Revisions to the Anti-Unfair Competition Law in China: Key Updates
The newly revised Anti-Unfair Competition Law in China came into effect on 15 October 2025. In this article, Shanghai K-Insight Law Firm provides an overview of the latest changes and highlights what businesses should be aware of when navigating compliance requirements under the updated legal framework. The revision strengthens the regulatory environment surrounding unfair competition practices and addresses emerging issues arising from digital markets and evolving commercial behaviour.
Key Updates
- Improved provisions relating to acts of unfair competition.
The revision refines the scope and definitions of unfair competition, helping businesses to better understand what conduct is prohibited.
- Detailed descriptions of behaviours such as commercial bribery, false advertising, improper premium sales and commercial defamation.
These clarifications aim to reduce ambiguity and ensure that regulators and businesses have clearer standards for identifying and preventing common unfair practices.
- Improved provisions on unfair competition behaviours on the internet.
The updated rules address issues arising from digital platforms, algorithms, data use and online marketing, reflecting the rapid growth of internet-based commercial activity.
- Added provisions governing “involutionary/unhealthy” competition.
These provisions target excessive or irrational competitive behaviour, such as price wars or resource-wasting tactics, that disrupt normal market order and create unnecessary pressure on market participants.
- Added provisions addressing the issue of arrears in payments to small and medium-sized enterprises.
The revised law strengthens protections for SMEs by discouraging unfair delays in payment and supporting healthier cash flow and business stability.
- Added provisions on extraterritorial application effectiveness.
The amendments clarify when the law applies to conduct occurring outside China that affects domestic markets, enhancing the government’s ability to regulate cross-border unfair competition.
The 2025 revision of the Anti-Unfair Competition Law reflects China’s ongoing efforts to strengthen a fair, transparent and predictable business environment. By refining definitions, addressing digital-market challenges and adding protections for SMEs, the updated law aims to create a more level playing field for all market participants. Businesses operating in China should familiarise themselves with the new provisions to ensure ongoing compliance.
