[Comment]This is a message from Ethcal Corporation, by James Rose. I also read the Chinese version from Financial Times yesterday and then I pasted the two versions here at the same time to save my time to do translate. In this case, I do not think the company can win at this point. Possibly, it will be settled under the table.
Fledgling anti-monopoly laws in China are being pushed further than the authorities would like as a mobile phone company takes legal action in its fight for access to the market.
The action is being taken by a local private company, Aux Group, which claims that its access to the mobile phone market is being obstructed by the powerful Ministry of Information Industry.
The claim is based on the ministry's role in handing out licences for producing handsets. The system, says Aux Group, requires Aux to sub-let licences from licensees and stops it from using its own brand.
The system has long been identified as a block to an open market. It is known locally as a "statutory monopoly" by which government departments can create market monopolies or oligopolies by selecting favoured suppliers for the local market and barring competitors from full entry to the marketplace.
The Chinese government claims it needs to do this to protect local industry from massive multinational mobile phone makers, such as Nokia and Motorola.
"These methods are clearly wrong under the new law," Li Xiaolong from Aux Group said.
Recently, Beijing has introduced new anti-monopoly laws that are intended, among other things, to end the practice of creating monopolies via government fiat.
Legal authorities say this is a landmark case that will test the government's commitment to anti-monopoly legislation. Zhang Shuyi from the China University of Political Science told the Financial Times that the case signified a stage in the shift from "rule by individual" to "rule by law".
"Only through a case like this can the government be gradually guided on to the road of law-based administrative conduct," he said.
The action is so unusual that the First Intermediate People's Court appears confused about whether to hear the case, citing a lack of confidence over its authority in such a case.
The ministry is expected to contest the case if and when it reaches the courts.
Bureaucrats say they are still attempting to bed down aspects of the law's interpretations and administration and this may be behind the court's delay.
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