China’s SAMR Issues Amendments to the Fair Competition Review Regulation Implementing Measures
Published 9 November 2026
Yu Du
On 6 November 2026, the State Administration for Market Regulation (SAMR [ https://www.samr.gov.cn/ ]) published its Decision on Amending the Implementing Measures for the Fair Competition Review Regulation (Amendments [ https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/fgs/art/2026/art_cca9cd5968f0479ab82e7980fbe51571.html ]) under SAMR Order No. 130. The Amendments will take effect on 1 December 2026.
Legislative Background
China’s fair competition review system was established in 2016 to prevent government policies from excluding or restricting market competition. The system was subsequently incorporated into the Anti-Monopoly Law [ https://sjfg.samr.gov.cn/law/pageInfo/law_search_new.law_details?lawId=02e6c96b7a4af88a1737de674fe87eeb&label=1 ]following its amendment in 2022.
On 6 June 2024, the State Council promulgated the Fair Competition Review Regulation (Regulation [ https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/bgt/art/2024/art_6baa468794ee4fa09973ac4787706381.html ]), which took effect on 1 August 2024. To facilitate its implementation, SAMR issued the Implementing Measures for the Fair Competition Review Regulation (Implementing Measures [ https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/fgs/art/2025/art_2084c3ba225943c2a670d27e85fb00be.html ]) on 28 February 2025, effective from 20 April 2025.
The Implementing Measures provide detailed rules governing review standards, procedures, responsibilities and supervisory mechanisms. Their central objective is to prevent administrative authorities from introducing policies that distort competition, thereby promoting a unified national market and a fair business environment.
Key Changes Introduced by the Amendments
The Amendments introduce substantive improvements to the existing framework alongside certain technical and editorial adjustments. The principal changes focus on preventing local protectionism, strengthening review procedures and clarifying institutional responsibilities.
1. Stronger Restrictions on Local Protectionism
The revised Article 15 further clarifies prohibited practices in government procurement and public tendering. In particular, local performance records, business establishment history, awards, local branches and tax or social security contributions must not be used in credit assessments in ways that disadvantage non-local businesses.
The Amendments also address discriminatory credit scoring based on product origin and unreasonable procedural requirements, including excessively short response periods and restrictions permitting only on-site registration or document purchases.
These provisions target less explicit forms of discrimination that may place non-local businesses at a competitive disadvantage without formally excluding them from procurement or tendering procedures. For example, a local government procurement policy that assigns higher credit scores to companies maintaining local branches may raise fair competition concerns even if businesses from other regions are technically permitted to participate.
By refining the relevant review criteria, the Amendments seek to ensure that participation in public procurement and tendering is determined by legitimate commercial qualifications rather than geographical preferences.
2. Enhanced Review Procedures and Accountability
The Amendments strengthen the responsibilities of both policy-drafting authorities and market regulation departments throughout the review process.
Under the revised Article 33, where a proposed policy fails to satisfy fair competition review standards, the drafting authority must revise it in accordance with the review opinions and resubmit it for examination. A review conclusion confirming compliance must also accompany a policy submitted to the relevant government for consideration or approval.
The revised Article 31 further authorises market regulation departments to remind and urge drafting authorities to fulfil their review obligations where repeated deficiencies occur, including inadequate application of review standards, failure to consult relevant parties or submission of incomplete review materials.
In addition, Article 35 requires authorities using third-party assessments to explain the assessment results and how they have been considered in their review conclusions or preliminary opinions.
Collectively, these changes reinforce procedural discipline and accountability. They also make clear that fair competition review should be a substantive assessment integrated into policy development, rather than a procedural formality completed immediately before approval.
3. Clarification of Responsibilities for Entrusted Activities
A new Article 48 clarifies that where a drafting authority entrusts another party to implement government procurement, public tendering or investment promotion activities, the drafting authority remains responsible for conducting the relevant fair competition review.
This provision is particularly relevant where local authorities rely on affiliated entities or external organisations to organise procurement or investment promotion projects. It helps prevent review obligations from being circumvented through delegation or outsourcing arrangements.
Other amendments align certain provisions with higher-level legislation, refine terminology and strengthen institutional capacity. These changes are primarily technical or supporting adjustments rather than fundamental changes to the existing regulatory framework.
Core Principles and Practical Application
Under the existing framework, administrative authorities and organisations authorised to administer public affairs must conduct fair competition reviews when drafting policies affecting business activities.
The review standards cover four principal categories of potential competition restrictions: market entry and exit, the free movement of goods and production factors, business operating costs and business conduct.
The scope extends beyond formal regulations to include specific policy measures such as investment promotion arrangements, technical specifications and administrative agreements. Consequently, a local government policy offering selective subsidies or imposing location-based eligibility requirements may be subject to review even if it is not issued as a formal regulation.
Policies that violate the applicable standards generally cannot be introduced unless they qualify for a statutory exception, subject to additional requirements including the absence of a less restrictive alternative and appropriate implementation limits.
The practical importance of these requirements is illustrated by SAMR’s publication of ten representative fair competition review cases [ https://www.samr.gov.cn/hd/zxft/art/2026/art_ec4dad464dc3405f8fc2874321736f6b.html ] on 7 August 2026.
These examples demonstrate an increasing emphasis on preventive compliance and the integration of competition review into administrative decision-making. Although these initiatives preceded the Amendments, they illustrate the practical direction of the regulatory framework.
