Abstract
This research focuses on China, exploring the relationship between competition law and sustainable development within the context of rapid economic growth. It specifically examines how China's competition law and policies interact with selected SDGs - SDG 8, 12, 13, and 16. The study employs a qualitative approach, incorporating a systematic review of literature, legislative actions, and empirical data. Key case studies were chosen based on their relevance to SDGs, impact on competition laws, and data availability. These cases provide insights into the successes and challenges of China's approach, highlighting the tension between fostering national industries and maintaining healthy competition. The study also examines how competition laws can contribute to societal objectives beyond economic growth. It connects China's legislative framework with real-world outcomes, identifying areas of alignment and disparity.
TopIntroduction
On the surface, sustainable development goals (SDGs) and competition law appear to be unrelated policy domains. A closer inspection, however, uncovers an intriguing overlap and mutual impact between them. The primary goals of competition law are to provide free and open markets, curb anticompetitive behavior, and safeguard consumer interests (Dennis Jr, 2011). The goals of economic growth, responsible consumerism, climate action, and the establishment of strong institutions all fit in well with these aims.
The United Nations' sustainable development objectives are an international rallying cry for a world free of poverty, environmental degradation, and conflict by the year 2030 (Kamau, Chasek, & O'Connor, 2018). Many of the 17 SDGs, which span a wide range of economic, social, and environmental goals, depend on the presence of free and fair markets. The rules of competition law apply here.
In order to achieve SDG 8, which calls for increased economic growth, competition legislation prohibits anti-competitive acts and encourages fair commerce. Overexploitation of resources and the formation of wasteful monopolies are two examples of how it can indirectly promote responsible consumption and production (SDG 12). In terms of SDG 13, establishing a level playing field for firms through competition law can encourage the development and distribution of environmentally friendly technologies. In terms of SDG 16, which aims to create institutions that are effective, responsible, and inclusive, the implementation of competition law is an important factor (Coates & Middelschulte, 2019).
As a result, the overlap between competition law and SDGs is not only genuine but essential to the achievement of these global goals. Strategic application of competition law can pave the way for environmentally responsible business practices that help achieve the SDGs' lofty targets.
Due to its spectacular economic transformation and continuous efforts towards sustainable development, China's experience provides a unique case study at the junction of competition law and SDGs. China's impact on the international economy is undeniable, given its status as the world's second largest economy (Zreik, 2023a). Management of competition in its market can have far-reaching consequences on the country's economy, as well as on global trade and sustainability goals. Therefore, other nations can learn from China by studying how it employs competition legislation to promote sustainable development.
In addition, competition law has had to develop and evolve in China as the country has moved from a centrally planned economy to a market-based structure (Hitt & Xu, 2016). This interesting historical and societal setting provides a framework against which to assess the contribution of competition law to achieving the SDGs.
Even while the SDGs are focused on topics like economic growth, environmental protection, and social justice, China is currently confronting significant difficulties striking that balance. This makes the Chinese example especially instructive for other quickly growing economies that may encounter comparable difficulties in their quest for sustainable development.
The Chinese government has demonstrated its support for the SDGs by including them in the country's overall strategy for economic growth (Sharif et al., 2022). China's experience offers a wealth of practical insights into how competition law and policy can be used to achieve sustainable development goals because of the country's emphasis on sustainability and its implementation of competition law.
Key Terms in this Chapter
Market Dominance: A situation where a single company or group holds substantial market power, allowing it to control pricing, supply, and other market-related factors.
Green Technologies: Innovative tools, technologies, and approaches designed to mitigate or reverse the negative impacts of human activity on the environment.
Institutional Capability: The ability of an organization to effectively implement and enforce policies and laws.
Economic Efficiency: The optimal distribution of resources in an economy, where it is impossible to make someone better off without making someone else worse off.
National Development and Reform Commission (NDRC): A macroeconomic management agency under the Chinese State Council, which has broad administrative and planning control over the Chinese economy.
Competition Law: A legal framework designed to promote or maintain market competition by regulating anti-competitive conduct by companies.
Sustainable Development Goals (SDGs): A collection of 17 global goals established by the United Nations in 2015, aimed at addressing a range of social, economic, and environmental challenges by 2030.
Environmental Impact Assessment: A process of evaluating the likely environmental impacts of a proposed project or development, taking into account inter-related socio-economic, cultural, and human-health impacts.
Anti-Monopoly Law (AML): A legal provision aimed at preventing the formation of monopolies and promoting fair competition in the marketplace.
State Administration for Market Regulation (SAMR): A ministerial-level agency directly under the State Council of China that is responsible for business regulation and market supervision.