NPC set to pass anti-monopoly law

China's anti-monopoly law is likely to be passed this week, state media reported. The law may well require security checks for foreign firms that move to purchase local rivals in addition to prohibiting the use of administrative powers to disadvantage competitors, as well as banning monopoly agreements and abuse of a dominant market position. No other details of the law's content or which body would be responsible for implementing it were given. The anti-monopoly law was drafted in 1994 but not submitted for first review until June of last year. If it is passed by the standing committee of the National People's Congress, it will come into effect on August 1, 2008. Any requirement for national security checks on foreign deals is likely to spark concerns among overseas investors. A number of acquisitions have been criticized or derailed by nascent economic nationalism and fears that China is selling too much influence to foreigners at too low a price.