China's Retail Opening Up Legal Regulation

One of the most profound changes wrought by the Membership in the World Trade Organization is the opening of China's distribution industries, which were once acquired high degree of protectionism before the entry. Along with the phasing out of restrictions on distributions and distribution services for most products, the equity and quantity for foreign investment in China's retail industry are booming.Due to the elimination of restrictions, new trends in China's retail industry are emerging, such as the options to establish wholly-owned foreign enterprises rather than operate through a joint venture, the wave of Mergers & Acquisition and monopolization of large retail stores.However, serious damages to fair competition and Chinese macro-economy ensued. Therefore, on the basis of living up to its commitments, Chinese Government should devise laws and regulations to promote competition and restrict monopolistic or oligopolistic practices that may impede the evolvement of China's retail business.The thesis begins by examining current situation of China's foreign-invested retailers, interpreting the General Agreement on Trade in Services, relevant commitments and China's domestic regulatory environment. And then some arguments are to be made for the necessity of establishing a mechanism to regulate large retail stores'dramatic expansion in China. In Conclusion, some suggestions is to be given on devising China's Anti-monopoly Law and urban planning system.