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Public Sector Restraints of Trade

Public Sector Restraints of Trade. The China AML and its Contribution to Efficiency. State Measures and State-Owned Companies. The problem of public sector restraints of trade Need to focus on both public and private restraints that are anticompetitive Need to focus on promoting efficiency

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Public Sector Restraints of Trade

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  1. Public Sector Restraints of Trade The China AML and its Contribution to Efficiency

  2. State Measures and State-Owned Companies • The problem of public sector restraints of trade • Need to focus on both public and private restraints that are anticompetitive • Need to focus on promoting efficiency • Dealing with over-capacity problem • State-Ownership; Definitions and Spectrum from Privileges to Full Ownership

  3. US/EU Approaches to Public Sector Restraints • Historical Perspective • US – State Action Exemption • Evolution Towards Market Economy Investor type test, not unlike EU State Aids jurisprudence • EU State Aids Jurisprudence • Altmark, Services in the General Economic Interest

  4. Treatment of Public Sector Restraints • China AML Provisions on Administrative Monopolies and State-Owned Companies • Important Step in Ensuring Competitive Markets Between Private and State-Owned or Privileged Companies • Benefit to Efficient Markets, Resource Allocation • Maximized China’s Economic Growth Potential

  5. Spectrum Between State Measures and State Owned Companies • Definition of State-Owned Companies • Spectrum from State Measures to Full Equity Ownership • Includes Privileges, Grants • Examples of Different Kinds of State Ownership

  6. Specific Examples of SOE Activities (I) • Predatory Conduct • Appropriate Use of Predatory Pricing Test • Brooke Group and Modifications for SOEs • Evaluation of Measures of Cost for SOEs

  7. Specific Examples of SOE Activities (II) • Exclusionary Practices • Refusals to Deal, Essential Facility • Different Approach from Purely Private Conduct • SOEs as Revenue Maximizers • Different Tests Should Be Applied to Achieve Equivalent Competitive Environments

  8. Specific Examples of Administrative Monopoly Activities • Regional Blockade (Provincial) • State Aid Type Measures • Impact on Welfare? • State Measures that impact competitive landscape • Regulatory Exemptions • Privileges • Other

  9. Importance of Competition Advocacy • Competition Advocacy Takes Many Forms • Evaluation of Competition Advocacy Experiences • Japan Postal Privatization and the Role of the JFTC • Mexico’s Advocacy Report on Tariffs and Customs Procedures • Working with other Government Departments and Agencies • Value of Networks e.g. ICN

  10. Presentation to Chinese Inter-Agency Delegation Shanker Singham Squire Sanders & Dempsey, L.L.P. Delivered at US Chamber of Commerce March, 2009

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