Regulators launch campaign against local protectionism

On Tuesday, the macro planner (NDRC), commerce ministry, and market regulator (SAMR) launched a seven-month campaign to crack down on local protectionism.

The campaign aims to stamp out local government policies or actions that restrict market access, including:

• Use of unauthorized approval processes for market entry
• Unjustifiable delays in market entry approval
• Predatory practices by SOEs that stamp out competition

Foreign companies stand to benefit from this initiative. The campaign will root out discriminatory practices against MNCs, such as:

• Preventing foreign firms from accessing local policy initiatives
• Limiting MNCs’ participation in government tenders
• Prohibiting MNCs from entering the local market

Get smart: This campaign is part of Beijing's broader push to improve its attractiveness as an investment destination and increase foreign direct investment.

• Beijing hopes this will mitigate US efforts to undermine its exporters and isolate China from the global economy.

The upshot: Now is a great time for MNCs to voice their concerns and nudge Chinese regulators to improve the business environment.