Exploring the extraterritorial application of antitrust laws

In early 2013, an enterprise in country A intends to set up a join venture enterprise Z with an enterprise in country B. Joint venture Z is a business that involves the simple processing of steel products (steel cut). Raw materials (steel products) are all imported from country A and country B, and the products are sold in country C.

X and Y, both large conglomerates, have already invested and established subsidiaries in China, but have not established a joint venture or cross-hold shares within China. X and Y each has a worldwide revenue of more than RMB10 billion (US$1.52 billion) and a revenue of more than RMB1 billion in China in 2012.

According to article 2 of the Provisions of the State Council on the Standard for Declaration of Concentration of Business Operators, business operator concentration includes the situation where a business operator acquires control over other business operators by contract or other means or can exert a decisive influence on other business operators.