On August 4, 2008, the State Council issued the first set of implementing regulations for China’s Anti-Monopoly Law. The Rules on the Notification of Concentration of Business Operators, which took effect August 1, require transactions triggering the following thresholds to be notified with the Ministry of Commerce (MOFCOM):
- the global turnover of all parties to the transaction exceeds RMB 10 billion (USD 1.45 billion), and turnover within China of at least two of those parties each exceeds RMB 400 million (USD 58.3 million) over the preceding accounting year; and
- the turnover within China of all parties to the transaction exceeds RMB 2 billion (USD 291.6 million), and turnover in China of each of at least two of those parties each exceeds RMB 400 million over the preceding accounting year.
The notification rules provide little additional detail, leaving the specifics (e.g. calculation of turnover, treatment of joint ventures) to future implementing regulations or actual practice. Other sets of implementing measures are being drafted and are expected to come out by the end of 2008 at the earliest.