China’s relentless drive to build a national unified market has taken center stage as regulators intensify efforts to dismantle regional barriers, curb monopolistic behaviors, and rein in platform excesses. At a recent press conference held by the State Council Information Office, officials detailed the sweeping measures undertaken during the 14th Five-Year Plan period to ensure high-quality market regulation and foster fair competition. With landmark cases involving live-streaming e-commerce entities like San Zhi Yang and Dongbei Yu Jie making headlines, the message is clear: market fragmentation and anti-competitive practices will no longer be tolerated. Key developments include: – Over 239 administrative monopoly cases investigated and 8,000 local standards revoked to eliminate ‘small market’ closures. – Enhanced scrutiny of platform economy algorithms, unfair competition, and monopolistic mergers. – Nationwide push for cross-regional regulatory alignment, including in the Yangtze River Delta and Greater Bay Area. – Strict actions against live-streaming e-commerce violations, emphasizing consumer protection and transparency. Building a National Unified Market: Regulatory Foundations China’s vast market size is one of its greatest economic advantages, but realizing its full potential requires dismantling local protectionism and preventing market monopolization. Luo Wen (罗文), Director of the State Administration for Market Regulation (SAMR), emphasized that over the past five years, significant mechanisms have been established to eliminate bottlenecks in resource flows and strengthen domestic circulation. Legal and Policy Framework Enhancements SAMR has been instrumental in overhauling China’s competitive legal landscape. The Anti-Monopoly Law underwent its first major revision in 15 years, while the Anti-Unfair Competition Law was revised for the third time. These changes elevated the status of competition policy to a legal principle, aligning with the needs of a modernizing economy. Additionally, the introduction of the Fair Competition Review Ordinance ensured that policies at national, provincial, municipal, and county levels undergo rigorous scrutiny to prevent administrative interventions that distort market dynamics. Supporting Regulations and Compliance Systems To bolster these laws, SAMR enacted 12 supporting regulations, including the Provisions on Prohibiting Abuse of Market Dominance. These measures created a flexible yet robust system of compliance guidelines and enforcement tools, making China’s competitive environment more predictable and transparent for businesses. Cracking Down on Monopolistic Practices SAMR has prioritized identifying and addressing monopolistic risks across key sectors, with particular focus on platform economy regulation. By setting red lines and defining boundaries, the regulator aims to prevent disorderly competition in digital markets. Public Interest and Consumer Protection In the民生领域 (livelihood领域), SAMR launched specialized anti-monopoly campaigns to tackle abuses in sectors like healthcare, water supply, and construction. These efforts have yielded tangible benefits—for instance, drug prices have returned to reasonable levels following investigations into pharmaceutical monopolies. In total, SAMR reviewed 3,400 concentration of undertakings cases and penalized 145 illegal implementations, ensuring a level playing field for all market participants. Combatting Unfair Competition and Local Protectionism The fair competition review mechanism has been pivotal in screening government policies before implementation. Of the 42,200 policies reviewed, 11,400 were amended or rejected to prevent rules that could undermine the national unified market. SAMR also targeted administrative monopolies, investigating 239 cases and abolishing over 8,000 local standards that fostered self-contained ‘small loops’ within regions. Online and Offline Market Governance Enforcement against unfair competition has been equally vigorous, with nearly 50,000 cases handled—4,296 of which involved online violations. This dual approach has helped refine competition ecosystems both offline and online, ensuring consistent standards across platforms. Regional Integration as a Catalyst for National Unity SAMR has championed regional market integration pilots, such as in the Yangtze River Delta and Greater Bay Area, to create models for nationwide implementation. Initiatives like cross-provincial e-certificate sharing and ‘one-network’ governance for 170+ high-frequency services have broken down bureaucratic barriers. In the Greater Bay Area, 244 standards were harmonized, and 155 ‘Bay Area Certification’ certificates were issued, accelerating the momentum toward a unified national market. Platform Economy Regulation: Balancing Oversight and Innovation Deng Zhihui (邓志勇), Vice Minister of SAMR and Director of the National Standardization Administration, acknowledged the dual role of regulators as both ‘supervisors’ and ‘servants’ in the platform economy. While digital innovation has spurred growth, issues like algorithmic manipulation and unfair competition require nuanced handling. Establishing Clear Rules SAMR has introduced a suite of regulations, including the Online Transactions Supervision Measures and Guidelines Against Monopoly in the Platform Economy, to provide clarity and predictability. The establishment of the National Platform Economy Governance Standardization Technical Committee further underscores the commitment to standard-led governance. Stringent Enforcement Against Violations SAMR’s专项行动 (special campaigns) have led to the removal of 4.54 million illegal product listings, the suspension of 58,000 online stores, and the investigation of 105,000 internet-related cases. High-profile actions against live-streaming e-commerce irregularities—exemplified by the San Zhi Yang and Dongbei Yu Jie cases—demonstrate the resolve to curb platform overreach. SAMR has also mandated the elimination of unreasonable restrictions like ‘refund-only’ policies and forced shipping insurance, fostering a fairer environment for consumers and sellers alike. Proactive Support and Engagement Beyond enforcement, SAMR has embraced a service-oriented approach, issuing compliance guidance for platforms and facilitating data-sharing with government agencies. Regular dialogues with stakeholders—from merchants to delivery riders—ensure that regulatory measures are pragmatic and responsive to real-world needs. The Path Forward: Deepening Market Reforms Luo Wen reaffirmed that the 15th Five-Year Plan period will see intensified efforts to break down local protectionism and market segmentation. The goal is to transform the national unified market into a stage where all businesses can compete fairly and innovate freely. SAMR will continue to refine its常态化监管 (normalized supervision) model, leveraging preemptive and penetrating oversight tools to foster sustainable growth in the platform economy. As Deng Zhihui noted, the balance between regulation and development remains paramount to ensuring long-term vitality and equity in China’s markets. China’s journey toward a unified national market is accelerating through robust legal frameworks, assertive enforcement, and regional pilots. For businesses, adaptability and compliance are no longer optional—they are essential to thriving in this transformed landscape. Stay informed on regulatory updates to navigate these changes effectively and leverage emerging opportunities in China’s dynamic economy.
China’s Market Regulator Cracks Down on Monopolies and Platform Abuse: San Zhi Yang and Dongbei Yu Jie Cases Highlighted