Comment
The Amendments represent a further step towards strengthening the practical enforceability of China’s fair competition review system. Rather than fundamentally changing its underlying principles, they focus on closing procedural gaps, clarifying institutional responsibilities and addressing less visible forms of local protectionism. For businesses operating across different regions of China, particularly those participating in government procurement, public tendering or investment projects, the revised rules may provide a stronger basis for challenging discriminatory policy requirements. Ultimately, the effectiveness of the revised framework will depend on consistent implementation and supervision.
Legislative Background
China’s fair competition review system was established in 2016 to prevent government policies from excluding or restricting market competition. The system was subsequently incorporated into the Anti-Monopoly Law [ https://sjfg.samr.gov.cn/law/pageInfo/law_search_new.law_details?lawId=02e6c96b7a4af88a1737de674fe87eeb&label=1 ]following its amendment in 2022.
On 6 June 2024, the State Council promulgated the Fair Competition Review Regulation (Regulation [ https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/bgt/art/2024/art_6baa468794ee4fa09973ac4787706381.html ]), which took effect on 1 August 2024. To facilitate its implementation, SAMR issued the Implementing Measures for the Fair Competition Review Regulation (Implementing Measures [ https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/fgs/art/2025/art_2084c3ba225943c2a670d27e85fb00be.html ]) on 28 February 2025, effective from 20 April 2025.
The Implementing Measures provide detailed rules governing review standards, procedures, responsibilities and supervisory mechanisms. Their central objective is to prevent administrative authorities from introducing policies that distort competition, thereby promoting a unified national market and a fair business environment.
Key Changes Introduced by the Amendments
The Amendments introduce substantive improvements to the existing framework alongside certain technical and editorial adjustments. The principal changes focus on preventing local protectionism, strengthening review procedures and clarifying institutional responsibilities.
1. Stronger Restrictions on Local Protectionism
The revised Article 15 further clarifies prohibited practices in government procurement and public tendering. In particular, local performance records, business establishment history, awards, local branches and tax or social security contributions must not be used in credit assessments in ways that disadvantage non-local businesses.
The Amendments also address discriminatory credit scoring based on product origin and unreasonable procedural requirements, including excessively short response periods and restrictions permitting only on-site registration or document purchases.
These provisions target less explicit forms of discrimination that may place non-local businesses at a competitive disadvantage without formally excluding them from procurement or tendering procedures. For example, a local government procurement policy that assigns higher credit scores to companies maintaining local branches may raise fair competition concerns even if businesses from other regions are technically permitted to participate.
By refining the relevant review criteria, the Amendments seek to ensure that participation in public procurement and tendering is determined by legitimate commercial qualifications rather than geographical preferences.
2. Enhanced Review Procedures and Accountability
The Amendments strengthen the responsibilities of both policy-drafting authorities and market regulation departments throughout the review process.
Under the revised Article 33, where a proposed policy fails to satisfy fair competition review standards, the drafting authority must revise it in accordance with the review opinions and resubmit it for examination. A review conclusion confirming compliance must also accompany a policy submitted to the relevant government for consideration or approval.
The revised Article 31 further authorises market regulation departments to remind and urge drafting authorities to fulfil their review obligations where repeated deficiencies occur, including inadequate application of review standards, failure to consult relevant parties or submission of incomplete review materials.
In addition, Article 35 requires authorities using third-party assessments to explain the assessment results and how they have been considered in their review conclusions or preliminary opinions.
Collectively, these changes reinforce procedural discipline and accountability. They also make clear that fair competition review should be a substantive assessment integrated into policy development, rather than a procedural formality completed immediately before approval.
3. Clarification of Responsibilities for Entrusted Activities
A new Article 48 clarifies that where a drafting authority entrusts another party to implement government procurement, public tendering or investment promotion activities, the drafting authority remains responsible for conducting the relevant fair competition review.
This provision is particularly relevant where local authorities rely on affiliated entities or external organisations to organise procurement or investment promotion projects. It helps prevent review obligations from being circumvented through delegation or outsourcing arrangements.
Other amendments align certain provisions with higher-level legislation, refine terminology and strengthen institutional capacity. These changes are primarily technical or supporting adjustments rather than fundamental changes to the existing regulatory framework.
Core Principles and Practical Application
Under the existing framework, administrative authorities and organisations authorised to administer public affairs must conduct fair competition reviews when drafting policies affecting business activities.
The review standards cover four principal categories of potential competition restrictions: market entry and exit, the free movement of goods and production factors, business operating costs and business conduct.
The scope extends beyond formal regulations to include specific policy measures such as investment promotion arrangements, technical specifications and administrative agreements. Consequently, a local government policy offering selective subsidies or imposing location-based eligibility requirements may be subject to review even if it is not issued as a formal regulation.
Policies that violate the applicable standards generally cannot be introduced unless they qualify for a statutory exception, subject to additional requirements including the absence of a less restrictive alternative and appropriate implementation limits.
The practical importance of these requirements is illustrated by SAMR’s publication of ten representative fair competition review cases [ https://www.samr.gov.cn/hd/zxft/art/2026/art_ec4dad464dc3405f8fc2874321736f6b.html ] on 7 August 2026.
These examples demonstrate an increasing emphasis on preventive compliance and the integration of competition review into administrative decision-making. Although these initiatives preceded the Amendments, they illustrate the practical direction of the regulatory framework.
Comment
The Amendments represent a further step towards strengthening the practical enforceability of China’s fair competition review system. Rather than fundamentally changing its underlying principles, they focus on closing procedural gaps, clarifying institutional responsibilities and addressing less visible forms of local protectionism. For businesses operating across different regions of China, particularly those participating in government procurement, public tendering or investment projects, the revised rules may provide a stronger basis for challenging discriminatory policy requirements. Ultimately, the effectiveness of the revised framework will depend on consistent implementation and supervision.