Decree of the State Council of the People's Republic of China
No.529

  Provisions of the State Council on Thresholds for Prior Notification of Concentrations of Undertakings adopted at the 20th Executive Meeting of the State Council on August 1, 2008 are hereby promulgated and shall be effective as of the date of promulgation.
                                                                                                Premier, Wen Jiabao                                                                                                      August 3, 2008
 


Provisions of the State Council on Thresholds for Prior Notification of Concentrations of Undertakings

Article 1 These Provisions are formulated in accordance with the Anti-monopoly Law of the People's Republic of China for the purpose of defining the thresholds for prior notification of concentrations of undertakings.

Article 2 A concentration of undertakings means any of the following:
(1) merger of undertakings;
(2) acquisition of control over other undertaking(s) by an undertaking by acquiring equities or assets; or
(3) acquisition of control over, or the possibility of exercising decisive influence on, other undertaking(s) by an undertaking by contract or by any other means.

Article 3 Where a concentration of undertakings reaches any of the following thresholds, the undertaking(s) concerned shall file a prior notification with the competent commerce department of the State Council, and no such concentration may be implemented without the clearance of prior notification:
(1) the combined worldwide turnover of all the undertakings concerned in the preceding financial year is more than RMB 10 billion yuan, and the nationwide turnover within China of each of at least two of the undertakings concerned in the preceding financial year is more than RMB 400 million yuan; or
(2) the combined nationwide turnover within China of all the undertakings concerned in the preceding financial year is more than RMB 2 billion yuan, and the nationwide turnover within China of each of at least two of the undertakings concerned in the preceding financial year is more than RMB 400 million yuan.
In the calculation of turnover, the unique circumstances of such special industries or sectors as banking, insurance, securities and futures shall be taken into account, and the specific measures therefor shall be formulated by the competent commerce department of the State Council in conjunction with other relevant departments of the State Council.

Article 4 Where a concentration of undertakings does not reach any of the thresholds specified in Article 3 of these Provisions, but facts and evidence collected in accordance with the prescribed procedures establish that such concentration effects, or is likely to effect, the elimination or restriction of competition, the competent commerce department of the State Council shall initiate an investigation in accordance with law.

Article 5 These Provisions shall be effective as of the date of promulgation.