Pakistan, China moving towards ‘competition cooperation framework’

Islamabad: Pakistan and China are progressing towards a bilateral competition cooperation framework, as their respective competition watchdogs delve into technical collaboration in areas such as cartel detection, merger control, digital markets, and market intelligence. The Competition Commission of Pakistan (CCP) and China's State Administration for Market Regulation (SAMR) are expected to enhance their collaboration in detecting cartels, regulating mergers, and analyzing digital markets, as a key element of their partnership established in June 2024.

This framework, the first international agreement signed by SAMR, provides a platform for bilateral meetings, training programs, workshops, research collaborations, and information exchanges. The latest developments underscore a shift from setting up the cooperation framework to putting it into practice. CCP Chairman Farid Ahmad Tarar expressed Pakistan's eagerness to leverage China's extensive competition-enforcement experience through technical training, expert exchanges, workshops, and knowledge sharing.

Digital markets are anticipated to be a significant area of cooperation, given the growing challenges posed by artificial intelligence, algorithms, data-driven business models, and digital platforms. The cooperation between the two regulators gained traction after a high-level Chinese delegation led by SAMR Vice Minister Dr Gan Lin visited Pakistan in October 2023, discussing market regulation, capacity building, cartel detection, and collaborative research.

The signing of the MoU during Prime Minister Shehbaz Sharif's visit to China in June 2024 highlights the significance of this partnership amidst expanding Pakistan-China trade and investment ties, including the China-Pakistan Economic Corridor (CPEC). The enhanced cooperation between CCP and SAMR is set to bolster the capabilities of both institutions in addressing complex competition concerns in increasingly interconnected and digital markets while fostering a competitive and predictable environment for the growth of Pakistan-China trade, investment, and economic cooperation.