Summary of Key Points
Two years have passed since the implementation of the "Fair Competition Review Regulations." By examining government policies at their inception (to prevent the introduction of measures such as local protectionism and market segmentation, which create "invisible barriers"), significant results have been achieved. Not only have numerous unfair policies been prevented from being enacted, but existing problematic documents have also been eliminated. The system has evolved from a policy-level initiative to a regulatory one, thus gaining greater legal authority. In the second half of this year, further efforts will be made to strengthen the enforcement of fair competition principles, including revising detailed regulations, conducting more inspections, and enhancing the capabilities of local authorities, with the aim of fostering a unified national market.
Detailed Explanation
1. What does this regulation actually cover? —— Preventing the introduction of unfair policies from the start
In simple terms, whenever government departments wish to introduce any policy—whether it relates to subsidies, bidding rules for projects, or industry entry requirements—they must first undergo a review to ensure that the policy does not favor certain groups (for example, only allowing local companies to participate in projects, providing exclusive subsidies to local businesses, or preventing foreign products from entering the market). If such bias is detected, the policy must be revised or rejected.
Why is it necessary to address these issues at the source? Previously, some regions would secretly establish "invisible barriers" (such as requiring transactions with local suppliers or restricting bids from out-of-town companies), effectively denying fair competition to foreign and smaller businesses. Now, these barriers are identified and eliminated during the policy-making process.
2. What achievements have been made in the past two years? —— Data shows how many "invisible barriers" have been removed
The figures provided in the report are quite telling:
- In the first half of 2026, over 30,000 government policies were reviewed nationwide, and more than 6,600 of them were required to be revised or adjusted (meaning approximately one in every five policies had issues);
- Additionally, 23,400 existing problematic documents were eliminated—for instance, some regulations previously required that only local supermarkets could sell local alcohol. These changes indicate that many forms of unfairness that were hidden within policies have been identified and addressed, improving the competitive environment for businesses.
3. Why does this regulation have greater authority? —— It has been elevated from a policy to a regulatory framework with legal consequences
Until August 2024, fair competition reviews were merely policy recommendations with limited enforcement power. However, on August 1, 2024, they became "administrative regulations" issued by the State Council, carrying the same legal weight as laws. This means that government departments that fail to comply with the regulations can face legal consequences—policy makers may be held accountable, and problematic policies must be revoked. This gives the system the necessary teeth to deter local governments from engaging in protectionist practices.
4. What additional measures will be taken in the second half of the year? —— Three key strategies to consolidate the progress
Deputy Director Zhao Chunlei outlined three main areas for improvement:
- Stricter regulations: The "Implementation Measures" will be revised to clarify review criteria (what constitutes local protectionism), procedures, and oversight mechanisms, leaving no room for misconduct by local authorities;
- More stringent inspections: Annual inspections will be conducted in sectors closely related to consumers and businesses (such as healthcare, education, and consumer goods), with any issues being promptly addressed;
- Capacity enhancement: Training programs for frontline staff will be provided (online courses, on-site training, case studies) to ensure they have the skills to conduct effective reviews. Since many unfair policies originate at the local level, improving their capabilities is crucial for addressing these issues at the source.
5. What benefits does this bring to us? —— Fair competition for businesses and better outcomes for consumers
For businesses, whether they are local startups or large companies from other regions, there will be no longer a need to rely on connections or local favoritism to compete successfully; quality products and services will be the key to success.
For consumers, increased competition will lead to lower prices and improved product quality. For example, high-quality fruits from other regions can enter the local market, forcing local stores to offer competitive prices, and better hospitals may open branches locally, making healthcare more accessible. Ultimately, it is the average consumer who benefits from these changes.
In summary, the "Fair Competition Review Regulations" act as a tool for clearing obstacles in the market, removing hidden barriers that undermine fair competition. This is a crucial step toward building a unified national market where businesses can thrive based on their merits alone.