Originally published in Law360, New York (September 12, 2012, 12:58 PM ET)

Chinese companies should be careful not to interpret as carte blanche for anti-competitive behavior a recent policy statement by the Chinese government encouraging PRC companies to coordinate their activities and cooperate with each other while investing overseas. The statement also highlights the need for foreign companies to be on guard for possible anti-competitive conduct by their PRC business partners (and competitors).

On June 29, 2012, 13 agencies — including the three agencies responsible for enforcing China’s Anti-Monopoly Law: the Ministry of Commerce (“MOFCOM”), National Development and Reform Commission (“NDRC”) and the State Administration for Industry and Commerce (“SAIC”) — issued a jointly drafted "implementation opinion” titled “Encouragement and Guidance on Private Capital’s Healthy Development.” The opinion contains broad sweeping policy statements regarding Chinese foreign investment.