Insights and Analysis

China’s 2025 Anti-Unfair Competition Law Revision: A new era of enforcement and accountability

25 July 2025

Key takeaways

China’s 2025 revision to the Anti-Unfair Competition Law (AUCL), effective 15 October 2025, marks a major regulatory shift aimed at strengthening market integrity and aligning with global enforcement trends. The law introduces personal liability for individuals involved in commercial bribery, expands enforcement tools and penalties, and extends jurisdiction to unfair practices committed abroad. It also targets both the giving and receiving of bribes, and emphasizes transparency in business practices such as discounts and commissions. These changes signal a new era of accountability, urging companies to proactively update compliance frameworks and internal controls.

Issued by the Standing Committee of the National People's Congress on 27 June 2025 and effective from 15 October 2025, the revised Anti-Unfair Competition Law (AUCL) marks a significant regulatory shift in China's market governance. This third major revision since the law's inception in 1993 introduces a more robust enforcement framework, with a sharpened focus on bribery, individual liability, and extraterritorial reach. Legal, compliance, and audit professionals should take note of the law's expanded scope and heightened penalties.

Key developments and strategic insights

1. Dual focus on bribery: giving and receiving

Article 8 of the revised AUCL explicitly prohibits not only the offering of bribes by businesses but also the acceptance of bribes by employees, agents, and third parties who influence transactions. This dual focus reflects China’s broader anti-corruption strategy of investigating both sides of bribery transactions. The inclusion of recipients in enforcement aims to curb coercive practices, especially where dominant parties solicit improper benefits from weaker counterparts. This regulatory rebalancing is expected to deter extortionate demands in sectors such as healthcare procurement and public tenders.

2. Introduction of personal liability

The revised AUCL introduces personal liability for legal representatives, key personnel, and directly responsible individuals involved in commercial bribery. Fines of up to ¥1 million and confiscation of illegal gains may be imposed. This aligns with the dual-penalty principle seen in criminal law and reinforces internal accountability. However, based on enforcement trends, liability is not automatically assigned. It typically requires demonstrating both subjective fault and objective involvement of individuals. This often involves roles in decision-making, planning, approval, or at least tacit consent. Future enforcement will likely clarify standards for determining personal responsibility to avoid arbitrary application and regional inconsistencies.

3. Escalated penalties and enforcement tools

The revised law increases the maximum fine for commercial bribery from ¥3 million to ¥5 million. Supervisory authorities are granted broader powers to seize assets, inspect accounts, and summon individuals. These tools enhance deterrence and signal a more aggressive enforcement posture.

4. Treatment of unrecorded discounts and commissions

The AUCL continues to require that discounts and commissions be truthfully recorded. While failure to do so may not directly trigger administrative penalties under the AUCL, it may raise suspicions of bribery and attract regulatory scrutiny. Such conduct may also violate other laws, leading to broader legal exposure.

5. Long-arm jurisdiction

Article 40 introduces extraterritorial application: acts of unfair competition committed outside China that disrupt the domestic market or harm Chinese businesses or consumers fall within the law’s scope. This provision aligns with global trends in cross-border enforcement and may affect multinational operations.

6. Clarification on interview subjects

The revised AUCL introduces a non-punitive interview mechanism for regulatory engagement. Notably, the final version omits mandatory inclusion of legal representatives as interviewees, addressing concerns about operational disruption. Instead, 'relevant responsible persons' may be summoned based on case specifics, allowing for more efficient and targeted oversight.

Recommendations for legal and compliance teams

To prepare for the revised AUCL’s implementation, companies should consider the following steps:

Review and update anti-bribery policies, ensuring they cover both giving and receiving of improper benefits.
Enhance training programs for staff, particularly those in sales, procurement, and compliance roles.
Audit internal controls and accounting practices to ensure transparency in discounts and commissions.
Assess cross-border operations for potential exposure under the law’s long-arm provisions.
Thoroughly investigate potential misconduct and assess the need to engage with regulators where potential risks are identified, especially in sectors with high enforcement activity.

Conclusion and outlook

The 2025 revision of the AUCL reflects China’s commitment to a more transparent, accountable, and competitive market environment. With greater enforcement powers, higher penalties, and broader jurisdiction, businesses must act swiftly to align their practices with the new legal landscape.

All departments are encouraged to proactively review their internal controls and compliance frameworks. For further guidance, please contact Hogan Lovells’ compliance and regulatory teams.

Authored by Calvin Ding and Evelyn Ni.