This paper examines the similarities and differences between the European and Chinese merger control systems, thereby considering the decision-making practice of the responsible competition authorities in China and the EU.
Merger control is an important economic policy instrument both in China and in the EU. Traditionally, merger control essentially serves the purpose of preventing unwanted monopolies and other structural impairments of competition. In the EU, merger control is an important instrument of strengthening competition and the market economy in the inner-European market. Given that China considers itself to be a socialist country, the fact that China also has introduced a merger control system that largely meets international standards is remarkable. In a socialist country, the economic system is usually a planned economy instead of a market economy. Competition does not play a comparable role. Nevertheless, China created a merger control regime which was strongly influenced by European merger control in 2008. In many instances, even the same terminology was incorporated into the provisions. European merger control thus served as a model for the creation of Chinese merger control.
Despite these similarities, there are also significant differences between European and Chinese merger control. These special features lie, in particular, in the consideration and weighting of non-competitive factors, such as public interest or national economic development. The deviations are due to the functions and objectives of the Chinese merger control regime.
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