China's Take On Take-Or-Pay, Most-Favored-Nation Clauses

Law360 (July 3, 2019, 12:16 PM EDT) -- On April 29, 2019, China's State Administration for Market Regulation published the Shanghai Administration for Market Regulation’s penalty decision[1] of Eastman (China) Investment Management Co. Ltd. In this case, Eastman was fined 24 million yuan, for abusing its market dominant position to restrict its counterparties to deal exclusively with itself without justifiable reason, and therefore violated the Anti-Monopoly Law of China.

This article intends to briefly introduce the Eastman case and explain the analysis of the Shanghai AMR regarding the take-or-pay and most-favored-nation clauses, and then put forward some compliance suggestions based on relevant cases in China and abroad.

Eastman Case...

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