The Implementation of China's Anti-Monopoly Law: A Case Study on Coca Cola’s Abortive Acquisition of Huiyuan Juice

"The Implementation of China's Anti-Monopoly Law: A Case Study on Coca Cola’s Abortive Acquisition of Huiyuan Juice”

中国反垄断法的实施：以流产的可口可乐并购汇源果汁案例为考察视角

Keywords : anti-monopoly law, abortive acquisition

Speaker : Professor Jin Sun
孙晋 教授
Law School, Wuhan University
Center for the Study of Law and Society, University of California, Berkeley

Thursday, April 30, 7:00-9:00pm
Room 229, 485 LASUEN MALL, Stanford, CA 94305
Location Map: http://campus-map.stanford.edu/index.cfm?ID=03-300

Working language: Chinese

Photos courtesy of P H Yang Photography 攝影: 楊必興 (http://phyang.org)

Outline of the Talk

China’s Anti-Monopoly Law, the foundation stone of the market economy, started to be implemented since August 1st 2008. After half a year of investigation, Coca Cola’s acquisition of Huiyuan Juice was put to a stop by Ministry of Commerce on March 18th 2009. It became the first abortive case since the implementation of the Anti-Monopoly Law and caused strong repercussions home and abroad. While the nationalists applauded for the decision, overseas media generally took a skeptical attitude, considering it as a case of trade protectionism. This phenomenon requires a rational interpretation and guidance for the domestic and international media. On the one hand, acquisition by foreign capital may bring advanced technology and management experience and promote economic development; on the other hand, it may lead to the monopoly of relevant market, hamper competition and cause some domestic brands to disappear. I maintain we should look at Coca Cola’s acquisition of Huiyuan Juice from two aspects. There are both advantages and disadvantages in acquisition. Anti-monopoly law enforcement agency should not only pay attention to the damage to competition brought about by acquisition, but also to its positive role in promoting economic development. It should balance the pros and cons so that it can reach a rational conclusion and maintain the authority of law. I think the society should take a balanced attitude to acquisition by foreign capital, and prevent nationalism to go spread unchecked. I also hope that the international media should not overreact to this case, which could become the excuse for other countries to practice trade protectionism. The Chinese government simply made a misleading yet not wrong decision at a wrong place in a wrong time.




Bio. Of Professor Jin Sun

Jin Sun is a professor of law at Wuhan University. He is secretary-general of Hubei Province Economic Law Studies Association, and visiting scholar at Center of Law and Society and University of California, Berkeley. Professor Sun's specialty area is anti-monopoly law and corporate law.

Tianjue Luo and Ling Yang
ChinaRains at Stanford University