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 Dealing with over-capacity problem State-Ownership; Definitions and Spectrum from Privileges to Full Ownership

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

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

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

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

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

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

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

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