1. Latham & Watkins operates as a limited liability partnership worldwide with an affiliate in the United Kingdom and Italy, where the practice is conducted through an affiliated multinational partnership © Copyright 2003 Latham & Watkins. All Rights Reserved. THE COMING CHINESE ANTITRUST REGIME A Brief Display of Fireworks...... or Long March to a Free Market? Abbott B. Lipsky, Jr. September 7-8, 2006 Washington, DC

2. Introduction and Outline Legal and Economic Patterns in China – Past and Present China’s Antitrust Landmarks The Push for a Chinese Antitrust Law – Tensions and Possible Outcomes Check-List for This Year and Next Year

3. Legal & Economic Patterns The Role of Law in China Contrasts Between Western and Chinese Legal Understanding and Practice Recent Evolution of Chinese Law WTO and Other International Norms IP Protection Corporate Form Chinese Economic Organization Before Deng Xiaoping Marxist Theory Private Economic Activity as a Serious Crime Economic Evolution in the Era of Reform Dramatic Growth of Investment and Trade Evolution of State Ownership and Control

4. China’s Antitrust Landmarks Origins of the Current Draft Law Provisional Regulations on M&A Provisional Regulations on Pricing The SAIC Report Emerging Drafts of the Antimonopoly Law New Provisional Regulations on M&A

5. The Push for a Chinese Antitrust Law – Tensions and Possible Outcomes Article Six – Applicability to the State and its Agencies Regulation and Other Official Acts State-Run and State-Owned Enterprise Enforcement Authority Agencies and Their Powers Appeal and Review Dominant-Firm Conduct Antitrust and Intellectual Property Purposes Preserving the “Socialist Market Economy” National Security

6. Check-List for This Year and Next Year Item 1: Local Advisor(s) Knowledgeable of China and Chinese Government Practice Item 2:Expert Antitrust Practitioner(s) Knowledgeable of Recent and Current Chinese Antitrust Developments Item 3: Consider an Audit of Practices, Arrangements and Prospective Transactions in Terms of the Draft Law