Economy

2144 Words Nov 16th, 2012 9 Pages
Introduction
The legislation process of Anti-Monopoly Law has been indeed a long journey. The new AML is a tremendous leap forward for China, bringing China into the modern world of antitrust and competition law. The law, which aims to prevent dominance of any one company, was first proposed in 1994. But its pace was slow until 6 years later because of pressure from big state-owned companies and multinationals that had just started doing business in China. It wasn't until 2001, when China joined the World Trade Organization, did the process accelerate. In August 2007, the law was finally passed by the National People's Congress. Although the measure compromised with state-owned enterprises, which dominate industry, people tend to believe
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In addition, market dominance will be presumed to exist in the following cases (although this presumption can be rebutted by evidence to the contrary): * if the operator has a market share of at least 50 per cent; * if the joint market share of two operators accounts for at least two-thirds of the relevant market; or * if the joint market share of three operators accounts for at least three-quarters of the relevant market. * The monopolistic practice * The definition monopolistic competition is firms which in effect hold a monopoly over their products, in that the firm is able to influence the market price of its product by altering the rate of production. Monopolistic competitive firms produce products that are not perfect substitutes or are at least perceived to be different to all other brands products. Unlike in perfect competition, the monopolistic competitive firm does not produce at the lowest possible average total cost. Instead, the firm produces at an inefficient output level, reaping more in additional revenue than it incurs in additional cost versus the efficient output level.
There are several kinds of monopolistic practice as follow * Dumping can refer to any kind of predatory pricing. However, the word is now generally used only in the context of international trade law, where dumping is defined as the act of a manufacturer in one country exporting a product to another country at a

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