Chinese lawmakers have enacted a revised version of the anti-unfair competition law, aiming to foster fair market practices and protect smaller enterprises. This legislative move is a fundamental component of China's broader strategy to cultivate a fair and orderly market ecosystem.

The updated law was approved during a session of the Standing Committee of the National People's Congress, the country's highest legislative body, and it will come into force on October 15. The revised law comprises five key chapters encompassing general provisions, identification of unfair competition practices, investigation protocols for suspected violations, legal responsibilities, and supplementary provisions.

The legislation is designed to enhance the regulatory framework for combating unfair competition, bolster law enforcement capabilities, and foster a cohesive, transparent, competitive market system. These efforts are aimed at ensuring a balanced competitive landscape.

A significant stipulation within the law mandates that platform operators explicitly state fair competition rules in their service agreements and trading policies. They are also required to set up mechanisms for reporting, managing, and resolving disputes related to unfair competition.

Furthermore, operators must take prompt and lawful actions when they detect unfair practices and are responsible for maintaining records and informing local supervisory authorities, thus enhancing accountability within the market.

Shi Hong, an official from the legislative committee of the NPC, highlighted that the recent law revision aligns with China's ongoing reform efforts. He underscored the pivotal role this legislation will play in advancing high-quality economic and social growth.

Shi pointed out the challenges posed by the rapid evolution of new technologies and business models in recent years, which have led to fierce competition, data rights infringements, and harmful transactions in the marketplace.

The law aims to address these urgent concerns by improving the legal framework governing the socialist market economy, ensuring that the structures in place are responsive to contemporary challenges.

In an effort to curb data-related misconduct, the revised law delineates specific malicious transaction practices, including manipulation of platform rules, fraudulent transactions, deceptive reviews, and illegitimate returns that harm market order and other competitors.

Moreover, the updated legislation confronts the issue of dominance abuse by large corporations, prohibiting these entities from exploiting their financial, technological, or market advantages to impose unreasonable terms on smaller competitors.

The law also prohibits unfair payment practices such as imposing long payment periods or conditions and delaying payments for goods and services, which have posed additional burdens on small and medium-sized enterprises.

Cao Yin contributed to this story.