Horizontal conduct · 02 Editorial guide
Cartels and Horizontal Agreements in China
Competitor contact, information exchange and joint-venture overlays.
First job Identify the counterparties and the contact channel before assessing risk.
Direct answer
What this page decides
01
This page owns AT05: agreements and concerted practices among competitors. Price fixing, market or customer allocation, output limits and bid rigging are the core. Information exchange and trade-association activity can be enough without a signed cartel. Purchasing collaborations and JVs need a merger-control overlay when they are concentrations. Raids go to Investigations L4 (and national dawn-raid if officials are on site). Do not invent leniency windows or fine percentages.
At a glance
Which fact changes the next route
Use the fact that changes ownership or urgency to decide the next move.
| Question | Why it matters | Next route |
|---|---|---|
| Competitor on the email? | Horizontal by default until proven otherwise. | Stop the thread; preserve. |
| Trade association stats? | Can be an exchange. | Counsel before sending granular data. |
| Joint bidding? | May be allocation or a legitimate consortium. | Document independence or file as concentration if it is a JV. |
| SAMR at the door? | Wrong page for choreography. | Investigations L4 + dawn-raid L4. |
Scope
What this page owns — and what it does not
Practical workflow
Action, evidence, legal gate, output
| Action | Documents / evidence | Legal gate | Output |
|---|---|---|---|
| Identify counterparties | Who competes where | Competitor vs vertical | Map |
| Stop live exchanges | Email, WeChat, meetings | Preserve, do not delete | Hold |
| Classify conduct | Price, allocation, bids, info | Counsel | Risk class |
| Choose response path | Internal facts | Leniency/investigation L4 | Strategy |
| Remediate programmes | Association membership, templates | Compliance owner | Controls |
Documents
What to gather before the next call
These items help clarify the file; they are not a legal requirement list.
| Item | Why needed | Who holds it | Risk if missing |
|---|---|---|---|
| Meeting calendars and WeChat groups | Contact evidence | Sales | Unexplained competitor contact |
| Bid files | Rigging analysis | Tender team | Cover pricing |
| Association materials | Exchange | Government affairs | Granular future data |
Common failure points
Where files usually break
‘Market sounding’ calls with rivals on next quarter’s prices.
Deleting the WeChat group after a rumour of a raid.
Assuming a minority JV is only M&A and never horizontal.
FAQ
Narrow follow-ups owned by this page
Is recommended pricing among competitors OK?
Competitor-side price talk is not ‘recommended RPM’. Treat as horizontal until counsel says otherwise.
Quick answers
Need the short version? Start with one narrow question.
These explainers answer one question. They do not replace this topic route or a deep guide.
Curated resources
Open the asset that matches this job.
Counsel hand-off
What to bring when you instruct
Instruct antitrust counsel (cartel/leniency experience). Bring: who talked, which channel, and whether any authority has contacted you.
Local context
Add the city only when it changes implementation.
Local SAMR practice can matter after the national question is identified.
Open city and province guidesCounsel hand-off
Need competition counsel?
This hub organises transaction, conduct and investigation routes. It is not a filing decision.
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Who reviewed this guide
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