EU warns against using antitrust law for trade benefits
6 September 2007
The EU's competition commissioner warned China against using national security as a pretext for protectionist measures, AP reported. The commissioner, Neelie Kroes, said a national security clause in China's recently adopted anti-monopoly law could be abused for protectionism. "We will defend a very restricted implementation and interpretation of that point on national security," said Kroes. The anti-monopoly law, passed last week, is designed to break up state-owned monopolies. It also requires a national security check if a foreign firm acquires a Chinese company. The law will take effect next August. However, a number of strategic industries will be permitted to maintain state monopolies, including power production, petroleum and civil aviation.