This paper tries to briefly introduce China’s attempt to control state restraints with the
Anti-monopoly Law of the People’s Republic of China (“AML”) against the two most common forms of China’s state restraints, the administrative monopolies and the monopolies carried out by state-owned enterprises. The article starts by presenting the problems of state restraints in the economic context of China, and then it sets forth the relevant legal framework against the state restraints under the AML, which includes both the administrative-oriented enforcement conducted by the anti-monopoly enforcement authorities, and the judicial-oriented enforcement. The analysis of the relevant high profile cases will also be included in this section. The article moves on to evaluate the effectiveness of such enforcement and to provide the observations on the achievements and limitations of the AML enforcement against state monopolies. Lastly, the article suggests an outlook of the reforms where China could implement to deal with illegal state involvements in the economy.