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This paper describes and evaluates the competition policies in Japan, China, and Hong Kong. A simple framework based on the economic incentive of violations of law is used to evaluate the effectiveness of competition policy. After half a century of effort, Japan has finally established of a modern antitrust system, although its surcharge system could be further improved so as to enhance the deterrence effect of the law. China and Hong Kong (as most other East Asia countries) are at the early stage of developing an adequate and effective competition policy. Their short experiences, however, demonstrate the importance and complexity of designing a truly independent enforcement system. Factors impeding the development of competition policy in East Asia include the lack of internal interest, conflicts with other national policies, and the influence of state-supported enterprises. There is much East Asian countries can learn from the cases reviewed, particularly in the field of institution building.


CAPS Working Paper Series No.133 (17/02)

Recommended Citation

Lin, P. (2002). Competition policy in East Asia : the cases of Japan, People's Republic of China, and Hong Kong (CAPS Working Paper Series No.133). Retrieved from Lingnan University website: