A Study On The Monopoly And Antitrust Of Multinational Corporations In China

Chinese government punished the monopoly behavior of multi-national corporations most serious in recent years, and has aroused widespread concern international. Chinese government antis monopoly is aim to protect fair competition and consumers’right, and promote the development of industry. The antitrust action accords with international standard as well. However, multi-national corporations have stronger market power and international influence. They have rich experience and so many strategies to deal with antitrust action. In addition, how to coordinate antitrust with industrial policy and with technology spillover, and how to deal with administrative monopoly, also make the problem of antitrust against multi-national corporations more serious. Therefore, this problem has so much academic and practical value.Based on literature reviews and previous theories, this paper construct a game model consists of multi-national corporations and host government. Multi-national corporations can choose disinvestment or threat to divestment, but they will lose the Chinese large market, so they prefer take more hidden monopoly behaviors after the first punishment. The host government will face an "Impossible Triangle" which makes him can’t protect consumers’ right and promote industry development at the same time. The conclusions from the game model are:multi-national corporations have small probability to withdraw investment, in contrast they are likely to go on monopolizing in hidden ways. A game model consists of multi-national corporations and Chinese monopolies are made later. The result shows that the multi-national corporations have more market shares, profit, and a higher product price without government’s intervention If the government Anti Multi-National Corporation monopoly to limit the multi-national corporations’high price, the market shares of Chinese corporation may reduce; to limit the market shares of multi-national corporations, the Chinese corporation may take the opportunity to raise price, consumers’right will be damaged.The policy proposals include:considering about the status, it’s hard to protect consumers’ right in most cases, so antitrust action should aim to getting technology spillover, promoting domestic industries and then form competitive advantage at the present stage, taking into account the interest of consumers; the reliability of threat to divestment is low, the government doesn’t need to worry too much about it, but should make antitrust more normal, more transparent, and more fair; strengthen punishment to multi-national corporations which take monopoly behavior again; deepen state-owned enterprises reform, try best to eliminate the monopolization in administration; distinguish different types of monopoly, refine the rules for the implementation of antitrust; coordinate competition policy and industrial policy, use reconciliation, reducing punishment, and exemption efficiently.