After targeting the education, real estate, and big tech sectors, Beijing is now looking to reinforce anti-monopoly regulation on pharmaceutical companies.
Reuters reported that the Chinese Ministry of Industry and Information Technology said, on Jan. 31, it wanted the freshly tightened laws to create fairer competition in the market and counter behaviors such as commercial bribery.
The announcement came after China introduced its anti-monopoly guidelines last November. Chinese authorities also pitched stricter enforcement on monopolistic activities regarding drug shortages and active pharmaceutical ingredients (API).
APIs are the products that China manufactures and exports in large quantities.
The Chinese regime promised to form and implement entity guidelines in API markets. Pharmaceutical companies should also be prepared for more scrutiny on antitrust violations.
Before the pharmaceutical industry, the tech sector in China suffered dramatically following the anti-monopoly clampdown, with big companies suffering significant capital losses. Critics also said the penalties on tech companies were for the regime’s control on private entities.
The Diplomat’s article titled ‘A Struggle for Information Control Between China’s Government and the Tech Giants‘ suggested that Beijing wanted to get power over these firms because “unlike state-owned enterprises, these private-sector companies sometimes wouldn’t unconditionally yield their data and information to the regime when asked, an alarming collision with the statist model.”