London Daily

Focus on the big picture.
Monday, Sep 01, 2025

Exclusive: China's antitrust regulator bulking up as crackdown on behemoths widens

Exclusive: China's antitrust regulator bulking up as crackdown on behemoths widens

China’s competition watchdog is adding staff and other resources as it ramps up efforts to crack down on anti-competitive behaviour, especially among the country’s powerful companies, people with knowledge of the matter told Reuters.

Beijing’s plan to bulk up the State Administration for Market Regulation (SAMR) comes as China revamps its competition law with proposed amendments including a sharp increase in fines and expanded criteria for judging a company’s control of a market.

On Saturday, the watchdog slapped a record $2.75 billion fine on Alibaba after an antimonopoly probe found the e-commerce giant had abused its dominant market position for several years.

The fine underscores the challenges ahead for companies, including global firms with operations in China, mainly in a tech sector that thrived during years of relatively laissez-faire market regulation.

It also mirrors the increasing activism of U.S. and European antitrust authorities in recent years.

The Beijing-headquartered agency plans to expand its antitrust workforce by around 20 to 30 staff, up from about 40 now, two people with direct knowledge of the matter said.

The watchdog also plans to delegate case reviewing power to its local bureaux and source additional manpower from other government bodies and agencies to handle cases that require extensive investigation, four other people said.

Budgets allocated for antimonopoly investigations, daily operations and research projects will also be increased, said three of the people cited above and one more person with knowledge of the matter.

The people declined to be named as they were not authorised to speak to the media.

The SAMR did not immediately respond to Reuters request for comment.

“An increase in staffing as well as in the quality of the bureau’s law enforcement capabilities is a must for an antitrust push,” said Liu Xu, a researcher at the National Strategy Institute of Tsinghua University.

“Otherwise regulators won’t be able to handle multiple cases at one time, and the public will question how transparent the investigation process would be,” said Liu, a long-time advocate for antitrust enforcement.

GROWING SCRUTINY


The SAMR’s antitrust bureau was established in early 2018 after two other government departments were merged into it to form a single authority to police monopolistic activities.

The bureau has also been armed with new and more stringent laws in the past few months.

SAMR’s enhanced powers come as Chinese President Xi Jinping weighed in last month on the need to “strengthen antitrust powers” to rein in behemoths that play a dominant role in the country’s consumer sector.

“They didn’t feel they had the mandate to do it but now they do. And they are happy about that,” said a legal source close to SAMR, referring to the need to regulate the internet companies, which, he said, were seen as “a bit above the law.”

With growing scrutiny, executives of major internet firms are now required to make routine reports to the antitrust bureau for merger deals or of practices that could fall foul of antimonopoly rules, one of the sources said.

Reeling from the workload, the SAMR has started to expand its presence in more cities such as Hangzhou and Shenzhen on a trial basis, instead of handling the cases all in Beijing, to delegate case reviewing power to local bureaux, two of the sources said. It has also started outsourcing more research work, covering areas including economic and industry analysis, to scholars and its own consultancy committee to speed up cases in progress, one of the sources said.

For now, however, the investor focus is on who among the home-grown technology champions will be the next target of the Chinese antitrust watchdog.

“Other tech companies would be wise to assume they may be receiving the same level of scrutiny and penalty,” said Fred Hu, chairman of private equity firm Primavera Group, referring to the fine imposed on Alibaba.

“The heavy fine on one of the country’s dominant tech leaders also sends a strong message to the broader tech sector that the Chinese regulators, like their European counterparts, are serious about cracking down on Big Tech.”

Newsletter

Related Articles

0:00
0:00
Close
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
Israeli Airstrike in Yemen Kills Houthi Prime Minister
Ukrainian Nationalist Politician Andriy Parubiy Assassinated in Lviv
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
Federal Reserve Independence Questioned Amid Trump’s Push to Reshape Central Bank
British Politics Faces Tumultuous Autumn After Summer of Rebellions and Rising Farage Momentum
US Appeals Court Rules Against Most Trump-Era Tariffs
UK Sought Broad Access to Apple Users’ Data, Court Filing Reveals
UK Bank Shares Dive Over Potential Tax on Sector
Germany’s Auto Industry Sheds 51,500 Jobs in First Half of 2025 Amid Deepening Crisis
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Argentine President Javier Milei Evacuated After Stones Thrown During Campaign Event
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Starmer Should Back Away from ECHR, Says Jack Straw
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
Chinese AI Chipmaker Cambricon Posts Record Profit as Beijing Pushes Pivot from Nvidia
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Welcome to The Definition of Insanity: Germany Edition
Just a reminder, this is Michael Jackson's daughter, Paris.
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
×