Published · Grenada

China-EU Antitrust Dialogue: What Foreign Founders Need to Know

China's market regulator met with the EU competition chief to discuss antitrust cooperation and fair competition. Here's what foreign founders operating in China should understand about the regulatory environment.

China and EU Strengthen Antitrust Cooperation

On October 21, 2026, Liu Guiping, Director of China's State Administration for Market Regulation (SAMR), met with Anthony Whelan, Director-General of the European Commission's Directorate-General for Competition, in Beijing. The two sides exchanged views on the latest developments in their respective antitrust legislation and enforcement, as well as on China-EU antitrust cooperation. They expressed their intention to deepen cooperation on competition policy and antitrust enforcement and to jointly maintain a fair competitive order in international markets.

For foreign founders registering or operating a company in China, this high-level dialogue signals that competition policy remains a key area of regulatory focus and international coordination. Understanding the direction of antitrust enforcement can help you anticipate compliance requirements and avoid potential pitfalls.

Key Takeaways from the Meeting

The meeting covered several important points relevant to businesses:

• Exchange on legislative and enforcement progress: Both sides shared updates on their latest antitrust laws and enforcement practices. This suggests that China's antitrust regime continues to evolve, and foreign companies should stay informed about new rules and their application.
• Commitment to deepen cooperation: The officials agreed to enhance collaboration on competition policy and antitrust enforcement. This could lead to more coordinated investigations and information sharing between China and the EU, affecting multinational companies that operate in both jurisdictions.
• Fair competition in international markets: The dialogue emphasized maintaining a fair competitive order globally. For foreign founders, this reinforces the importance of adhering to fair competition principles in China and abroad.

2026 China-EU Competition Policy Dialogue

On the same day, Shu Wei, Vice Minister of SAMR, held the 2026 China-EU Competition Policy Dialogue and a dialogue on fair competition review and state aid control systems with Anthony Whelan. These dialogues are part of ongoing bilateral exchanges aimed at aligning approaches to competition policy and ensuring transparency.

The fair competition review system is a mechanism China uses to ensure that government regulations do not distort market competition. For foreign founders, this means that when establishing a business in China, you can expect a regulatory environment that aims to treat all market players fairly, including foreign-invested enterprises. Understanding these systems can help you navigate local regulations and advocate for fair treatment.

Why This Matters for Foreign Founders

Antitrust and competition policy may seem distant from the day-to-day concerns of registering a company, but they are increasingly relevant for several reasons:

• Merger control: If your business plan involves acquisitions or joint ventures in China, you may need to notify SAMR under China's merger control rules. The dialogue underscores that China's merger control regime is active and subject to international cooperation.
• Anti-monopoly compliance: Even smaller companies can run afoul of antitrust rules if they engage in practices like price-fixing or abuse of market dominance. The meeting highlights that enforcement is a priority.
• Fair competition advocacy: The discussions on fair competition review and state aid control indicate that China is working to create a level playing field. Foreign founders can leverage these principles when interacting with local authorities.

Practical Steps for Compliance

To stay on the right side of China's competition rules, consider the following practical steps:

• Stay informed: Follow updates from SAMR and other regulatory bodies. The agency regularly publishes guidelines and enforcement decisions.
• Conduct a risk assessment: Before entering into agreements with competitors or suppliers, assess whether they could raise antitrust concerns.
• Seek local counsel: Engage legal advisors familiar with Chinese antitrust law to review your business practices and contracts.
• Monitor merger thresholds: If you plan to acquire a Chinese company or merge with another business, check whether the transaction meets the notification thresholds.

Conclusion

The meeting between SAMR and the European Commission's competition authority reflects the growing importance of international cooperation in antitrust enforcement. For foreign founders, this means that competition compliance is not just a domestic issue but a global one. By understanding the regulatory landscape and taking proactive steps, you can mitigate risks and focus on growing your business in China.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with company registration and ongoing compliance in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.