China’s New “National Market Supervision Administration” Explained

According to the new institutional reform program, to implement the plan of forming new a national market supervision administration. At present the state general administration of quality & inspection (AQSIQ) set up 17 divisions (offices and bureaus), the State Administration of Industry and Commerce (SAIC) has 11 departments, the State Food and Drug Administration (ASFD) has 19 divisions. The AQSIQ involves quality management, measurement, customs clearance, health and quarantine, animal and plant quarantine and so on. The AIC is responsible for the registration of enterprises, the protection of the rights and interests of consumers, the management of the market and so on. The ASFD involves food and drug supervision. Due to the functions of these three above departments are similar, and they are all market supervisors, so the new with the integration of the national market supervision administration will integrate them into one it is beneficial to the decentralization of power and the efficiency of supervision.

In consideration of the particularity of drug regulation, the State Administration of Drug Administration (State Administration of Drug Administration) will be established separately and will be governed by the new administration. Market supervision will be classified into hierarchical management. Drug regulatory agencies are only set up at the provincial level, and the supervision of drug sales and operation is carried out uniformly by municipal and county regulatory departments.

In the past, Chinese antitrust agencies are consisted by the National Development and Reform Commission (NDRC), the Commerce Commission and the State Administration of Industry and Commerce (SAIC). The NDRC is responsible for the price monopoly agreements, abuse of dominant market position and relevant administrative monopoly in anti-monopoly law enforcement, SAIC is responsible for non-price monopoly agreements, abuse of market dominant position and administrative monopoly in anti-monopoly law enforcement etc., while the Ministry of Commerce is responsible for business concentration antitrust review. Such a meticulous division can easily lead to inconsistent judgments among different departments but make the anti-monopoly work in a low efficiency state, and sometimes it is difficult to maintain a fair market. After the establishment of the new Administration, the above anti-monopoly departments will be integrated, and will undertake anti-monopoly law enforcement, standardize and maintain the market order.

China is promoting the implementation of quality strategy. For a long time, due to many departments of supervision and control of the market, resulting in a variety of criteria, and there are a lot of problems in the process of implementation the law. Therefore, although many supervision departments, but the phenomenon of fake products are still grave, it should be said that in the process of overcapacity and forcing enterprises to strengthen the market competition, due to lack of supervision, resulting in a drop in product quality, enterprises rely too much on low cost competition. With the establish of new administration, it will be responsible for the supervision of the safety of the quality of industrial products, the safety of food and the safety of special equipment, unified standards for inspection, inspection, accreditation, etc. To build a new supervision model that runs through the whole process of production, circulation and consumption, and constructs a new mode of supervision of administrative examination and approval, law enforcement supervision and technical support. This is not only related to China’s implementation of the strategy of quality, but also an important goal of consumer protection.

Consumers in China can expect the quality of consumer goods and services to improve in an all-round way. We may expect better implementation the policies of commodity quality commitment, unqualified commodity delisting, problem commodity exchange, consumption dispute settlement and we may expect a more safer market of food, drug and other products. And we may expect changes to further regulate the operation of electricity providers and other new areas of consumption, to combat the use of Internet counterfeit and other acts against the interests of consumers. We can expect special rectification action will be taken on the areas which many consumers have reflect the problems, through a series of measures of quality monitoring, administrative interviews, consumer survey, public comment, social exposure, industry norms, gradually get rid of the unfair rules against the interests of consumers.

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