Prof Mark Williams Hong Kong Polytechnic University March 2010

1. Current Competition Law Development in Hong Kong and China : Cross Border Economic Integration and Competition Issue Prof Mark Williams Hong Kong Polytechnic University March 2010

2. 中国与香港竞争法最新发展：跨境经济融合及竞争事宜中国与香港竞争法最新发展：跨境经济融合及竞争事宜 麦伟年教授 香港理工大学（会计及金融学院副系主任及法律教授 ） 2010年3月

3. Historical Examples of Economic Integration • Creating an external customs union • USA (18th century), • Germany (19th century), • Australia (early 20 century), • EU (late20th century) • ASEAN free-trade zone 2015?

4. 历史上经济一体化的例子 • 建立一个永久的关税同盟 • 美国（18世纪） • 德国（19世纪） • 澳大利亚（20世纪早期） • 欧盟（20世纪晚期） • 东盟自由贸易区 2015？

5. The Legal Dimension • Federal ( USA, Germany, Australia) or transnational binding legal rules, including free movement of : • Goods – no internal tariffs or administrative restrictions or discriminatory rules • Services – ability to provide services to anyone in any part of the territory • People – internal mobility of labour and no discriminatory employment rules • Capital – right to establish and operate a business anywhere in the territory without restriction

6. 在法律层面 • 联邦（美国，德国，澳大利亚）或者跨国的有约束力的法律规则，包括能够自由流动的： • a) 商品—无内部关税，行政限制和歧视性条款 • b) 服务—能够向该领域内的任何人提供服务 • c) 劳动力—劳动力能够内部流动和无歧视性就业条款 • d) 资本—在该领域内的任何地方都拥有设立和运营公司的权利

7. The Political Dimension • Federal, political and legal institutions to create and enforce free-movement rules • USA the federal/state dual legislative and court system • Germany single court system but with a federal/state legislative system • Australia similar to the US • the EU has a complex dual legislative system at EU and member state level, the national courts can apply EU law but seek authoritative interpretation from the ECJ on EU law, or, parties can make a final appeal to the ECJ

8. 在政治层面 • 创制和执行自由流动的规则的联邦、政党和法律机构 • a) 美国联邦与各州的双立法和司法系统 • b) 德国的单法院系统和联邦与各州的双立法系统 • c)澳大利亚的情况与美国相似 • d) 欧盟：在欧盟和成员国之间是复杂的双系统——各国的法院可以执行欧盟的法律，但是有欧洲法院对欧盟法院作出权威的解释，或者各政党可以像欧洲法院提起终审的上诉

9. Ultimate objective Creation of an internal market free from any legal or administrative restrictions in order to allow territory-wide growth, economies of scale and the creation of industrial clusters dictated by market forces, not administrative order, so improving economic efficiency and ‘consumer welfare’.

10. 最终目标 • 建立一个不受任何法律和行政限制的自由内部市场，从而使领域内的经济增长、经济规模和产业集群的创造都有市场力量而不是行政命令来决定。由此可以推进经济的效率和“消费者的福利”。

11. Role of Competition Law • Antitrust/antimonopoly/competition law is necessary to : a) ensure that the national or regional markets remain open and ‘contestable’ by new entrants b) abuse of market power (monopolization), unreasonable restrictions on trade between private producers (restrictive/monopoly agreements) and overly concentrative mergers do not impede or prevent market competition. • NOTE : Special rules on state aid/subsidies in the EU

12. 竞争法的角色定位 • 竞争法/反垄断法必须做到： • a) 确保该国家或地区的市场保持开放并且对新进入者是“可竞争的” • b) 确保市场支配地位的滥用，私人经营者之间的垄断协议，和经营者的过度集中不妨碍或阻止市场的竞争 • NOTE：欧盟的国家援助/补贴项目适用特别规定

13. China and Hong Kong • On-going de facto economic integration since 1978 • Separate customs territories and separate memberships of the WTO • Regional trade agreements Closer Economic Partnership Agreements (CEPA) • Unitary state but Hong Kong is a Special Administrative Region • National laws, but most do not apply to Hong Kong • Separate legislative assemblies and legal systems, though NPC can make law for Hong Kong and overrule Hong Kong Court of Final Appeal

14. 中国大陆和香港 • 从1978年开始进行事实上的经济融合 • 分属于不同的关税区，并且在WTO拥有各自的席位 • 签订了地区内的更紧密经贸关系协定(CEPA) • 是一个统一的国家，但是香港是特别行政区 • 实行国家统一的法律，但是绝大多数不适用于香港 • 尽管全国人民代表大会可以为香港立法和推翻香港法院的终审裁决，但是二者是独立的立法机关和司法系统。

15. Assessment of Current Trade Liberalization Measures • Substantial de facto progress as regards investment, corporate listings on HKEX, joint infrastructure, free movement of persons • CEPA and Supplements still exhibit many administrative impediments • No judicial body to rule on disputes between the parties (governments) on the meaning or implementation of the agreements • Lack of private enforceability • Some mutual recognition of qualifications but no mutual recognition of product standard laws, for example. • CEPA is more like a state to state free trade agreement in limited spheres of economic activity • No rules of ‘state aid’ and industrial subsidy

16. 对目前贸易自由化的措施的评论 • 在投资，香港交易所的公司上市，联合基础设施和劳动力的自由流动方面的稳定的合作中 • 更紧密经贸关系安排和补给中依然显现出很多的行政障碍 • 没有司法机构来解决政党（政府）之间的关于协议的含义或履行的争议 • 缺少私人的强制力 • 在一些资格认证上有相互承认制度，但是在例如产品标准法律等领域则没有这一制度 • 更紧密经贸关系安排更像是一个仅限于经济活动领域内的双方自由贸易协议 • 在地区政府援助和工业补贴方面没有规定

17. Competition Law • China has the AML but does it apply to Hong Kong? See Art. 2 AML: “…within the territory of the People’s Republic of China”. • Hong Kong does not yet have a competition law but jurisdiction was not mentioned in the government consultation paper • AML nor HK proposals do not mention cross border competition issues despite the political support for ever greater economic integration

18. 竞争法 • 中国的《反垄断法》是否适用于香港？ 《反垄断法》第二条规定：“适用于中华人民共和国” • 香港目前还没有竞争法，但是香港管辖权的问题政府的咨询文件里面并没有提及 • 尽管政府为更深入的经济融合提供了很大的支持，但无论是《反垄断法》还是香港的提案都没有提及跨境竞争的问题

19. Institutions and Process • AML enforcement bodies have not undertaken any publicized contact with Hong Kong authorities • How will contradictory legal provisions in the AML and the new HK law be applied? • Which institutions will have authority to undertake joint investigations and resolve disputes? • What will be the mechanisms for co-operation? • Why is this important? Legal uncertainty will affect investor confidence and possibly call into question the ‘one country, two systems’ settlement.

20. 机构和进程（流程） • 反垄断法的执行机构没有和香港的有关机关做过任何公开的接触 • 如何处理反垄断法的法律条文和香港新制定的相关法律之间的矛盾？ • 哪个机关有权开展联合调查和解决争端？ • 合作的机制是什么？ • 为什么这个问题如此重要？ 法律的不确定将会影响到投资者的信心，并且可能对“一国两制”政策抱有疑问