing the law, it is
necessary to promote transparency in governance and
According to the Wall Street Journal, Chinese allow ordinary citizens to supervise power. Sunshine
companies haven’t been spared the intensified scrutiny. is the best cure for corruption and an indispensable
Last September, regulators fined three Chinese cement guarantee of the rule of law.”
companies a combined US$18.6 million for price fixing
(Yang and Laurie 2014). fawan.com, Oct 15
42 “Much needs to be done to establish the rule of law
in a society that had long been under the rule of man.
Officials can abuse their power, while citizens dare not
challenge their illegal behavior. Rooting the spirit of the
