Fair Competition Regulations of the Hainan Free Trade Port was promulgated on 30 Sept. 2021, and entered into force on 1 Jan. 2022.

The Regulations consists of 35 articles, aiming to promote fair competition and protect the legitimate rights and interests of both business operators and consumers.

The key points are as follows.

1.Are overseas entities subject to the Regulations?

Yes.

Hainan shall implement the negative-list system for investment and cross-border trade in services. For fields not on the negative list, domestic and overseas investors and service providers shall compete fairly (Art. 15).

2.What are the rights of the person being investigated?

The person being investigated and the interested party are entitled to the rights to be heard and and defended, but shall not obstruct the investigation of the law enforcement agency (Art. 28).

3.Can the consumers report any antitrust violation?

Yes.

Consumers can report in written form to provide relevant facts and evidence to market regulators (Art. 24) and file a lawsuit with a court (Art. 32).

The Regulations regulates international cooperation, competition policy, fair competition review, conducts affecting fair competition, investigation and supervision and other issues, promoting integrated innovation of fair competition system.

In terms of fair competition policy, the Regulations specifies that Hainan Free Trade Port will conduct management systems including the special list of relaxed market access (special measures) and the negative list of access for foreign investment. In fields not mentioned in the negative list, all types of market players can participate equally and compete fairly according to law.