Starting August 1st, the Zhejiang Provincial Market Regulation Bureau will be authorized by the State Administration for Market Regulation to handle the review of simplified cases for business concentrations in Zhejiang, Fujian, and Jiangxi provinces.
This means that for enterprises in these three provinces involved in investment and mergers requiring a business concentration declaration, if a simplified procedure applies, they can now process it locally in Zhejiang instead of traveling to Beijing.
Business concentration review, commonly known as corporate merger review, is a preemptive antitrust measure. Under China's Anti-Monopoly Law, mergers, acquisitions of equity, or the establishment of joint ventures that meet declaration thresholds must be reported to the State Administration for Market Regulation for approval before implementation. This global practice aims to prevent monopolistic behavior that could eliminate or restrict competition before it occurs.
According to the bureau's announcement, simplified cases eligible for review include four scenarios: first, when the combined market share of all participating operators in the same relevant market is less than 15%, or in the upstream and downstream markets, each operator's share is less than 25%, and when operators are neither in the same market nor in upstream/downstream relationships, each operator's share in every relevant market is less than 25%. Second, when operators establish a joint venture outside China, and the joint venture does not conduct business within China. Third, when operators acquire equity or assets of an overseas enterprise that does not operate in China. Fourth, when a joint venture controlled by two or more operators is brought under the control of one or more of them through the concentration.
Statistics show that simplified cases account for about 90% of all business concentration cases, covering the vast majority of corporate mergers. The Zhejiang bureau has committed to a "fast-track for simple cases" principle, launching a series of convenience measures. It has published a consultation hotline at 0571-89761140 and implemented a pre-declaration negotiation mechanism. Additionally, it has integrated into the national antitrust business system, enabling full online processing for business concentration declarations, allowing data to replace the need for physical travel.
To ensure efficient and standardized reviews, the bureau has established a professional review team. It will adhere to an internal "double twenty" requirement, meaning the time from enterprise declaration to formal acceptance, and from formal acceptance to case conclusion, should each not exceed 20 days. This will provide high-quality services for investment and merger activities.
Zhejiang's merger market is active, with the manufacturing sector accounting for over 40% of transactions. Since the start of the "14th Five-Year Plan," Zhejiang has handled 360 antitrust review cases for business concentrations, ranking among the highest nationally, with a cumulative transaction value exceeding 450 billion yuan. Manufacturing is the most active sector for investment and mergers, with 147 cases, or 40.8% of the total.
Looking ahead, the Zhejiang Provincial Market Regulation Bureau will strictly follow the requirements of the State Administration for Market Regulation, fulfill its review duties, and continuously improve service efficiency. It aims to create a transparent and predictable investment and merger environment for enterprises, contributing to the construction of a unified national market.
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