China Revises Overseas Antitrust Compliance Guidelines to Help Companies Manage Legal Risks

Dragon Media News Desk

China has begun revising its overseas antitrust compliance guidelines to help Chinese companies manage legal risks associated with international investment, trade and business operations. The State Administration for Market Regulation (SAMR) released a revised draft on Tuesday and invited public comments until September 29.

The proposed revision updates guidelines issued in 2021. It incorporates changes introduced by major economies over the past five years in competition law, digital market regulation and cross-border mergers and acquisitions. According to the regulator, the legal obligations facing Chinese companies have become increasingly complex as their international operations expand.

The revised draft places particular emphasis on risks involving monopoly agreements, abuse of market dominance and mergers and acquisitions in the digital economy. It also provides updated information on merger notification thresholds in major markets, including the European Union, the United States and Germany.

Chinese companies are advised to pay attention not only to competition laws but also to foreign investment security reviews and foreign subsidy regulations when investing abroad. Rather than referring generally to overseas jurisdictions, the revised guidelines seek to provide more specific information about relevant markets, regulatory requirements and potential legal risks.

SAMR noted that China’s international trade and overseas business activities continue to expand, while some major industries and companies have encountered antitrust investigations and litigation in foreign markets. The regulator expects the updated guidelines to help enterprises identify potential compliance risks before making investment or acquisition decisions.

Hu Qimu, a professor at the Maritime Silk Road Institute of Huaqiao University, said the proposed revisions are more closely aligned with practical business conditions. He identified the European Union and the United States as important trading markets where Chinese companies also face significant antitrust compliance risks. Clearer guidance on these jurisdictions could help enterprises prepare in advance and reduce potential losses, he said.

Jian Junbo, deputy director of the Center for China-Europe Relations at Fudan University’s Institute of International Studies, noted that competition law enforcement and merger reviews in Europe have become increasingly stringent. He emphasized that Chinese companies planning investments or acquisitions in European markets should carefully examine the applicable legal requirements before proceeding.

Li Yong, a senior research fellow at the China Association of International Trade, described the revision as part of a broader policy approach that places greater emphasis on high-quality international expansion supported by legal compliance. He added that further supporting measures would be needed to help companies develop effective compliance capabilities in practice.

The draft also proposes dedicated provisions on legal remedies, rights protection and compliance advisory services. It introduces a risk identification checklist, guidance on establishing compliance management systems and procedures for responding to antitrust litigation.

Following the public consultation process, the guidelines are expected to provide Chinese enterprises with more detailed guidance on understanding foreign regulatory requirements, preventing legal disputes and conducting international business in compliance with applicable laws.