The draft anti-monopoly law, dubbed as the Constitution in economic field, was submitted to the Standing Committee of the National People's Congress (NPC), or China's legislature, for first deliberation after more than 10 years drafting work.

The aim of the law is to protect fair competition, prevent and check monopolistic behavior and maintain an orderly market place.

The 22nd session of the 10th NPC Standing Committee is to be held from June 24 to 29.
The draft law bans monopolistic agreements, such as price-fixing and other forms of collusion and provides for investigation and prosecution of monopolistic practices.
The draft law bans monopolies wielding their dominant status to curb competition.

It would help open some markets wider to foreign competition, at the same time would help prevent foreign companies from acquiring "more and more Chinese firms" and help safeguard national economic security.

A special anti-monopoly commission, which consists of officials and experts, will be set up to deal with anti-monopoly cases, according to the draft law.

Cao Kangtai, director of the Legislative Affairs Office of the State Council on Saturday told the legislature that China, as a country adopting market economy, needs to set up and implement an anti-monopoly law to ensure business operators to participate in fair competition and to regulate the market order.

"Currently, some monopolies is taking advantage of their dominant status in market in a bid to fix prices, conduct forcible trade, engage in package sale, and set unified price, divide market and limit production output with other major business operators. Their behaviors severely affected fair competition and infringed upon the legitimate rights of consumers and small business operators," Cao confessed.

He also said "with the frequent domestic and overseas company merging and reshuffle, monopolies emerged in some areas and in certain sectors.Therefore, it is very necessary to formulate the anti-monopoly law."

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